Recent announcements regarding the South Australian mineral and energy resources sectors
This update covers the July 2018 period and is compiled from information publicly released by companies.
Readers should refer to the latest information available on company websites, particularly in regard to making any forward investment decisions.
Previous news items:
- Alliance Resources
- Andromeda Metals
- Archer Exploration
- Argonaut Resources – Aeris Resources
- Ausmex Mining Group
- Auroch Minerals
- Boss Resources
- Havilah Resources
- Iluka Resources
- Investigator Resources
- OZ Minerals
- Renascor Resources
- Terramin Australia
- Twenty Seven Co.
- Tyranna Resources
- WPG Resources
Historical gold intercepts associated with nine new gold shoots at the Weednanna prospect have been identified from Alliance Resources’ 3D modelling undertaken in support of a maiden resource estimate (ASX release 16 July 2018). Fifty-nine drilling intercepts returned significant gold with the best including:
- 9 m at 25.1 grams per tonne (g/t) Au from 7 m, including 4 m at 53.9 g/t Au from 10 m (98WDDH001)
- 7 m at 21.2 g/t Au from 125 m (98WDDH002)
- 13 m at 8.0 g/t Au from 88 m, including 3 m at 29.6 g/t Au from 98 m (18WDRC006).
A major quartz vein up to 20 m thick was also identified in the immediate hanging wall to gold mineralisation at Shoot 1 returning intercepts of:
- 48 m at 2.0 g/t Au from 54 m, including 7 m at 5.4 g/t Au from 69 m and 2 m at 16.0 g/t Au from 98 m (00WDRC072).
The quartz vein will not form part of the mineral resource estimate at this stage as Alliance believes further drilling is warranted to test for extensions to these gold-bearing zones within this structure.
Initial plans to restrict the 3D geological modelling to the areas of highest drilling density around gold mineralised Shoots 1 to 4 were expanded to include the nine additional shoots once lithological and structural controls on the distribution of gold were better understood and the significance of the additional gold mineralisation recognised from the historical data. The 3D modelling is considered essential for planning exploration to grow the project.
Andromeda Metals raised $1.11 million from a fully subscribed share placement with the majority of funds to go towards advancing the Poochera kaolin–halloysite project, a joint venture with Minotaur Exploration (ASX release 30 July 2018). Key activities over the rest of 2018 include bulk sampling, resource drilling, resource recalculation and engagement with potential product customers.
Using non hydrogen fluoride purification Urbix Resources has purified Archer Exploration’s Campoona graphite from a total carbon content grade of 93–94% to a minimum of +98%. Archer has identified a potential capital cost saving of approximately $14 million over the life of the Campoona graphite project if toll processing in North America is pursued (ASX release 10 July 2018).
These positive preliminary results provide encouragement for continuing joint development of further advanced stages of purification processing of Campoona graphite by Urbix to battery-specific grades and morphologies.
Latest results from collaborative work with the University of Adelaide and FlexeGraph have demonstrated the versatility of Campoona graphite with it being used in a number of different processes to produce graphene and graphene-based products (ASX releases 23 July 2018). In further collaborative work, the University of Adelaide ARC Graphene Hub has produced graphene-based conductive inks used in printing electronic circuits (ASX releases 30 July 2018).
Archer is pursuing an initial public offering on the ASX of its non-graphite assets, including Broken Hill cobalt, North Burra (Blue Hills copper and Ketchowla manganese–cobalt) and Western Australia nickel projects. Ballista Resources, a new incorporated public company, is intended to be the listing vehicle with completion anticipated by the last quarter 2018 (ASX release 19 July 2018).
Argonaut Resources – Aeris Resources
Inversion modelling of geophysical survey data, captured in March 2018, has identified 28 large-volume iron oxide–copper–gold (IOCG) drilling targets on Argonaut Resources’ Torrens joint venture project area (ASX release 16 July 2018). Preparations for a major drilling program are well advanced with drilling expected to commence towards the end of the current quarter.
