Power Metal Resources (LSE:POW) has signed up with a Canadian specialist drill company for the next phase of its promising Silver Peak exploration. 

The programme for 500m of diamond core drilling of the Victoria Vein is expected to last for two weeks, in advance of winter conditions on site. 

The AIM-listed explorer confirmed bonanza-grade silver at the British Columbia project last month after it hit on a series of “exceptionally high” silver assay samples.

Grades from two 0.5m-long surface channel samples were reported to be as high as 10,718 g/t and 14,937 g/t.

Also contained in the same vein were samples of significant copper and lead grades reaching 2.14 % copper and 2.99 % lead, as well as 3.05 % copper and 11.95% lead. 

It’s here where Power Metal will conduct its first drilling operation. 

Drilling will start from two pads using an NQ size drilling bit for a 48mm core sample. Then half core samples will be sent to an accredited independent lab for analysis. 

Silver Peak marks a significant expansion into North America for Power Metal, at a time when silver spot prices are breaching seven-year highs. 

The silver price has climbed more than 100% since the March stock market crash, hitting $25/oz. And as a proportion of the gold price the precious metal still remains fundamentally undervalued.

Silver is a key component in the semiconductor chips that power almost all modern mobile and computing devices, as well as a critical element for building solar panels because of its exceptional thermal and electrical conductivity. 

CEO Paul Johnson praised his Canadian partners for putting the company in a position to undertake the work before winter weather closes in. 

He said: “The expeditious work undertaken has given us an opportunity to assess this unique high-grade silver project through drilling, far earlier than we initially thought possible."

The team in-country are now focused on mobilisation and commencement of drilling and we are naturally eager to see the outcome of this programme, given the results we achieved from the sampling programme recently announced.

On 14 September Johnson executed the option for a 30% earn-in of the Silver Peak project. 

Silver Peak consists of a wide portfolio of claims spread across 62km2 of a high-grade system of polymetallic silver-lead-zinc-copper veins, part of the historic Eureka-Victoria Silver Mine.

Author: Mark Sheridan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

Ariana Resources (LSE:AAU), the AIM-listed exploration and development company operating in Europe, disclosed better-than-expected preliminary production results for the quarter ended 30 September 2020 for its Kiziltepe project in Turkey. Kiziltepe is part of the Red Rabbit Joint Venture ("JV") with Proccea Construction, in which Ariana owns 50% through its shareholding in Zenit Madencilik San. ve Tic. A.S.

Total gold production in the third-quarter of 2020 reached 5,125 ounces, which is an increase from 4,679 ounces in the previous quarter. The average metallurgical recovery of gold for the quarter remains high at 94.2%. The quarterly production increase reflects increased tons processed that more than offset the impacts of lower average grades.

As with the previous quarter, the Kiziltepe operation continued to demonstrate stable performance despite disruptions caused by the COVID-19 pandemic. “Material movements remain very high, while process plant throughput remains well above average, setting yet another record for the operation; the mill reached an annualised throughput rate of almost 230,000 tonnes per annum which represents an increase of over 53% above the feasibility designed rate.” Dr. Kerim Sener, Managing Director, said in a statement.

Notably, the company had to shift some of its operations in the second quarter owing to pandemic induced restrictions. Because production from the company’s highest-grade pit, Arzu South, came to a close during August, production had to shift entirely to the Arzu North and Derya pits. In the meantime, the Kiziltepe operation was able to maintain a stockpile of over 160,000 tonnes, sufficient to cover about ten months of mill feed at average throughput rates.

As a result of the consistent performance in the past two quarters, the present moment is opportune for a proposed mill expansion. The planned development will provide for an increase in throughput to 400,000 to 500,000 tonnes per annum.

There are additional plans for further development of the Arzu North area in the next quarter. This project is yielding substantially more ore tonnage than modelled previously. In fact, despite the expected reduction in grade, this increased tonnage coupled with continued high mill throughput will ensure output is maintained at the highest possible levels.

Ariana Resources’ Q3 production results were in part driven by the increase in demand for gold. Gold prices have gained 25% so far this year, primarily fueled by the global pandemic. Silver prices have also climbed 34% year to date.

The 100% owned Salinbas Gold Project is located in north-eastern Turkey and has a total resource inventory of c. 1.5 million ounces of gold.  The project comprises three notable licence areas: Salinbas, Ardala and Hizarliyayla, all of which are located within a multi-million ounce Artvin Goldfield.  The "Hot Gold Corridor" contains several significant gold-copper projects including the 4 million ounce Hot Maden project, which lies 16km to the south of Salinbas and 7km south of Hizarliyayla.  A NSR royalty of up to 2% on future production is payable to Eldorado Gold Corporation on the Salinbas Gold Project.

