Russell Meares (SEG 1996)

AUSTRALASIA
Regional Correspondent:
Russell Meares (SEG 1996)
Malachite Resources Limited
Sydney, Australia
E-mail: [email protected]
Website: www.malachite.com.au
With contributions from:
Roger Thomson (SEG 1983) – Western Australia
Lucy Chapman (SEG 2000) – Queensland
Tony Christie (SEG 1992) – New Zealand
Andrew McNeill (SEG 2007) – Tasmania
Bianca Pietrass-Wong – NSW
Steve Russell (SEG 2009) – NT
SUMMARY
The news from Down Under in recent months has been all good for the local exploration/mining
industry, with some exciting exploration discoveries reported within a framework of more
positive leadership and support for the industry by the new government. The September federal
election resulted in a massive swing to the pro-business Liberal/National party coalition
1
government, which has commenced the repeal of the previous Labor government’s Mineral
Resource Rent Tax and is working with the state governments to cut red and green tape, and to
reduce duplication and delays in the approval of mining/infrastructure projects.
In addition, Australia now has a government that recognizes the importance of junior
explorers in maintaining a sustainable mining sector by introducing tax benefits for investors in
such companies. The new Exploration Development Incentive scheme will commence on 1 July
2014 and will allow those who invest in junior explorers to deduct the cost of such investments
against their taxable income. The main conditions are that the companies must be explorers with
no taxable income and the funds must be used for greenfields exploration within Australia. The
scheme has an initial cap of A$100M and may be extended.
At the state level, after consultation with industry the Queensland government recently
announced an allocation of A$7.5M over three years for priority geoscience projects to be
conducted by the Geological Survey of Queensland. These include a study of the copper-gold
prospectivity of the northeast Queensland magmatic systems and an EM geophysical survey to
identify deeply buried, base metal-rich black shale basins south of Mt. Isa.
Junior explorers are still struggling to survive in the continuing capital drought, with a
number of companies merging and establishing joint ventures to stay in business. However, there
are signs that the situation is starting to ease with the stock market moving ahead strongly in
recent months, and in this environment a number of new start-up companies are raising capital
and listing on the stock exchange.
Two of the brightest stars in the Australian exploration/mining sky are Western
Australian companies Northern Star Resources and Sirius Resources, which have both
recently proved the old adage “success breeds success.” Both have made recent exciting
2
discoveries, having already established their reputations as stellar explorers/miners.
Coincidentally, both discoveries involve paleoplacer/supergene gold projects, but with quite
different outcomes. Firstly, Northern Star has been a real success story as it progressively adds to
the inventory of high grade gold resources at its Paulsens gold mine in the Ashburton region,
and was recently exploring the prospective regional corridor 100 km southeast of Paulsens.
Targets there included paleochannels considered prospective for gold—but, instead of gold, the
drilling intersected coal in large quantities! Significant intersections of thermal coal (with single
seams up to 65 m thick) were recorded in eight air core holes at the new Kazput project. The
location of this new coalfield is also significant as it lies just 60 km from Rio Tinto’s
Paraburdoo iron ore mining operations in the adjoining Pilbara province.
Secondly, Sirius Resources’ Nova/Bollinger Ni-Cu-Co discoveries in the Fraser Range
have already excited the market, but it is a recent gold discovery at the Nanook prospect at its
Polar Bear project south of Kalgoorlie that is the icing on the cake. Here, shallow drilling
beneath Lake Cowan (a large dry salt lake) has intersected a buried Tertiary paleoplacer deposit
at shallow depth with dimensions of at least 2 km × 700 m × 15 m, with a best hole to date of 13
m at 23.9 g/t Au! Sirius is also exploring the buried basement ridge adjoining the paleoplacer,
which is interpreted to be the hard-rock source of the transported gold.
See the online version for more exciting exploration news from Down Under, including a
significant emerging silver province in South Australia with similarities to the volcanic-hosted
Central and South American silver deposits.
=====================================================================
WESTERN AUSTRALIA
The Western Australian government has introduced a new mining bill to reduce red tape,
improve transparency and encourage investment in the state’s mining and resources industry.
3
Dubbed the Mining Legislation Amendment Bill, it will implement recommendations designed
to reduce costs for business without compromising environmental responsibility. A recent
milestone in the state was the first gold pour from the plus 7Moz Tropicana gold mine
(AngloGold Ashanti and Independence Group). Discovered in 2005, 2006 and 2009
respectively, the Tropicana, Havana and Boston Shaker gold deposits extend over a 5km strike
length with gold mineralisation intersected over a 1km vertical depth from near surface,
emphasising the size of the Tropicana gold system.
