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Wiluna on home straight for expansion study after wrapping up 175km drill drive at multimillion ounce gold camp

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Wiluna Mining Corporation is in the home straight in its journey to deliver a transformational study on its Wiluna gold mine in WA, after wrapping up resource development drilling.

Wiluna (ASX:WMC) will release the feasibility study on its major sulphide development expansion after wrapping up 175km of resource definition RC and diamond drilling over the past 18 months, the equivalent of running around four marathons.

Eight rigs have been running over that time aiming to increase the confidence in the Wiluna mining centre’s gold resource, increase the confidence in high priority mining areas in its one- to five-year mine planning window, and to confirm the gold producer’s reserves.

WMC has an enviable bounty of measured and indicated resource at 2.14Moz at 5.26g/t (above 2.5g/t cut-off), with an additional inferred resource at Wiluna of 2.10Moz at 4.57g/t (above 2.5g/t cut-off), making it one of Australia’s largest gold camps.

Alongside drilling to increase the confidence of inferred resources to reserve ready measured and indicated resources, the miner is also aiming to extend potential stoping areas along strike, up-dip and down-dip.

The company’s canny strategy has been to define thick high-grade intervals at shallow levels, close to previously mined zones to enable quick development options at low cost.

The most recent results from the mammoth campaign, comprising 56 holes for 13,249m of drill core, have delivered more solid widths and grades at the high-grade Happy Jack and East Lode zones, which are shaping as major ore sources in the coming expansion.

 

Happy Jack shows growth potential

While much of the drilling was designed to convert inferred resources at the centrally located Happy Jack deposit, drilling has also returned high grades below known inferred mineralisation.

There have been multiple high tenor intercepts within 300m of the surface and close to the existing underground mine development in the current drill drive.

The latest intercepts from Happy Jack have included:

  • 37m at 4.95g/t including 3.88m at 7.58g/t (HJRD00065)
  • 65m at 7.59g/t (HJRD0008)
  • 04m at 5.87g/t HJRD00100
  • 31m at 3.73g/t including 3.10m at 7.85g/t (HJRD00101)
  • 34m at 3.55g/t including 0.34m at 20.00g/t (HJRD00108)
  • 72m at 26.84g/t including 0.83m at 53.40g/t (HJRD00113), and;
  • 00m at 12.37g/t (HJRD00115).
Happy Jack cross section. Pic: Wiluna Mining Corporation

 

East Lode building on history of success

Wiluna’s East Lode zone in the south mine area has delivered more than 1Moz of historic gold production, developed in the 1930s and 1940s and for a short period in the early 2000s.

Despite its history as a big and high grade gold producer, the East Lode has been sparsely drilled, with WMC’s efforts focusing on infilling inferred resource areas to the indicated category.

The company says significant high-tenor mineralisation remains in situ around previously mined stopes.

Infill drilling of the hanging wall and footwall lodes presents additional stacked lodes showing potential for resource growth.

East Lode long section. Pic: Wiluna Mining Corporation

Results included:

  • 00m at 5.16g/t (WUDD0073)
  • 30m at 3.95g/t including 2.00m at 7.79g/t and 2.00m at 6.30g/t (WURD0173)
  • 00m at 4.34g/t (WURD0176)
  • 20m at 9.11g/t (WURD0184)
  • 73m at 4.03g/t including 0.73m at 6.59g/t (WURD0187), and;
  • 00m at 7.03g/t (WURD0188).

Three rigs remain at the Wiluna Mining Centre for mine development planning and grade control at the multi-million ounce gold camp, where WMC produced 51,552oz at all in sustaining costs of $1,794/oz in 2020-21, underpinning a 43% increase in NPAT to $20m.

Its stage 1 expansion is due to be commissioned in the December Quarter, with production ramping up to a run rate of 120,000oz a year by the end of FY22 before expanding further with the Stage 2 sulphide development.

This article was developed in collaboration with Wiluna Mining Corporation, a Stockhead advertiser at the time of publishing.

 This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Wiluna on home straight for expansion study after wrapping up 175km drill drive at multimillion ounce gold camp appeared first on Stockhead.

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ASX Small Cap Lunch Wrap: Who’s taking the money and running today?

Danish artist Jens Haaning was given US$84,000 by the Kunsten Museum of Modern Art in Aalborg to create a work … Read More
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Danish artist Jens Haaning was given US$84,000 by the Kunsten Museum of Modern Art in Aalborg to create a work of art.

