Guest article by David Price, CEO of Rockfire Resources
Evaluating a mining exploration stock requires some level of knowledge of the terminology used within the sector and the ability to review and understand assay results.
Assaying is the process of determining the quantity of each element within an individual sample, which is representative of a prospect or an ore body. Assaying is usually performed by independent, commercial laboratories, however, some active mine sites will have their own assaying laboratory at the mine to minimise on-going costs of many hundreds of thousands of assays.
The term “prospect” is generally used to describe mineral occurrences and early-stage exploration targets. The term “Project” normally refers to a prospect which has been defined to the point that it is justified for significant funds to be allocated to the prospect and the Prospect becomes a Project. An ore body is a specific term used only when the economic parameters of potential mining have been taken into account. In other words, an orebody has to demonstrate potential to become economic at some point in the future. Without the economic component, mineral accumulations should only be referred to as prospects or projects.
There are numerous factors that combine to determine whether a mineralisation discovery is worth developing. Generally, how easy it is to mine (mining method), the size of the find (tonnage), the ease of extraction (processing), and the concentration of the minerals (grade) are the main considerations. Proximity to existing processing facilities naturally increases the odds of a discovery becoming economic, and a site having such operations nearby is often referred to as having ‘nearology’.
Near-surface deposits are cheaper to extract via open pit mining, as long as the orebody is large enough to be mined in bulk. Generally, open pit mines are no more than 300 metres deep and are several hundred metres wide. Open pit mines can be used in hard rock mining for ores such as metal ores, copper, gold, iron, aluminium, as well as coal mining and many other minerals.
As you might expect, the costs associated with underground mining are considerably higher owing to many factors including additional safety requirements, potentially harder rock, necessity for ventilation, escapeways and water/power provision at depth. As a comparison, if the cost of mining ore at an open pit mine is approximately $10 per tonne, an underground mine may cost around $25-$50 per tonne. The actual cost will vary from one project to another and factors such as rainfall, labour rates, snow depth, ground conditions, terrain, weathering of the rock, altitude, accessibility and fracture density in the rock will all contribute to variation in mining costs.
Does it make the grade?
Once a discovery is made, its economic viability needs to be assessed. Assuming the depth and size of the deposit make it attractive for development, the next thing to consider is its mineralisation grade. This is the proportion of target minerals within the rock and is usually expressed either as grams of target minerals per tonne of rock to be mined (g/t) in the case of precious metals (gold and silver), or a percentage (%) of target minerals within the ore in most other cases.
Analysis of gold content is generally performed by Fire Assay (FA). Each sample submitted by the company is firstly dried, crushed (to -5mm), then pulverized (to -80 micrometers) to create an homogenous sample. A sub-sample is then taken by the laboratory (either 30g or 50g) and generally, the larger the sub-sample, the more statistically accurate the result is likely to be.
A flux and lead bead is then added to the pulverized sub-sample and the sample is put into a furnace to be smelted to a liquid. The gold preferentially adheres to the lead, so as cooling occurs, the lead and gold separate out from the rest of the sample. The lead is ultimately absorbed into the crucible, leaving a small gold ball (prill) in the bottom of the crucible. This gold prill is then analysed using either Inductively Coupled Plasma (ICP) or Atomic Absorption Spectrometry (AAS), which are both spectrometry techniques to determine absolute gold values.
From the assay results, exploration companies generally calculate the average grade across a deposit and apply what’s called the ‘cut-off grade’ – a minimum grade determined from possible economic parameters for the deposit. Grades beneath the cut-off grade are usually excluded from the data when calculating average grades. Similarly, high-grade cuts are usually statistical high anomalies which are excluded from the data when calculating average grades, to ensure anomalously high grades are not likely to contribute to an over-estimation of the average grade.
When reviewing grades, it is important to note the sample size. The more drill holes intersecting the orebody, the more reliable the data. It is also most important to note the individual sample size which is submitted to the laboratory. Sample sizes will vary from a 50g split to a 5kg sample. The larger the sample contributing to the preparation for fire assay, the more statistically accurate the sample is likely to be. For example, Rockfire Resources instructs the laboratory to crush and pulverises an entire 5kg sample which has been submitted to the lab, prior to a 50g sub-sample being taken by the laboratory for fire assay. This larger, homogenous sample increases the cost of each individual assay, but ensures the most statistically accurate sample is analysed.