Author: Galina Mikova

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Global Energy Metals (TSX.V) has widened its scope to maximise its exposure to the rapidly-growing battery metals sector.

Speaking exclusively to MiningMaven, the Canadian explorer and developer’s chief executive Mitchell Smith said that the trend toward green technology is accelerating at a faster pace than ever. And the biggest driver by far is the electric vehicle (“EV”) boom.

Pick any forecast, and it will paint a picture of a not-too-distant future where roads around the world are lined with these fossil-fuel-free automobiles. For example, Bloomberg New Energy Finance expects 500 million EVs to be in use by 2040. Even OPEC foresees a global fleet of roughly 320 million of the vehicles by this point.

But to get to this stage, a lot of money needs to be spent.

The UK’s RhoMotion recently suggested that global investment in the EV supply chain will be well more than USD$1 trillion. Meanwhile, Bloomberg expects automakers to invest some US$300 billion over the next five to ten years on EV development and production.

A major part of this expense will arise from the purchase of the raw materials that are needed to create these EVs. And digging even deeper, the most sought-after part of this will be metals like nickel, cobalt, and copper used to create the electric batteries that power these automobiles.

Currently, there is an over-reliance on unstable, third-world jurisdictions when it comes to sourcing these battery metals.

Take cobalt as an example.

This metal is critical to many EV batteries. However, its supply is often limited and disrupted as a result of a considerable over-reliance on mining in DRC – an African country rife with political instability and human rights violations.

The dire need for reliable sources of battery metals in safe, pro-mining jurisdictions as the EV revolution continues to increase is becoming increasingly apparent.

As Smith put it to us: “Supply chains need to be diversified into jurisdictionally safe parts of the world. Places like Australia, or like North America, or parts of Europe that have materials that can be produced. We cannot over-rely on one area, especially one that isn’t stable.”

Today, the companies and people in power are starting to take action.

Global carmakers from early-stage startups to automobile giants like Volkswagen, Ford, BYD, Toyota, and Tesla are all beginning to lock in supplies of raw materials needed to produce their lithium-ion batteries. Meanwhile, first-world countries are placing more and more strategic importance on controlling and building a shorter, localized supply chain of battery minerals.

Look at the U.S and Canada as examples.

The governments of both countries have placed several minerals deemed essential to the growth of the battery metals as critical and are working together to develop and implement a critical minerals strategy.

At the end of September, President Trump even put into effect an Executive Order requiring the Secretary of the Interior to identify critical minerals and making it policy to reduce US vulnerability around critical mineral supply disruptions.

“A strong America cannot be dependent on imports from foreign adversaries for the critical minerals that are increasingly necessary to maintain our economic and military strength in the 21st century,” he said at the time.

This, Smith tells us, is exactly where Global Energy is positioning itself.

“We are true believers in electrification, and we think that it's one of the biggest investment opportunities of the generation. We want to be here to be a part of that in the biggest way possible, and to be able to maximize that exposure. Our focus is on the supply chain for battery metals like cobalt, nickel, and copper because that is really the foundation upon which this path to electrification and new energy storage is based.”

In the past few months, the firm has taken two major steps to maximise its exposure to battery metals and the need for simple and safe supply chains in first-world jurisdiction.

First, in July, the company announced the sale of a portfolio of royalty interests on its Australian cobalt assets to Electric Royalties in exchange for a stake in the business.

In doing so, it retains exposure to the enormous potential on offer at its Millenium Cobalt Project and two neighbouring exploration-stage cobalt assets in Mt.Isa. However, the firm and its investors also gain exposure to Electric Royalties’ strong and diversified energy mineral asset royalty portfolio.

“Electric Royalties has a much wider, diverse portfolio of assets that we also get added benefit from including lithium, vanadium, manganese, and graphite. These will all benefit from the electrification trend, so I think that having that exposure is really important,” Smith tells us.

A map of Global Energy's portfolio of projects around the world

Second, earlier this week, Global Energy announced that it had established a new wholly-owned U.S subsidiary called U.S Battery Metals Corporation.

This gives the company a strong presence in the country at a time when the sourcing of a localized critical battery metals supply chain has become essential to the future of the EV industry and is on the forefront of national, political, and economic agendas.