On the far NE margin of the Archean Yilgarn Craton, Gold Road Resources has been quietly
exploring a very large landholding of some 5,000sq km covering most of the remote and poorly
exposed Yamarna greenstone belt. The Geological Survey of WA has drawn similarities of age
and character between the Kalgoorlie Terrane (gold endowment >100Mozs) and the Yamarna
Terrane. Gold Road has identified resources of 1Mozs so far and announced recent discoveries
at Gruyere and YAM14 about 9km apart and some 30km east of the structural trend hosting the
existing resources. Gruyere is a structural target with drill intersections of 75m @ 1.4g/t Au
from 20m, and 42m @ 1.6g/t Au from 2m in a felsic intrusive body where plus 1g/t Au grades
have been traced over an 800m strike length with horizontal widths up to 180m. YAM14 is
shear-hosted mineralisation with a supergene overprint, with recent hits of 16m @ 2.1g/t Au
from 48m and 4m @ 7.7g/t Au from 56m.
Just 30km north of Kalgoorlie, Excelsior Gold has established a 100sq km ground holding over
a 25km strike length of the Bardoc Tectonic Zone, where it has identified a multiple- deposit
resource of 1.3Mozs (22Mt @ 1.8g/t Au). Recent drilling of extensions to the Zoroastrian
deposit intersected 11m @ 6.5g/t Au from 233m and 11m @ 3.2g/t Au from 242m.
Further south, market darling Sirius Resources has intersected 13m @ 23.9g/t Au from 44m,
and 18m @ 1.5g/t Au also from 44m, in supergene mineralisation at Nanook about 200km west
of its nickel discovery at Nova-Bollinger. The flat-lying gold mineralisation is associated with
Tertiary quartz gravels in a paleochannel lying beneath transported salt lake sediments of Lake
Cowan, surrounded by the Norseman, St Ives and Higginsville gold camps, an area with a gold
endowment of 25Mozs. The paleochannel has been traced over a 2km length and is up to 700m
wide and 15m thick.
In the remote Proterozoic Paterson Province (NE of the Archean Pilbara Craton) Antipa
Minerals has established a very large 3,000sq km holding north of the 26Moz Telfer goldcopper mine, with plans to increase this to 6,300sq km. It recently announced a maiden goldcopper resource of 1.6Mozs Au equivalent (48Mt @ 1.0g/t Au equivalent) for its Calibre AuCu-Ag-W discovery in sulphide breccias in quartz veined sediments with a low strip ratio of 2:1.
The mineralisation is associated with an 800m x 600m magnetic anomaly and a coincident EM
anomaly. The mineralisation is about a kilometre from Antipa’s previous discovery at the
gabbro and sediment-hosted Magnum deposit (28Mt @ 0.5g/t Au and 0.3% Cu).
Encounter Resources, in joint venture with Antofagasta, is exploring for copper in the Paterson
Province and has reported copper sulphide intersections at Yeneena in a similar setting to the
sediment-hosted Nifty copper deposit (resource 148Mt @ 1.3% Cu) 65km to the north.
Intersections include 5m @ 2.5% Cu from 387m, and 1.5m @ 2.3% Cu from 285m.
Sipa Resources announced copper sulphide intersections at Thaduna in the Proterozoic Yerrida
Basin north of the Yilgarn Craton. Hits include 63m @ 1.1% Cu from 90m, and 29m @ 1.1%
Cu from 82m, in sediments within a large 5km x 2km area of shallower secondary copper
mineralisation. The mineralisation has an unusual Ni-Co-Ag association and thus may be similar
to some Zambian Copperbelt styles of mineralisation.
4
Less than twelve months from its discovery of nickel sulphides at Camelwood, in the Yandal
greenstone belt of the Yilgarn Craton, Rox Resources has announced a maiden resource of
1.6Mt @ 2.2% Ni (34,600t Ni). The mineralisation remains open at depth and along strike. Rox
has also announced another discovery 500m south at Cannonball where drilling of a 1km-long
geochemical anomaly has intersected 3m @ 3.4% Ni, 0.15% Cu, 1.1g/t PGE from 62m and 5m
@ 1.3% Ni, 0.11% Cu, 1.2g/t PGE from 81m.
Atlas Iron has reported further exploration success in drilling DSO hematite targets occurring
over a 10km strike length at Corunna Downs in the Pilbara iron ore province. Intercepts
include 146m @ 56.6% Fe and 42m @ 60.8% Fe, both from surface. In the same region
Winmar Resources and Cazaly Resources have upgraded their channel iron deposit resource at
Hamersley, following test work on drill samples, to 343Mt @ 54.5% Fe (57.9% CaFe).