Grades can vary quite significantly, with the highest grades frequently grabbing the headlines, but larger tonnages and higher average grades are the best indicators of a potential resource. Assay results are often mapped out in order to pinpoint likely targets for future drilling campaigns.
Author: David Price
Many thanks to David for this guest article. David is Chief Executive Officer and Managing Director of Rockfire Resources plc. David is an experienced geologist and senior executive with +30 years of experience in the global mining industry and has over 20 years’ experience in securing funding for exploration projects. David holds the highest category of membership as a Fellow of the Australasian Institute of Mining and Metallurgy (FAusIMM) and is a Competent Person for Mineral Exploration under the guidelines of the JORC Code. Rockfire Resources is advancing gold and copper projects in Queensland Australia, where historical drilling has already identified significant gold, copper and silver mineralization.
African Battery Metals (LSE:ABM) jumped 11.1pc to 0.5p on Thursday after returning from the first stage of its strategic and operational review with a ‘robust financial position’.
The exploration player was suspended from trading in December as demands from short-term creditors exceeded available working capital. However, it was re-admitted to the market last month days after shareholders voted in favour of a host of proposals aimed and restructuring the business. This included a conditional placing and subscription to raise £1m at 0.5p a share and help pay off creditors.
In Wednesday’s update, African Battery said it has now paid all material creditor balances through either cash or share settlements. It now has no material debt and free working capital of around £860,000. It believes this figure will cover corporate plc costs, anticipated project exploration, and expenditure on existing interests for 12 months.
News of this the financial progress came alongside the initial results of a strategic and operation review under African Battery’s new managers Paul Johnson and Andrew Bell. The pair, both well-known figures in the AIM community after holding numerous senior roles at mining firms, replaced the company’s former management team following last month’s vote.
As well as joining the African Battery’s board, both Bell and Johnson each subscribed to £50,000 worth of shares in its placing. On top of this, Red Rock – where Bell is CEO and chairman, subscribed to an additional £100,000 in shares.
Discussing the firm’s restructured cash position on Wednesday, Johnson said: ‘Since the December 2018 suspension and with the support and assistance of existing shareholders, new investors, Company advisors, Company management and, importantly, the AIM exchange itself, ABM is now in a robust financial position and able to take the steps it needs to drive its business forward and potentially flourish.’
To support this potential, Johnson and Bell have begun to assess African Battery’s business administration and management as part of their review. On Wednesday, the firm said that its priority focus is now on completing its audited financial statements for the year ended 30 September 2018. These are due on 29 March 2019 and will be followed by an AGM to discuss progress with shareholders.
Elsewhere, management has been reviewing African Battery’s existing project interests to identify the most optimal way of progressing exploration and related costs. The work is being led by Bell, who is currently visiting the DRC to review the company’s assets and capabilities in the country as well as exploration options for its Kisinka copper-cobalt project.
Moving forward, African Battery’s executive team intends to review the organisation’s operational interests in Cameroon and the Ivory Coast as well as the DRC over coming weeks. It plans to communicate its findings through individual market updates. It added that the allocation of project management and exploration spend will be focused on projects with the highest potential impact per exploration dollar.
Although the company plans to stay broadly in line with its previous management’s exploration strategy, it said its approach might differ and build on knowledge acquired from previous work.
Elsewhere, Bell and Johnson have been identifying and review appropriate new acquisition opportunities for the outfit. The firm said the funding climate for early-stage resource opportunities is still very poor, meaning vendors are willing to undertake transactions on reasonable.
Through its network, it said it has already received direct approaches from third parties with new opportunities in battery metals, precious metals and other commodity groups. It is now reviewing a range of possible options. However, it will only proceed if a new asset is sufficiently attractive, complements and strengthens existing interests, and does not place undue pressure on cash requirements.
Finally, African Battery said that it intends to remain focused on Africa and battery metals for the ‘foreseeable future’. However, it is also considering investment opportunities that can bolster its financial strength and give it exposure to strategically attractive areas for future business development.