Global Energy’s first port of call was to place its Lovelock Mine and Treasure Box projects into this new vehicle. The firm recently increased its interest in these two highly prospective, Nevada-based exploration properties to 85% after work confirmed their prospectivity for nickel, copper, and cobalt.

“This increased stake further establishes our very strong footprint in Nevada, which is one of the world's best jurisdictions in which to do mining. It really gives us a chance to build on historic work, and prospective work we have already one to unlock some value through exploration,” adds Smith.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

 

 

Power Metal Resources (LSE:POW) has reported that drilling is moving forward at its hugely prospective Molopo Farms Complex (MFC) project.

The AIM-listed metals explorer is targeting massive nickel sulphide and PGM mineralisation across the Botswana scheme.

Power Metal confirmed that a drill contract has now been signed with Discovery Drilling Contractors. This is the South African outfit instrumental in aiding the discovery of the nearby T3 copper project now owned by mid-tier Australian explorer Sandfire Resources (ASX:SFR).

Discovery has now started moving equipment onto site and drilling is expected to commence imminently. 

Power Metal’s phase one drilling is planned for 2,505m across four diamond core drill holes with target depths ranging from 525m to 710m. 

Earlier this year, the London explorer said that privately-held JV partner Kalahari Key Mineral Exploration Pty Ltd (“KKME”) had selected eight high-priority targets prospective for nickel, with four of the best selected for drill testing. 

Airborne and ground geophysics surveys have already demonstrated that all four show extension and increasing conductivity at depth, which implies that large nickel mineralisation is present. 

Power Metal has an 18.26% stake in KKME. It will earn-in a 40% direct interest in Molopo Farms by electing to spend US$500,000 (£371,025) on the drill campaign this year. 

All of this spending is already fully funded from a £700,000 December 2019 fundraise at 0.4p, and Power Metal has established a dedicated US dollar account for the earn-in drill costs. 

On completion, Power Metal will own a 50.96% economic interest in the project.

Investors are salivating at the prospect of what could be a set of monster results from Molopo Farms.  Power Metal shares surged to a two-year high of 1.43p in early September 2020. 

The complex as a whole straddles the southern border of Botswana and South Africa, and lies within the same province as Bushveld, which contains the world’s largest reserves of PGMs. 

Exploding mineral wealth discoveries across Botswana have driven hefty economic development in recent years, with the jurisdiction now marked as one of the safest in Africa. 

Chief executive Paul Johnson told the market in an RNS: “Maiden exploration drilling at the Molopo Farms Complex Project is a major event for Power Metal. Not least because our partners are targeting not just a possible large-scale metal opportunity, but a district scale opportunity.”

Nickel prices continue to rise as Covid has hit supplies worldwide, with inventories dwindling across the board. At the same time, demand is increasing for the valuable metal, as it has become a key component in building batteries for electric vehicles. 

Johnson added: “The build up to any exploration drill programme is a monumental affair for any junior exploration company. The Power Metal approach is one of relentless drive in the search for potential new large-scale metal discoveries.” 

“In part this is because we want to be proven right in our decision making,” the chief executive admitted, adding, “however we also seek the share price appreciation that comes with a major metal discovery.”

The Power Metal board owns 14% of company stock. This includes Chairman Andrew Bell of Red Rock Resources, with whom Power Metal have a JV for expansive exploration in the renewed goldrush district of Victoria, Australia. 

Author: Mark Sheridan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

This week saw Forum Energy Metals (TSX.V:FMC) up the ante in Saskatchewan by taking full ownership of the highly prospective Janice Lake copper project.

On Monday, the Canadian explorer revealed that it had reached an agreement with the property’s former owner Transition Metals to accelerate its option to acquire a 100% position. The move comes two years ahead of schedule and waves $150,000 of scheduled option payments.

Janice Lake has become an increasingly exciting opportunity over the past year and a half thanks to millions of dollars’ worth of drilling and exploration by Rio Tinto. Rio first entered a US$30 million option to take an 80% stake in the project in May 2019 after a successful first-pass drilling campaign by Forum encountered strong copper grades along a 6km trend.

At the end of September, the major miner completed its summer exploration program at Janice Lake. This included 25 holes for 818 metres on seven targets located on historical copper showings and structural and geophysical targets identified on the property. Meanwhile, mapping and sampling crews took 525 outcrop samples over the full 52-kilometre extent of Janice Lake as well as completing some 30 kilometres of surveying across two targets called Jansem and Rafuse.