But instead of using the cash to create the artwork, he instead returned two blank canvases which he renamed “Take the Money and Run”.

“Jens is known for his conceptual and activistic art with a humoristic touch. And he gave us that – but also a bit of a wake-up call as everyone now wonders where did the money go,” museum director Lasse Andersson said.

The contract states that the money is not Haaning’s and must be paid back when the exhibition closes on 16 January 2022.

Andersson said the museum would wait and see what Haaning does, but if he doesn’t return the money they will take the “necessary steps to ensure that Jens Haaning complies with his contract”.

 

To Markets …

The ASX 200 is down 123.10 points or 1.69% at midday today to 7,152.50.

In Europe a range of factors (cough cough Brexit) have sent gas and oil prices soaring.

“Energy prices are on the rise once again today, with Brent crude hitting the highest level in almost three years,” IG analyst Josh Mahony told Morningstar. “Supply constraints appear to be coming at the wrong time, with demand gradually picking up steam.”

In the US, oil prices rose as supply constraints continued to draw on inventories around the world and the rally in natural gas prices also pushed up crude, according to ANZ Research analysts.

But as traders booked profits on the recent rally, the Brent crude price fell 0.6% from 3-year highs to US$79.09 a barrel. And the US Nymex crude price fell by US16 cents or 0.2% to US$75.29 a barrel.

Copper and nickel fell by up to 2% and the gold futures price fell by US$14.50 an ounce or 0.8% to U$1,737.50 an ounce, with spot gold trading near US$1,733 an ounce.

Iron ore fell by US$6.30 a tonne or 5.3% to US$112.35 a tonne.

Investors are closely monitoring the outcomes of many high-stakes deadlines on Capitol Hill this week, setting up potentially chaotic negotiations against the backdrop of expiring government funding and the threat of a possible US default.

In testimony to the Senate, US Federal Reserve Chair, Jerome Powell, noted: “As reopening continues, bottlenecks, hiring difficulties, and other constraints could again prove to be greater and more enduring than anticipated, posing upside risks to inflation.”

“The sooner something there [Capitol Hill] happens, the happier the market will be,” said JJ Kinahan TD Ameritrade’s chief market strategist. “Watching the sausage being made is always a really ugly process.”

 

ASX SMALL CAP WINNERS

Here are the best performing ASX small cap stocks for September 29 [intraday]:

Swipe or scroll to reveal full table. Click headings to sort:

Code Name Price % Change Market Cap
TVL Touch Ventures 0.56 40 $ 285,347,947.20
RDT Red Dirt Metals Ltd 0.845 34 $ 82,796,616.00
CLE Cyclone Metals 0.006 20 $ 23,896,184.91
DCX Discovex Res Ltd 0.006 20 $ 12,843,320.38
CAV Carnavale Resources 0.007 17 $ 14,581,381.82
SIQ Smartgrp Corporation 9.15 16 $ 1,049,639,954.94
WC8 Wildcat Resources 0.029 16 $ 12,937,500.00
OEL Otto Energy Limited 0.0115 15 $ 47,950,097.73
EVE EVE Investments Ltd 0.004 14 $ 13,450,996.62
NSX NSX Limited 0.11 13 $ 27,413,468.66
AFR African Energy Res 0.034 13 $ 20,601,318.90
CCZ Castillo Copper Ltd 0.036 13 $ 41,536,094.98
HCD Hydrocarbon Dynamic 0.018 13 $ 7,044,641.70
SBR Sabre Resources 0.0045 13 $ 6,732,254.60
MAY Melbana Energy Ltd 0.0245 11 $ 58,812,381.98
ALB Albion Resources 0.25 11 $ 6,962,979.38
LCT Living Cell Tech. 0.01 11 $ 5,142,968.83
LNY Laneway Res Ltd 0.005 11 $ 17,568,296.70
OEX Oilex Ltd 0.005 11 $ 25,597,936.60
MTC Metalstech Ltd 0.57 11 $ 85,005,894.85
CT1 Constellation Tech 0.011 10 $ 14,688,617.34
SHH Shree Minerals Ltd 0.011 10 $ 10,632,368.92
TSC Twenty Seven Co. Ltd 0.0055 10 $ 13,304,069.53

 

The biggest small cap winner was Touch Ventures (ASX:TVL), up 40% after listing on the ASX today, raising $100 million at 40 cents a share supported by Afterpay and the Huljich family.