‘Any recovery scenario should look to focus on existing interests first, extracting the best opportunities and building from that core. We are doing just that,’ added Johnson. ‘It is our intention to report our progress regularly to the market, providing individual project updates to enable investors and shareholders to have a clear understanding of each Company project in respect of its current status, our operational plans and our project level objectives.
‘I would like to thank all the parties who have assisted with the initial recovery of the Company. And I assure you the ABM team are working very hard to secure to build a sustainable recovery over the coming weeks and months.’
Author: Daniel Flynn
The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The article expresses the views of the Author solely and does not necessarily express the views of MiningMaven.com and Catalyst Information Services Ltd or their connected parties who are not responsible for its content or accuracy
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. Readers are recommended to seek the advice of appropriate professionals when considering investments in small capital.
Shares in Oriole Resources (LSE:ORR) advanced 1.4pc to 0.36p on Wednesday after the business announced ‘very encouraging’ high-grade anomalies at its assets in Cameroon.
In an exploration update for the Bibemi asset, where it is earning up to a 90pc interest, Oriole said the first phase of a trenching programme has confirmed multiple zones of gold mineralisation. This includes 6m at 3.02 g/t gold with individual veins returning up to 13.7 g/t.
The trenching programme is now complete, with the remaining results anticipated later this quarter or in early Q2 2019. The work followed the news last November that rock-chip sampling results for Bibembi had demonstrated ‘bonanza’ high-grade gold anomalism extending over the c.4km strike. A phase two trench programme will now begin for a planned 4,360m.
Elsewhere on Wednesday, Oriole said it has also completed soil sampling at the earlier stage Wapouze project, where it is also earning up to a 90pc stake. Results for 2,119 soil samples and 146 rock samples are expected later this month.
Oriole entered a conditional option agreement with established Cameroonian outfit BEIG3 in June last year for Bibemi and Wapouzé. The assets cover the highly prospective Neoproterozoic Pan-African greenstone belts in the north-east of the country.
The two-part agreement gives Oriole the right to earn up to a 90pc interest in the projects and take over their management. For an initial 51pc stake, the firm must fund $1.56m of exploration over two years, with a minimum commitment of $560,000 in the first year. It can then earn up to a further 39pc in exchange for another $1.56m exploration payment.
Earlier this year, Oriole said it would invest a portion of its £500,000 rebate from the UK tax office into the projects.
In Wednesday’s update, the company’s chief executive Tim Livesey said: ‘These results from our first phase of trenching at Bibemi are very encouraging and, together with the Phase 2 infill trenching, will assist us in both gaining a better understanding of the mineralised system and progressing towards a drill decision later in the year.
‘Though the higher-grading intercepts may appear at first glance to be rather sporadic, they do follow the previously mapped trends and confirm our early model of shear-related vein mineralisation. When one considers the scale of the area and the average 200m-spacing between trenches, the results to date suggest the presence of multiple mineralised ore shoots within what is a major 600m-wide structural corridor.’
He added that there remains work to do to under the controls on mineralisation in such a complex structural environment properly.
‘Remembering that the individual ore shoots in many of the world’s biggest mines exploiting this kind of orogenic gold deposit have strike lengths of around 200-400m, our immediate task now is to target the higher-grade sections with the intention of defining specific ore shoots and the geological factors controlling their localisation,’ he added.
Author: Daniel Flynn
The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The Author has not been paid to produce this piece by the company or companies mentioned above
Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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
Thor Mining (LSE:THR) jumped 8.9pc to 1.15p on Tuesday after announcing plans to spin off its interest in the Kapunda copper project into a new business.
The firm, which was down 6.5pc on Wednesday, has signed a memorandum of understanding (MOU) to transfer its interests in the Adelaide-based project into Enviro Copper. This new vehicle will then hold earn-in rights up to 75pc in Kapunda as well as another asset called the Moonta copper project.
In exchange for transferring its stake, Thor can hold up to a 30pc position in Enviro before any listing activities. Thor shareholders, meanwhile, will hold the first option to invest in any listing that Enviro decides to seek on a recognised securities exchange.
Kapunda hosts an in-situ recovery (ISR) amenable inferred mineral resource estimate of 119,000ts of contained copper.
Thor holds its interest in the product through a private Australian company called Environmental Copper Recovery (ECR). Thor announced an agreement to earn up to 60pc in ECR last August in exchange for convertible loans worth up to $1.8m. ECR holds an agreement to earn, in two stages, up to 75pc of the rights over metals that may be recovered in the Kapunda deposit from ASX-listed miner Terramin.