Rio is now interpreting its work through ongoing assaying and geochemical analysis with results expected to help refine future drill targets for a planned drilling program in 2021.

The age and depositional environment at Janice is similar to the giant Udokan Deposits of the Lake Baikal region in Siberia, and the Revette deposits of Montana. Baikal Mining Company reports JORC-compliant Measured and Indicated resources of 1.822 billion tonnes grading 1.01% copper, 14.3 grams per tonne silver for the Udokan deposits.

“Immediate 100% ownership by Forum is an important step forward for the advancement of the Janice Lake project as Rio Tinto explores the property under its option,” said Forum’s president and CEO Rick Mazur on Monday.

Janice Lake isn’t Forum’s only quality project in Saskatchewan.

It also owns the Fir Island property in the region, where drilling earlier this year confirmed the continuity of a target structure showing signs of uranium mineralization. The work was funded by Orano Canada, which has entered an option to acquire 70% of the project in exchange US$6 million of exploration spend. Forum has now proposed a much more extensive drilling campaign at Fir Island to build on its exciting results.

Meanwhile, the company also owns the Love Lake project in north-east Saskatchewan, where work recently identified two target areas prospective for magmatic nickel-copper-palladium-platinum deposits.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Shares in Ariana Resources (LSE:AAU) flew 10% higher on Tuesday 29 September as it announced plans for a special dividend.

Investors will be rewarded once the AIM-listed European gold-silver explorer completes its joint venture with Turkish construction firm Özaltin Holding A.S.

Özaltin is due to pay $30 million as part of the JV process, which includes acquiring 53% of Ariana’s Salinbas project, along with 53% of the Zenit Madencilik JV, currently owned by Ariana in a 50% JV with Ankara-based engineering company Proccea Construction.  

Ariana said its investors will likely receive a special dividend made up of 50% of net proceeds after tax and costs. 

Managing director Dr Kerim Sener added that Proccea would pay Ariana $5.75 million in cash to acquire its 23.5% stake in Salinbas, and would remain actively involved in developing the project. 

Salinbas covers three license areas in the multi-million-ounce Artvin goldfield in northeastern Turkey. 

With shares now climbing above 6.2p that gives Ariana a market cap of over £65 million, £30 million higher than three months ago.  

Ariana shares hit an eight-year high back in April when the explorer announced that Q1 2020 gold production had exceeded guidance by nearly 15% to reach 5,419 ounces at its Kiziltepe mine in west Turkey.

Ariana has a 50% stake in Kiziltepe through its shareholding in domestic firm Zenit Madencilik San. ve Tic. A.S and the mine has been in operation since 2009.

Author: Mark Sheridan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

Shares in Ariana Resources (LSE:AAU) flew 10% higher on Tuesday 29 September as it announced plans for a special dividend.

Investors will be rewarded once the AIM-listed European gold-silver explorer completes its joint venture with Turkish construction firm Özaltin Holding A.S.

Özaltin is due to pay $30 million as part of the JV process, which includes acquiring 53% of Ariana’s Salinbas project, along with 53% of the Zenit Madencilik JV, currently owned by Ariana in a 50% JV with Ankara-based engineering company Proccea Construction.  

Ariana said its investors will likely receive a special dividend made up of 50% of net proceeds after tax and costs. 

Managing director Dr Kerim Sener added that Proccea would pay Ariana $5.75 million in cash to acquire its 23.5% stake in Salinbas, and would remain actively involved in developing the project. 

Salinbas covers three license areas in the multi-million-ounce Artvin goldfield in northeastern Turkey. 

With shares now climbing above 6.2p that gives Ariana a market cap of over £65 million, £30 million higher than three months ago.  

Ariana shares hit an eight-year high back in April when the explorer announced that Q1 2020 gold production had exceeded guidance by nearly 15% to reach 5,419 ounces at its Kiziltepe mine in west Turkey.

Ariana has a 50% stake in Kiziltepe through its shareholding in domestic firm Zenit Madencilik San. ve Tic. A.S and the mine has been in operation since 2009.

Author: Mark Sheridan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

Power Metal Resources (LSE:POW) continued its strong run of news on Wednesday with an exploration update from its silver project in British Columbia.

The firm, which has risen by more than 200% this year to above 1p, said it has successfully completed a due diligence programme over the Silver Peak project in British Columbia.

A total of 11 channel samples have been taken from exposed veins and open stopes at the Victoria section of the property’s historic Eureka-Victoria silver mine and submitted for assay testing.