Touch Ventures chairman Mike Jefferies said the ASX listing was a significant milestone for the company.

“A key investment objective for Touch Ventures is to deliver long-term absolute returns to shareholders, primarily from the capital appreciation of its portfolio,” he said.

“Our structure also enables us to provide access to venture capital investments to investors as a company listed on the ASX.”

The company has also completed its investment into Refundid – an instant returns platform for shoppers providing a full refund to consumers before their items are returned to the merchants.

The company invested $1 million to acquire a 10.4% equity interest (10.0% on a fully diluted basis) in Refundid and has agreed to provide a $1.0 million term loan facility to be used to fund customer refunds.

“We were impressed by Brad and the team at Refundid having already built an incredible product, clientele and brand in such a short time frame and are proud to be a part of their journey as they enter their next phase of growth,” TVL CEO Hein Vogel said.

Next up was Red Dirt Metals (ASX:RDT), up 34% on no news, followed by Cyclone Metals (ASX:CLE) andDiscovEX Resources (ASX:DCX). Both were up 20% on no news.

Up 17% was Carnavale Resources (ASX:CAV) off the back of its latest exploration update.

The WA gold explorer said its initial aircore drilling was complete at the Ora Banda South Project – with results expected in mid-November.

And salary packaging and fleet management provider SmartGroup Corporation (ASX:SIQ) rose 16% after getting a takeover offer from TPG Capital (the private equity group, not the telco) and Potentia Capital.

 

ASX SMALL CAP LOSERS

Code Name Price % Change Market Cap
CCE Carnegie Cln Energy 0.002 -33 $ 44,707,721.13
WOO Wooboard Tech Ltd 0.0015 -25 $ 7,644,325.48
MLS Metals Australia 0.002 -20 $ 10,567,970.12
YPB YPB Group Ltd 0.002 -20 $ 12,479,551.30
AIV Activex Limited 0.13 -19 $ 28,341,228.16
RMI Resource Mining Corp 0.025 -17 $ 9,776,822.46
RBR RBR Group Ltd 0.005 -17 $ 7,691,880.52
PGD Peregrine Gold 0.345 -16 $ 13,775,505.95
AUH Austchina Holdings 0.006 -14 $ 12,582,670.53
DDD 3D Resources Limited 0.003 -14 $ 13,581,302.32
EN1 Engage:Bdr Limited 0.0035 -13 $ 10,211,810.06
RNX Renegade Exploration 0.007 -13 $ 7,037,013.10
SUH Southern Hem Min 0.046 -12 $ 12,710,867.36
NAG Nagambie Resources 0.071 -11 $ 39,994,587.68
TKM Trek Metals Ltd 0.12 -11 $ 35,397,498.29
LSR Lodestar Minerals 0.008 -11 $ 11,618,436.13
AWN AWN Holdings Limited 0.76 -11 $ 33,660,170.00
CNJ Conico Ltd 0.043 -10 $ 48,010,313.95
AJQ Armour Energy Ltd 0.026 -10 $ 47,486,381.93
RLC Reedy Lagoon Corp. 0.026 -10 $ 15,660,758.81
MBK Metal Bank Ltd 0.009 -10 $ 11,890,683.04
SIH Sihayo Gold Limited 0.009 -10 $ 36,854,614.13

The post ASX Small Cap Lunch Wrap: Who’s taking the money and running today? appeared first on Stockhead.

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Lefroy finds 6 anomalies at Burns, will kick off RC drilling next month

Special Report: Gold explorer Lefroy has identified six new magnetic anomalies, extending the Burns intrusive corridor to 3000m at its … Read More
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Gold explorer Lefroy has identified six new magnetic anomalies, extending the Burns intrusive corridor to 3000m at its Lefroy gold project near Kalgoorlie.

Burns has a distinctive, positive, aerial magnetic signature due to strong magnetite alteration of the porphyry and basalt rocks that host the mineralisation.

An aeromagnetic survey over the prospect identified the new anomalies, which have defined a corridor of dioritic intrusions – each of which are considered prospective for mineralisation.

Notably, the northwest trending corridor is over 3000m long and is coincident with a +200 parts per million drill hole copper anomaly based on resampling of wide spaced historical geochemical holes.

Lefroy Exploration (ASX:LEX) is focusing on the largest and northernmost magnetic anomaly – Lovejoy – which lies beneath Lake Randall and is adjacent to the strongest drill hole copper anomaly.