Under the Enviro MOU, Thor will relinquish its interest in ECR and buy a 25pc, pre-listing, interest in Enviro for A$0.6m. It will also hold the right to acquire a further 5pc seed capital interest in the vehicle for $0.4m.
Moonta, meanwhile, is also based in Adelaide, where it sits within the historical ‘copper triangle’ of South Australia. Here, around 300,000ts of copper was mined and processed from the 1860s until the 1920s. Although it is less advanced than the Kapunda target, it contains an ISR amenable exploration target of between 238Mt and 310Mt at a grade range of 0.18pc-0.23pc copper. The asset is 75pc owned by a business called Environmental Metals Recovery, subject to due diligence.
In Tuesday’s update, Thor said the new combined entity would provide a strategic opportunity to build a substantial ISR-focused copper exploration, development, and production business with an initial focus on Australia. It said a key strategic target would be the ‘timely development’ of Kapunda into production, which would demonstrate the viability of ISR. This model would then be applied to the larger scale Moonta project.
Beyond its two initial interests, Enviro will aim to develop an expanded portfolio of ISR copper opportunities. Thor’s executive chairman Mick Billing added that Enviro could add ‘significant scale’ to the firm’s copper interests by bringing in exposure to Moonta.
‘While Kapunda is comparatively more advanced, the Moonta project, albeit at an earlier stage, provides potential for a much larger, and longer-term copper production entity,’ he said. The opportunity for eligible Thor Mining shareholders to have a priority investment opportunity in the new vehicle is seen as a core ingredient in the establishment and listing of this new entity.
‘Also, through their shareholding in Thor Mining plc, shareholders we be able to see the demonstrable value of our interest in Enviro Copper and that value will be in our financial accounts as a tradable market valued asset, rather than as merely a project within the Company. Shareholders should expect a range of additional market updates in the near term in respect of the developments at Enviro Copper, and as we take steps forward at Molyhil and Pilot Mountain.’
Author: Daniel Flynn
The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The Author has not been paid to produce this piece by the company or companies mentioned above.
Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.
Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its content or accuracy. 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.
Ironridge Resources (LSE:IRR) dropped 2.5pc to 19p on Tuesday despite announcing multiple new high-grade lithium intersections at two of its site in Ghana. The firm has now received all the assay results for a 4,684m second-phase RC programme carried out at its flagship Ewoyaa project and new Abonko discovery in the West African nation.
The latest round of results from drilling December showed good continuity of mineralisation along infill sections at Ewoyaa, with high-grade lithium pegmatite intersections. Highlights included 80m at 1.52pc lithium dioxide from surface including 22m at 1.76pc lithium dioxide from 52m ad 68m at 1.31pc lithium dioxide from 45m including 10m at 1.8pc lithium dioxide from 64m.
The drilling programme was designed to test strike extensions and newly-defined pegmatite zones at Ewoyaa and Abonko as well as completing infilling resource drilling along two sections at Ewoyaa.
Metallurgical sampling has now been completed, with sampled being sent to Nagrom in Perth for preliminary metallurgical test-work. Meanwhile, regional pitting around Ewoyaa-Abonka pegmatite clusters is ongoing, with new pegmatites and extensions continuing to be discovered.
Vincent Mascolo, chief executive and managing director of IronRidge, said: ‘Drilling results continue to confirm that Ewoyaa is a significant discovery, which is high-grade and spodumene dominant; the preferred feedstock for end users.
‘Located within 100km trucking distance of an operating deep-sea port and within 1km of a bitumen highway, Ewoyaa is well positioned to benefit from existing infrastructure. In addition, the project is situated in the favourable, pro-mining jurisdiction of Ghana, which is ideal for the future development of the Cape Coast Lithium Portfolio.
‘Confirmation of grade and continuity of mineralisation between 50m spaced cross-sections within the Central Zone of the main Ewoyaa deposit is very positive and bodes well for future resource estimation, as well as simplicity of mine design and process flow-sheet.
‘Ongoing mineralisation discovery within the immediate project area, including new pegmatites at Ewoyaa and Abonko and step out drilling extending the known high-grade mineralisation at Ewoyaa an additional 250m of strike is highly encouraging.