Power Metal announced a 30-day option agreement for the Silver Peak mineral claims, which reside over a system of high-grade silver, lead, zinc, copper veins, last month.

If it exercises its option, it will secure a 30% interest in the property.

The company believes the property’s vein systems could boast a great deal of resource potential.

This is because they have never been formally assessed or drill tested at depth or along strike using modern mining.

Instead, the area’s long history of high-grade, surface silver mining in the late 19th and early 20th centuries was limited to the surface as a result of technical restrictions of the time.

As part of its initial work, which cost around £14,500, Power Metal also completed “enhancement of road accessibility” to the exploration area and collated detailed photographic and video evidence of the project area.

The firm’s technical team will now review its findings and subsequent assay results before deciding whether to pursue the project further.

Chief executive Paul Johnson said: "We are pleased to report the completion of the sampling work on the Victoria vein, one of two main veins located at the Silver Peak Project in British Columbia, Canada.

“The exploration work focussed on representative sampling of vein exposures located in the cliffs and workings situated vertically above the Victoria adit of the Eureka-Victoria Silver Mine.  The work was conducted by contract geologist and technicians in challenging conditions and was documented by photographs, video and drone footage. A selection of these images and videos are being made available on the Power Metal website."

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Kavango Resources (LSE:KAV) was trading at 2020 highs on Tuesday after confirming "spectacular" geological similarities between its vast land package in Botswana and the giant Norilsk mining centre in Russia.

Over the past few months, Kavango has been building a 3D model for the 450km-long Kalahari Suture Zone ("KSZ") magnetic anomaly, where it is targeting world-class mineral deposits. The area is entirely covered by Cretaceous and post-Cretaceous Kalahari sediments and has never been explored using modern techniques.

Kavango secured thousands of data points from its own extensive aerial surveying and 2019 drill campaign, as well as from third-party historical exploration drilling and water boreholes, to build a comprehensive picture of the region’s prospectivity. On Tuesday, the company rocketed to 2.7p a share after confirming its 3D model had established critical similarities between the KSZ's northern "Hukuntsi" section and Norilsk.

Based in Siberia, Norilsk is one of the world's biggest mining centres, accounting for 90% of Russia's nickel reserves, 55% of its copper, and virtually all of its platinum group metals ("PGMs").

Specifically, Kavango's model depicts ten district-scale horizontal "sills" at Hukunsti covering over 300km2. Sills are relatively thin, planar, bodies of coarse-grained rock known as "solidified gabbroic magma" that intruded into layers of sedimentary rock while still molten during volcanic activity about 150 million years ago.

According to Kavango, these sills display dozens of "gull wing" and "keel" formations that are characteristic of those containing metal-rich massive sulphides at Norilsk. Two examples can be seen in the images below.

Cross section A-B from Hukunsti, KSZ

Cross section C-D from Hukunsti, KSZ

The similarities between these formations and the Norilsk schematic below are extremely striking.

As can be seen in the Norilsk schematic below, the copper, nickel, and PGM content in the upper "gull wings" is low. Much of this metal combines with free sulphur and gravitates down as a heavy sulphide liquid into the lower "keel" sector of the sill – which can then act as a trap zone or “bowl” for massive sulphide accumulations.

Kavango said the results of its 3D modelling have strengthened its belief in the KSZ's potential to host "very significant" copper, nickel, and PGM mineralization across multiple magmatic sulphide deposits.

For a more detailed look into the KSZ's Norilsk-style geological potential, click here to view a short presentation by Kavango's chief geologist Mike Moles.

Tuesday's news comes just weeks after an updated petrology report for the KSZ prepared by Dr Martin Prendergast confirmed exceptionally high sulphur readings in core samples taken by Kavango last year.

This was an important step forward as the presence of such high readings of sulphur confirms that the copper, nickel, and PGM elements in the magma bound together to form heavy sulphides.

Meanwhile, earlier this year, a mineral systems review over the formation demonstrated the presence of 12 key geological features associated with other world-class magmatic sulphide copper, nickel, and PGM deposits.

Kavango's chief executive Michael Foster added:

"The imagery coming out of the computer-generated geological model is quite spectacular and potentially transformational for the company. We are now able to view the gabbroic intrusions in 3D. We can see their shape, size thickness and their depth from surface. We can clearly identify and locate the thicker parts of the sills for follow up EM surveying.

This is a major step forward in our exploration, which should culminate in an extensive drilling programme in the KSZ."

With most of the sills lying within 400m of the surface at Hukunsti, Kavango is now primed for further field exploration.