Multiple anomalies support a major structure at Burns

While the company has yet to establish the association between Burns and the diorite porphyry intrusions, it believes there’s a genetic relationship between them.

Lefroy also considers the copper and gold mineralisation hosted by both the diorite porphyry, basalt, and massive magnetite veins to be a new style of gold-copper-silver mineralisation in the area.

“The images from the new magnetic data further support our interpretation that the Burns prospect is one of a number of magnetic anomalies each centred on diorite porphyries considered prospective for gold-copper-silver mineralisation,” Lefroy managing director Wade Johnson said.

“These form a corridor of intrusives, likely along a major structure that potentially extends further to the northwest out to Neon.”

Pic: TMI RTP aeromagnetic image showing the full extent of the new aeromagnetic survey and the pronounced annular magnetic anomaly around the Burns Intrusion.

Lovejoy the priority target

The company says the magnetic anomalies provide strong rationale for an exploration program.

Planning is underway for an RC drilling program to begin in October, with drilling at Lake Randall – initially at the Lovejoy site – planned for November.

“We are very keen to commence RC drill testing of these magnetic anomalies, firstly on land then out on to Lake Randall, with Lovejoy the priority,” Johnson said.

“We have plenty of scope to demonstrate that what we have already discovered at Burns is part of a much larger mineral system, outboard of the larger Burns Intrusion that is also yet to be evaluated.”

 


 

 

This article was developed in collaboration with Lefroy Exploration Limited, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Lefroy finds 6 anomalies at Burns, will kick off RC drilling next month appeared first on Stockhead.

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REZ’s nickel hunt continues at East Menzies with more historic finds

Special Report: REZ’s East Menzies gold project is continuing to reveal its nickel prospectivity, with further research of old reports … Read More
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REZ’s East Menzies gold project is continuing to reveal its nickel prospectivity, with further research of old reports unearthing more significant intervals of nickel mineralisation from as close to just 1m from surface. 

Resources & Energy Group’s (ASX:REZ) ongoing nickel investigations at the Springfield and Cepline prospects, part of East Menzies project in WA, have uncovered peak assays from historic drilling of 12m at 1.22% nickel from 2m, 9m at 1.08% nickel from 1m and 7m at 1.46% nickel from 16m.

These intercepts, which were the result of aircore drilling by Pronto Resources in 2008 and rotary air blast drilling by Great Australian Resources (GAR) in 2004, also contained cobalt and zinc mineralisation.

It reads like an Indiana Jones or National Treasure script, REZ was drilling for gold at the Springfield prospect when it hit nickel.

The Richard Poole-led company then discovered some old CRA (now Rio Tinto) and BHP reports which showed the two mining heavyweights had found nickel as far back as the late 60s but weren’t interested in it because they only wanted gold.

Over five decades later, nickel is all the rage thanks to the energy transition and the base metal’s importance in batteries.

“Significantly, the bottom of hole assays for the GAR drillholes terminated in bedrock zones with high nickel content.” – Executive Director Richard Poole  

These results included 15m at 0.13% nickel and 14m at 0.06% nickel, both from 82m depth.

“This further research by REZ has identified additional mineral exploration results at the

Cepline prospect which support the initial findings of nickel mineralisation by BHP in 1986.” – Executive Director Richard Poole   

Nickel holy grail

Now, Richard Poole says these additional results support the view that the ultramafic rocks along the Springfield side of the East Menzies project are prospective for nickel sulphides.

Nickel resources are usually divided between laterite or sulphide deposits.

Sulphides are the holy grail for explorers because they are easier and cheaper to process. This is also what makes nickel sulphides the preferred choice of electric vehicle battery makers.

BHP back in 1986 reported significantly high values of nickel, with a peak grade of 2.9%, and as close to surface as just 6m.

This was at the Cepline prospect in the Springfield Venn zone, some 800m north of the REZ’s recent scout drilling program.

Borehole location plan showing geology and intervals of sulphide mineralisation

Nearly 20 years earlier, CRA reported surface rock samples grading 0.95% to 1.43%, and drill results of 10ft at 1.49% from 55ft and 15ft at 0.77% from 170ft.

Sydney-based REZ is undertaking further research towards developing a suitable exploration program to investigate the mineral bearing potential of the area.

Resources & Energy Group (ASX:REZ) share price chart

 


 

 

This article was developed in collaboration with Resources & Energy Group, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post REZ’s nickel hunt continues at East Menzies with more historic finds appeared first on Stockhead.

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