Ausmex Mining Group
Stage 1 of Ausmex Mining Group’s Burra region magnetotelluric survey over a previously identified (ASX release 25 June 2018) 42 km diameter conductive target has been completed by the University of Adelaide (ASX release 5 July 2018). The structure has similar features to those previously identified under the world-class Olympic Dam IOGC deposit. Stage 2 of the survey is expected to commence following government approval of the Ausmex’s World End tenement application.
Rock-chip sampling of the Princess Royal prospect (Burra project) has returned high-grade cobalt up to 3,570 parts per million (ppm), high-grade gold (6.9 g/t) and copper (25%). Cobalt up to 6,920 ppm was previously reported from rock-chip samples 30 km to the north within the same mineralised northwest structural corridor (ASX release 7 May 2018). A maiden reverse circulation drilling program will target high-grade cobalt in August (ASX release 19 July 2018).
New high-priority targets have been identified from a recent induced polarisation survey at Auroch Minerals’ Bonaventura project on Kangaroo Island (ASX release 6 July 2018). The Dewrang target represents two highly chargeable anomalies at approximately 200 m depth over a strike length of over 400 m. Other high-priority drill targets are at the Vinco and Grainger prospects. Auroch’s maiden drill program will target highly prospective copper, zinc and gold prospects at Dewrang and is expected to begin in the third quarter of 2018.
The maiden drilling program for Auroch’s Arden base metals project received government approval and is expected to commence in early August (ASX release 26 July 2018). Up to 2,500 m of exploratory drilling will test highly prospective zinc, lead, copper and cobalt targets at the Ragless Range, Radford Creek and Kanyaka Prospects.
A restart strategy for Boss Resources’ Honeymoon uranium project has commenced (ASX release 2 July 2018). Once completed, Boss will execute the necessary work programs required to restart Honeymoon, assuming a specified uranium price has been achieved.
The restart is categorised into three key phases:
- Phase 1: Generation of final input data required for the definitive feasibility study including the drilling program to deliver the measured and indicated resource, an optimisation program to deliver further cost savings and/or process improvements and a preliminary execution plan, updated cost estimate and schedule for the restart of the existing solvent extraction plant.
- Phase 2: Definitive feasibility study and permitting updates.
- Phase 3: Detailed execution planning, operational readiness inclusive of the solvent extraction plant recommissioning plan, in conjunction with the ion exchange plant detailed design.
Havilah Resources’ exclusivity period with Wanbao Mining relating to the Kalkaroo copper–cobalt–gold project has expired and Havilah is free to engage with other interested parties (ASX release 2 July 2018). Work on the prefeasibility study continues and is expected to be completed by the end of the year. The positive contribution of cobalt in the ore and enhancing gold recoveries are being evaluated, with the primary objective to optimise the project economics and the ultimate value of the project.
The sale of the North Portia copper–gold–cobalt deposit to Consolidated Mining and Civil is complete, freeing up Havilah to increase its focus on Mutooroo and Kalkaroo, core projects of its ‘Copper Strategy – Enhanced by Cobalt’ (ASX release 12 July 2018).
Following the successful restart of Iluka Resources’ Jacinth-Ambrosia mine in December 2017, it has operated at capacity, producing 329,000 tonnes (t) of heavy mineral concentrate in the first half of 2018. With the Narngulu mineral separation plant in Western Australia operating at a planned slightly reduced rate in the first half, zircon production from Jacinth-Ambrosia was 135,000 t, down 13% from first half 2017 (ASX release 24 July 2018).
To partially offset the impact of declining ore grade over the remaining life of mine, a mine expansion to increase mining and concentrating capacity by about 30% is being considered. The scope of the project includes a second mining unit, wet concentrator plant upgrade and camp capacity increase. Iluka is also considering bringing forward commencement of mining at the Ambrosia deposit to 2019 (previously 2022). The definitive feasibility study is underway and is expected to be completed in the third quarter. Subject to Board approval, project execution will commence thereafter, with production expected from the second half of 2019.