The company's geologists will select six of the most prospective "keels" for large loop, low-frequency electromagnetic surveying. This will test for massive sulphide concentrations more definitively, as the structures are known to be highly conductive.

"[We] expect this work to result in the identification of high-priority targets for future drilling," the firm added.

Overall, this has been a highly encouraging summer for Kavango as it has advanced its exploration theory in the KSZ. The potential targets are huge, and it is now a question of finding them.

This really is elephant hunting of the highest order.

With a £5 million market cap, the potential upside here is immense.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Monday saw Red Rock Resources (LSE:RRR) add an option over former gold and silver mining and exploration assets in eastern Slovakia to its global project portfolio.

Red Rock has already paid vendor Mr Lubomir Konkil and his associated parties €10,000 for a due diligence period ending 21 September 2020 over the assets.

The firm has also paid €23,000 for a 50% stake in the Zlata Bana licence, which covers around 12km2.

Like many porphyries and other gold deposits in Eastern Europe, Zlata Bana has not undergone systematic modern exploration despite historical success.

Red Rock's chairman Andrew Bell said that this presents the company with an opportunity to create considerable value with a shortened path to production:

"This is an exciting potential addition to Red Rock's silver/gold pipeline and balances the portfolio in terms of risk and geographic spread.

We consider that applying modern geochemical and geophysical techniques to this historic asset will open up new exploration possibilities."

Should Red Rock exercise its option, then it would acquire a 50% interest in land and buildings, vehicles, mining equipment, a permit over a mineral stockpile, and mining information and data.

In exchange for this, the company would establish a joint venture with Konkil and issue €250,000 of new Red Rock shares to the vendor alongside a further €100,000 of shares upon completion of the asset transfer.

It would also be responsible for a portion of the joint venture's expenditures, a sum that is expected to amount to "not less than €100,000" in 2020.

Monday's development follows the news at the end of August that Red Rock has secured the long-awaited renewal of its licence areas covering the Mikei and Macalder gold projects in south-west Kenya.

The projects were 75% beneficially owned by Red Rock until a renegotiation with its partners in 2018 that will see ownership interest rise to 100%. They cover 245km2 in the under-explored Migori gold belt near Barrick's North Mara gold operations in Tanzania.

Migori's greater Mikei area already boasts a 1.2Moz JORC gold resource, while tailings on the property from the Macalder VMS present another 68,000 ounces of the precious metal ready for early production. The latter are in the most valuable Measured category.

The projects offer a great deal of upside potential, with a key component of Red Rock's regional activities focusing on identifying new potentially economic areas of mineralization and expanding the project's existing resource base.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

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MiningMaven Ltd, the owner of MiningMaven.com, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

  1. Power Metal eyes huge nickel drill results in Botswana (POW)
  2. Red Rock Resources secures transformational licence renewal for 1.2Moz African gold project (RRR)
  3. Horizonte Minerals leaps to 2020 highs as it delivers maiden sustainability report (HZM)
  4. Horizonte Minerals soars after revealing US$325m financing package for Araguaia nickel project (HZM)
  5. Kavango jumps on fresh evidence of major Norilsk-style deposits in Botswana
  6. Thor Mining flies as Pilbara work continues to show strong visible gold (THR)
  7. Kavango Resources – On the road to another Norilsk in Botswana? (KAV)
  8. Power Metal Resources to push on “innovatively and aggressively” following recent placing (POW)
  9. Strong vanadium, uranium results boost Thor Mining (THR)
  10. Power Metal Resources pushes forward at Kisinka copper-cobalt project (POW)
  11. ECR Minerals – right at the heart of Australia’s second gold rush (ECR)
  12. Ariana Resources secures landmark deal for Turkish gold assets (AAU)
  13. Thor Mining due diligence reveals strong uranium and vanadium showings at Colorado assets (THR)
  14. Thor Mining due diligence reveals strong uranium and vanadium showing at Colorado assets (THR)
  15. Ariana Resources renews Ivrindi gold project licence in Turkey (AAU)
  16. Ariana Resources shines with 50% resource upgrade at Tavsan (AAU)
  17. Power Metal and Red Rock JV to double Australian gold footprint (POW, RRR)
  18. Thor Mining boosts US position with uranium and vanadium project purchases (THR)
  19. Forum Energy Metals reports encouraging Fir Island uranium, will expand Canada operation (FMC)
  20. Horizonte in strong cash position with lockdown end in sight (HZM)

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