Dacian Hits High Grades at Mt Marven
Troubled miner Dacian Gold (DCN) has released drilling results from its initial drilling program along strike from the Mt Marven open pit at its 100%-owned Mt Morgans Gold Operation, located near Laverton in Western Australia.
The newly defined continuation of high-grade mineralisation is currently delineated over a length of approximately 800m beyond the limit of the current open pit design for Mt Marven, and remains open at depth and along strike.
Infill drilling to 40m x 40m spacing to assess the continuity of the structure will commence immediately with Mineral Resource estimate work to follow.
The Mt Marven open pit is situated in the Mt Margaret dome area and is currently in production. As part of a first-pass assessment into the prospectivity of the Mt Marven Shear Zone (MMSZ) south of the active Mt Marven open pit, a total of 44 Reverse Circulation holes were completed on an approximately 80m x 120m drill spacing.
The program was aimed at testing future open pit potential in the vicinity of an existing Ore Reserve. The drilling highlights a strong mineralised trend coincident with the strike of the MMSZ and linking with the active open pit.
This will be good news for Leigh Junk, who was brought in to turn the fortunes of the company around when it hit trouble about 18 months ago.
Gold Road Resources Paves the Way in Gold.
Gold Road (GOR) is still kicking goals with its Gruyere Gold Mine which it shares 50:50 with Gold Fields. The mine approximately 200 kilometres North-East of Laverton produced 55,919 ounces of the precious metal which was in accordance with their guidance.
Average grade for the quarter was 1.03 g/t with a recovery rate of 91.5% which came from 1.9 MT processed ore. AISC was higher for the quarter at A$1,488, but for the year to date sits at $1,276. With average gold sales at A$2300 for the year the mine is a good earner for the companies involved. Production for the year is still expected to be in the range of 250,000 to 270,000 ounces.
Although no exploration work was carried out on the joint venture tenements Gold Road was busy exploring other tenements it has around Gruyere. There are 4,500 kilometres of tenements for Gold Road to explore at the Kingston, Hirono, Savo, Beefwood and Gilmour South sites.
The Gruyere joint venture has 6.6 million ounces in mineral resources with an ore reserve of 3.7 million ounces. With a lot of exploration upside for Gold Road their current plans of 12 years of production will surely be very conservative.
King Island Scheelite Raises A$2.5 Million.
King Island Scheelite Limited (KIS) has received binding commitments for A$2,568,000, in its recent capital raising.
The Placement has been oversubscribed by a range of institutional and sophisticated investors including Director Chris Ellis and other large shareholders, including Elphinstone Holdings Pty Ltd. The Placement will result in the issue of approximately 46.7 million new fully paid ordinary shares at A$0.055 per share, with one free attaching listed option for every two New Shares issued in the Placement.
Funds raised through the Placement will be used to further advance the Company’s 100%‐owned Dolphin Tungsten Mine located on King Island, Australia. KIS is continuing discussions with the Critical Minerals Facilitation Office (“CMFO”) as well as other State agencies regarding support for the redevelopment of the Dolphin Mine, given its strategic and regional economic importance.
King Island Scheelite Executive Chairman, Johann Jacobs, said: “We are delighted to welcome several new institutional investors to support KIS at an exciting stage of the Company’s story. Our strategy has positioned us well to move forward with our plans to redevelop King Island’s Dolphin Tungsten Mine. The capital we raise through this placement will empower us to see the project through to financial close.
“We thank our existing shareholders and incoming investors for their support and look forward to executing the Company’s growth strategy through what we expect will be a highly active FY21.”
TNT Mines Acquires Historic WA Gold Projects.
TNT Mines Limited (TIN) is pleased to announce that it has signed a binding share sale agreement to acquire 100% of Warriedar Mining Pty Ltd, which owns the Eureka Gold Project 50km north of Kalgoorlie in the Western Australian Goldfields and the Warriedar Gold Project in WA’s Murchison region.
Both Eureka and Warriedar have a history of gold production, are located close to established infrastructure including operating gold mills. Eureka, which is under granted Mining Leases will be the initial focus of exploration, containing an existing JORC2012 Indicated and Inferred Mineral Resource of 762,000 tonnes at 1.80 g/t Au for 43,100 ounces of contained gold.1
Further detail on the Eureka and Warriedar assets, the consideration to be paid for the acquisition, capital raising, proposed Board and management changes and next steps is provided below.
TNT Executive Director Brett Mitchell said: “Warriedar stands out as a unique opportunity to acquire two Western Australian gold projects with a history of production that are positioned with immediate access to infrastructure and operating gold plants. This presents a unique opportunity to join forces with a management team that has a very successful track record in the exploration and redevelopment of ex-production gold assets in WA. Given the outstanding value creation they delivered for Spectrum Metals shareholders, Alex and James have developed a strong and loyal following and we are excited by the possibility of recreating their Spectrum success with TNT.”
Aus Tin Mining to Acquire Mackenzie Coal Project in Bowen Basin.
Aus Tin Mining Limited (ANW) has signed a binding Term Sheet with Resources and Energy Investments Pty Ltd (REI) to acquire its interests in the Mackenzie Coal Project located in Queensland’s premier coal province the Bowen Basin. Mackenzie includes a previously announced Indicated and Inferred JORC Resource of 138.1Mt of potential low volatile Pulverised Coal Injection (PCI) quality coal, and is being acquired by REI from the liquidators of previous owner MRV Bowen Basin Coal Pty Ltd. The proposed acquisition of Mackenzie complements the previously announced proposed acquisition of the Ashford Coking Coal Project in NSW.
Mackenzie comprises Mineral Development Licence (MDL 503) and Exploration Permit Coal (EPC 1445) both located approximately 30km north-east of Blackwater in the Bowen Basin which is well serviced by road, rail and port infrastructure at Gladstone. Mackenzie is adjacent to producing coal mines at Jellinbah and Yarrabee with collective coal production of approximately 8.4Mt in 2019, of which the quality is primarily a low volatile PCI for export markets. Mackenzie is also proximate to coal projects subject to notable transactions including Curragh (Wesfarmers sold to Coronado Coal in 2018 for $700M) and MDL162 (Peabody sold to Wesfarmers in 2014 for $70M).