‘The recently discovered high-grade spodumene dominant pegmatites at Abonko, and around Ewoyaa, is significant as it adds further resource scale potential. Field teams have finalised metallurgical sampling, with 427kg of diamond drill core being dispatched to Nagrom laboratory in Perth for preliminary metallurgical test-work with initial results expected in the coming months.
‘Concurrently, field teams are continuing regional pitting programmes around the Ewoyaa-Abonko pegmatite cluster which continues to deliver new pegmatite discoveries for future drill testing, as well as successfully completing a Ground Penetrating Radar ('GPR') survey to target pegmatites at depth.’
Author: Daniel Flynn
The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The Author has not been paid to produce this piece by the company or companies mentioned above
Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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
Condor Gold (LSE:CNR) bounced 7.2pc to 23.6p on Tuesday morning after revealing that it has started permitting for two feeder pits at its La India project in Nicaragua. The gold exploration and development business said America and Mestiza could increase open pit production at the asset by 50pc to 120,000oz of gold p.a. for seven years.
The pits have, in aggregate, 206,000ts containing 66,0000oz gold in the indicated category and 152,000oz contained gold in the inferred category. They are located between 2-4km from the location of the processing plant for the La India open pit. This has now been permitted with a processing capacity of 2,800ts a day.
In Tuesday’s update, the firm said it has received the terms of reference to produce an environmental impact assessment for the pit from the Ministry of Environment and Natural Resources (MARENA). This supports the granting of an environmental permit for the development and extraction of contained gold at both sites. The granting comes after MARENA, together with the Ministry of Energy and Mines and Ministry of Forestry, has conducted a site visit inspection of the proposed layout of the pits, waste dumps, and infrastructure.
Tuesday’s development comes after several weeks after Condor announced an updated mineral resource estimate for La India, where it owns a 100pc position. This gave the project a mineral resource estimate of 9.85Mts at 3.6g/t gold for 1.14MMoz gold in the indicated and 8.48Mts at 4.3 g/t gold for 1.179oz in the inferred category.
On Tuesday, Condor said that permitting additional high-grade open pit material at America and Mestiza would help to boost these figures and extend La India’s annual production or its life of mine.
Condor chairman and chief executive officer, Mark Child, added: ‘Permitting the high grade Mestiza and America satellite feeder pits has the potential to increase annual production from open pit material by 50% to 120,000 oz gold p.a. for a seven year life of mine. The feeder pits have in aggregate 206 thousand tonnes ("Kt") at a grade of 9.9 g/t (66,000 oz contained metal) in the Indicated category and 1,018Kt at 4.6 g/t (152,000 oz contained gold in the Inferred category).
‘The feeder pits complement the main, fully permitted La India open pit, which has a robust, economically viable Pre-Feasibility Study ("PFS") with Mineral Reserves of 6.9 million tonnes ("M tonnes" or "Mt") at 3.0 g/t for 675,000 oz gold, which demonstrates annual production of 79,300 oz gold and lower quartile all-in-sustaining cash costs ("AISC") of US$690 per oz gold. The higher grade feeder pits have the potential to materially enhance the Project economics.’
Author: Daniel Flynn
The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The Author has not been paid to produce this piece by the company or companies mentioned above
Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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
Emmerson (LSE:EML) soared 16.1pc to 3.6p on Monday morning after announcing that it could significantly cut the capex requirements of its Khemisset potash project by using a different port.
The business said it could save $7.5m on the capex costs previously announced in a scoping study for its Morocco-based asset by using storage and loading facilities at the Port of Casablanca. It has previously been looking at using the Port of Mohammedia for the export of potash created at Khemisset.
The change in port would result in a slight increase in transport distance for the product, given the potential use of rail rather than trucks for the majority of the journey. Transport can often be a particularly expensive stage in the creation and delivery of potash due to the produc’s bulk and heaviness.
However, in Monday’s update, Emmerson said indicative mine-to-port logistics cost quotes from the Moroccan National Rail Company show no change in operating costs from Khemisset’s scoping study.
The business added that using Casablanca, a significantly larger port with a more significant draft capacity, would allow the loading of a broader range of vessel sizes. This has the potential to reduce overall bulk shipping costs to target markets like Brazil, it added.