A 24 km long magnetotelluric traverse has been completed over Investigator Resources’ Maslins copper–gold target, located 50 km south of the Carrapateena copper gold project and within the highly prospective Olympic Dam IOCG domain (ASX release 24 July 2018). Results indicate an underlying conductive ‘magnetotelluric flare’ similar to the recently recognised signature at Olympic Dam. Excited by the results, Investigator is seeking avenues to drill the high-priority target as soon as possible.
A reconnaissance drilling program by Marmota over ten new gold and one polymetallic target commenced on 30 July 2018 and is expected to take 2 to 3 weeks (ASX releases 23 July 2018 and 30 July 2018).
OZ Minerals reported a solid second quarter for 2018 with Prominent Hill meeting all production and cost guidance with 27,131 t of copper and 30,873 ounces of gold produced at cash cost of 72c per pound (ASX release 19 July 2018). Carrapateena is also on track with decline development continuing to make excellent progress, above ground infrastructure construction underway and the airstrip complete.
Province expansion drilling at the Khamsin deposit has resulted in some success. Three diamond drillholes testing the extent of the known mineralisation returned broad intersections of zoned bornite and chalcopyrite mineralisation. Results include a broad intersection of 402.6 m at 1.38% Cu and 0.27 g/t Au in DD18KMS031. Results are being used to aid geological modelling of the deposit.
Development of Renascor Resources’ Siviour graphite project remains on schedule (ASX release 30 July 2018). Preparations of the mineral lease application are well advanced and expected to be lodged with the South Australian government later in the third quarter 2018. Work programs supporting the mineral claim application have also been finalised. Upcoming activities include:
- Completion of the prefeasibility study for the downstream production of uncoated spherical graphite using Siviour graphite concentrates.
- Reserve definition and metallurgical drilling, variability and optimisation mineral process testing, mining and engineering studies and other work programs to support graphite concentrates production.
- Advanced offtake negotiations.
- Completion of the definitive feasibility study.
- Negotiations regarding financing a stage-one graphite concentrating facility.
Terramin Australia continues to develop and refine its South Australia gold strategy (ASX release 26 July 2018). A primary focus is to develop the Angas facility as a central processing plant for feed from Bird-in-Hand and utilise spare capacity to treat ore from other potential targets either currently held by Terramin or available for acquisition. Work on the Bird-in-Hand mining lease proposal continues as does preparation of the managed aquifer recharge drilling program.
Twenty Seven Co.
As of 30 July 2018 Uranium SA changed its name to Twenty Seven Co., ASX code TSC (ASX release 30 July 2018).
The second half of the 2018 Jumbuck gold project exploration campaign will commence in mid August sole funded by Tyranna Resources (ASX release 20 July 2018). Infill reverse circulation – diamond drilling will target the Campfire Bore gold prospect, the most advanced and economically viable of all the Jumbuck gold prospects. A maiden reverse circulation drilling program at the South Hilga gold prospect, which has impressive historical rotary airblast drilling results, will also be undertaken.
Jumbuck is part of the Western Gawler Craton Joint Venture with partners WPG Resources and Coombedown Resources. As at 30 June 2018, Tyranna had increased its interest in the joint venture to 70.2% of the northern Jumbuck gold project and 78.1% of the southern Jumbuck gold project.
Latest assay results from WPG Resources’ Near Pit reverse circulation drilling program conducted at Tarcoola in June are the best to date outside the Perseverance Pit with gold values up to 58.40 g/t (ASX release 18 July 2018). Best intercepts include:
- Old Flame prospect
- 22 m (true width) at 6.75 g/t Au from 15 m, including 13 m (true width) at 10.88 g/t Au from 15 m and 6 m (true width) at 21.52 g/t Au from 20 m (OFL0004).
- Howling Gale prospect:
- 1 m (true width) at 21.41 g/t Au from 30 m (HOG026)
- 7 m (true width) at 1.09 g/t Au from 26 m, including 1 m (true width) at 5.12 g/t Au from 31 m (HOG020).
Refer to Tyranna Resources ASX release on 20 July 2018 for an update on the Western Gawler gold project joint venture.
On 30 July 2018 WPG Resources went into voluntary administration with the appointment of Ernst and Young as administrators (ASX release 30 July 2018).