Elsewhere, the company said it remains in discussions with numerous Moroccan entities, included the port authorities. It is looking at further opportunities to improve Khemisset’s economics ahead of upcoming feasibility studies.
The scoping study for Khemisset confirmed that it has the potential to be among the lowest capital cost, highest margin potash projects in the world. Forecast economics include EBITDA margins of more than 60pc and a post-tax NPV10 of over US$1.1bn based on industry expert price forecasts.
Emmerson’s chief executive Hayden Locke said it was ‘pleasing’ to see progress in the firm’s efforts to cut costs at Khemisset.
‘The Port of Casablanca is one of the largest and most modern in Africa and, consequently, it has outstanding infrastructure already in place. Discussions with the Port Authority suggest that we may be able to benefit from this; potentially reducing our capital costs further and having a net positive impact on our overall transport and logistics costs delivered to our target markets, including Brazil.
‘This is a positive development and it will form a key part of our analysis for the Feasibility Study. We are rapidly progressing Khemisset and look forward to keeping shareholders updated as we identify further areas of improvement for the Project during 2019."
Towards the end of last month, the firm hired Don Larmour of Global Potash Solutions to advise on metallurgy and processing at the asset as well as acting as a consultant for the feasibility study. Larmour has already conducted a detailed review of the Khemisset scoping study as part of his hiring process. Through this, he identified opportunities for the simplification and optimisation of the project’s design. Emmerson believes these have the potential to reduce capital and operating costs. He also suggested potential changes to Khemisset’s brine management strategy and identified several areas of focus for the next, more detailed design phase to further de-risk the project.
Author: Daniel Flynn
The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The Author has not been paid to produce this piece by the company or companies mentioned above
Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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
In an announcement Thursday, Oriole Resources (LSE:ORR) disclosed that IAMGOLD is about to restart exploration at the Dalafin gold project in Senegal. IAMGOLD is progressing into the second year of its earn-in to the project with a budget of $1m.
Oriole currently owns an 85pc interest in Dalafin and the firm has provided IAMGOLD with an option to earn-in to an initial 51pc interest with a $4m spend over four years progressing the project. IAMGOLD can further extend its interest to 70pc with an additional $4m spend over the following two years.
The exploration programme will continue to focus on Madina Bafé and will include 5,000m of regional aircore (AC) drilling, to extend the previous 2018 campaign and 4,000m reverse circulation (RC) drilling to follow-up on the best results from last years drilling. Then focus will turn to the Saroudia prospect situated 2km away with 2,500m regional AC drilling and RC drilling will follow at the best locations. Oriole expects results will be available towards the end of the second quarter or early in Q3 this year.
The Dalafin Licence
The Dalafin licence is located in the Birimian-age Kédougou-Kenieba gold belt that extends from eastern Senegal into western Mali and has already seen multiple major gold discoveries including Randgold Resources’ Massawa deposit which is estimated to contain 3.4 million ounces of gold. four main geochemical targets, Faré, Baytilaye, Saroudia, and Madina Bafé, have been identified to date.
Oriole Resources CEO, Tim Livesey, said: "We are delighted to announce that IAMGOLD has committed to its year two earn-in on the Dalafin licence following an initial successful drilling programme last year.
The exploration programme outlined will continue to build on the exciting results already delivered at the Madina Bafé prospect with additional drilling planned for the Saroudia prospect to the North-West.
Our partnership with IAMGOLD at Dalafin has already contributed significantly to the increasing value of Oriole's wider portfolio, and we look forward to updating the market on this stage of the drilling programme later on in the year."
Author: Stuart Langelaan
The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The Author has not been paid to produce this piece by the company or companies mentioned above
Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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
Cora Gold (LSE:CORA) released drilling results from its Sanankoro gold discovery on Tuesday. The company said drill results from the Zone A prospect showed ‘good correlation to historical drilling’. Sanankoro is Cora’s flagship project and is situated in the Yanfolila Gold Belt in Southern Mali. The firm believes the project has the potential for a standalone mine development and is in the process of determining the location of higher grade areas with the current drilling campaign. Cora reports that this first set of drilling results suggests a continuation of broad zones of shallow high-grade mineralisation across the Zone A prospect. All holes ended in oxidised material to depths of around 90 metres. The drill results (shown below) include a number of higher-grade areas with top examples of 8m at 3.17g/t Au from 69m and 26m at 2.60 g/t Au from 71m.
Drill Results recorded across Zone A Prospect, including results from Cora’s 2018 drill campaign
Dr Jonathan Forster, Cora's CEO commented:
"These initial results from our latest drill programme are particularly encouraging. The results reported from the Zone A prospect vindicate our strategy of focusing on oxide deposit areas that have the potential to become higher grade starter pits for a future development opportunity. The continuity of the widths, grades and near surface location of the gold mineralisation is potentially indicative of a zone that is in the 'sweet spot' with potential for future economic extraction; in particular given the very deep weathering that has resulted in oxidation to depths of 90m or more."
In October, Cora announced that SRK Consulting had determined an initial Exploration Target of between 30 and 50 million tonnes of gold ore at a grade of between 1.0 and 1.3 g/t Au at Sanankoro. The company believe there is the potential to delineate 1-2 million ounces of gold to a depth of 100m. Last month the firm appointed Wardell Armstrong International (WAI) as independent consultants to undertake a preliminary metallurgical test work programme at Sanankoro in order to assess the amenability for cyanide leach extraction of gold from oxide mineralization at the discovery. A core hole has now been drilled to provide a composite oxide metallurgical sample for the metallurgical test work programme.
Cora is expected to announce drilling results from its nearby Selin prospect over the coming weeks
Author: Stuart Langelaan
The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The Author has not been paid to produce this piece by the company or companies mentioned above.
Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.
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Prairie Mining (LSE:PDZ) declined 7.1pc to 19.5p on Tuesday morning after announcing a six-month extension to discussions around a potential deal on its Polish coal projects. Prairie and major coal miner Jastrzębska Spółka Węglowa (JSW) have signed an agreement to extend the terms of a non-disclosure agreement (NDA) related to a potential co-operation arrangement until 28 September 2019.
The possible link-up was first announced last March and saw Prairie give JSW access to information on its hard coking coal project under the Debiensko-1 concession and its Jan Karski project in the Lublin Coal Basin. JSW has since been conducting an assessment of the feasibility and economics offered by both projects.
This has now completed and has confirmed that Jan Karski’s Lublin deposit contains semi-soft coking coal that it can potentially utilise. JSW’s work has also shown the technical feasibility and potential synergies of accessing initial seams at the Dębieńsko deposit. This would employ existing infrastructure at JSW's adjacent Knurów-Szczygłowice mine and potentially enable the production of hard coking coal within 18 months of permits being granted.
In Tuesday’s update, Prairie said the NDA has been extended for the ‘purposes of continuing discussions’. It added that the firms would discuss a potential deal structure and commercial terms for any co-operation or transaction. They will also look at developing the existing mine plans for both projects to fit in with JSW’s plans.
Jan Karski is a large scale semi-soft coking coal project located in the Lublin Coal Basin in south-east Poland. It is situated adjacent to the Bogdanka coal mine, which has been in commercial production since 1982 and is the lowest cost hard coal producer in Europe. According to Prairie, Jan Karski has the potential to produce a high-value ultra-low ash semi-soft coking coal with a coking coal product split of up to 75pc. Meanwhile, the Debiensko nine is a hard-coking coal project located in the Upper Silesian Coal Basin in the south west of Poland.
Prairie shot up to more than 30p last August after Polish media reported that JSW’s president had told a press conference that Dębieńsko and Jan Karski mines had met its coal quality expectations. Prairie attempted to downplay the speculation, stating:
‘Commercial discussions continue to be at a preliminary stage and that even if they move onto discussions of specific transactions terms there can be no certainty as to whether any transaction(s) will be agreed or the potential form of such transaction(s). The Company expects further exchange of information will continue with JSW.’
The firm added that any transaction will be subject to conditions like obtaining positive evaluations and expert opinions, necessary corporate approvals, consents and approvals related to funding. It also said it may also have to get consent from Poland’s competition authority and meet any other requirements that may relate to the strategy, objectives and regulatory regimes applicable to the respective issuers. These terms were once again referred to in Tuesday’s update.
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.com and Catalyst Information Services Ltd are not responsible for its 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