Northern Minerals has reported further dysprosium-bearing heavy rare earth oxide intersections
at Browns Range including 36m @ 2.1% TREO from 359m, and 19m @ 3.8% TREO from
358m, in quartz-xenotime veins in Paleoproterozoic arkoses and schists SE of the Halls Creek
Mobile Zone in the Kimberley region. The resource was recently increased to 4.1Mt @ 6.8kg/t
TREO (including 3.8kg/t Y2O3 and 0.6kg/t Dy2O3) containing 28Kt TREO of which 82% is
HREO. The main vein, Wolverine, appears to be widening and increasing in grade with depth.
In the Proterozoic Capricorn Orogen, Artemis Resources has reported further antimony-lead
intersections at Eastern Hills, including 4m @ 5.3% Sb, 13.8% Pb, 1.7g/t Au, 109g/t Ag from
156m, and 8m @ 2.1% Sb, 2.6% Pb from 212m, on a 1km-long vein. Additional veins have
recently been identified by a rock sampling programme.
Lucky last is Northern Star Resources, more known for its modest sized, bonanza-grade
Paulsens gold mine in the Capricorn Orogen. While drilling at Kazput for paleochannel gold
between its Paulsens and Ashburton gold projects, it intersected a coal seam between 12m and
65m thick in eight holes over a 7km strike length below soft overburden ranging from 32m to
73m thick. The coal appears to be thermal grade with similar calorific value to some of the
thermal coal mined in Indonesia and exported to India and China. This could be the first
significant coal find in the Pilbara region.
QUEENSLAND
Commencement of RC drilling at the Brilliant Brumby gold project (held by the privately
owned company Intergroup Mining Pty Ltd), situated in the Silurian to Devonian Lolworth
Terrain east of the Charters Towers Goldfields in NE Queensland is imminent. Visible gold in
quartz veins was discovered and worked at the Brilliant Brumby Mine from 1937 to 1940, and
sporadically thereafter in 1947 and 1961. Total recorded production is 790oz (24.6 kg) from 950t
of ore. Quartz veins trend north-south for up to 2km and exploration to date has reported
significant gold in rock chips ranging from 1.0g/t to 160g/t Au along it’s known strike length.
The Lolworth Terrain is an underexplored neighbour of its rich cousin, the historically
significant Charters Towers gold field which produced nearly 7Moz of gold at an average grade
of 34g/t Au. As such the progress of the Brilliant Brumby project is a reinvigoration of
exploration in what has long been considered a mature exploration terrane and progress will be
watched with some enthusiasm from the Queensland quarter.
Evolution Mining’s exploration in Queensland focused on project work at the Pajingo, Cracow
and Mt Carlton gold mining operations and entailed building 4D geologic interpretations to
5
understand the formation, burial and subsequent erosion of the epithermal porphyry systems in
the Bowen and Drummond Basins. As part of this, three high-resolution 2D seismic lines were
acquired at both Pajingo (23km) and Cracow (7.5km). Processing of the lines was completed and
initial interpretation indicated that sub-vertical fault structures, defined by the offset of shallowly
dipping beds, correlate with some of the known fault systems that host epithermal mineralisation
at Pajingo and Cracow. At Pajingo specifically, assays from the final surface diamond hole
JMRD3940 from the program drilled at Lynne returned 1.6m @ 4.75g/t Au from 400.9m, and
6m @ 4.26g/t Au from 404m (including 1m @ 13.6g/t Au). The company has proposed further
drilling to test for new vein systems interpreted from recently acquired seismic data which will
form part of a proof of concept for defining associated vein and fault systems from the seismic
data.
China Yunnan Copper significantly expanded its tenure position in the Mt Isa region by
entering into farm-in agreements with Altona Mining (Roseby South project) and Elementos
(Millenium project) – creating a contiguous area of exploration tenure of more than 1,000km2.
The company continues to develop exploration models to assist in identifying the source of
mineralisation in the vicinity of the 12km long Mary Kathleen Shear Zone. Starting with the
27.7Mt Elaine copper-gold JORC inferred resource, China Yunnan Copper is seeking to
identify and develop commercial copper and gold resources within the Mary Kathleen and the
Mount Frosty Joint Venture areas. China Yunnan Copper completed a five hole diamond
drilling program to investigate a 135m strike length at Blue Caesar testing an zone of copper
(+/- gold) mineralisation. The drilling program confirmed the extension of multiple zones of
primary sulphide mineralisation (e.g. MKBC005: 35m @ 0.77% Cu from 26m) down-dip from,
and to the immediate north of, earlier drill holes but the mineralisation did not continue further to
the west or north-west.
Inova Resources, in the Cloncurry region, north-western Queensland, has 48 granted
Exploration Permits for Minerals (EPMs) with a total area of 5,654 km2. Exploration activities
for the quarter principally targeted large, stand-alone Iron Oxide Copper Gold ("IOCG") style
deposits using IP surveying, and testing the Confucius gold target. At Confucius, a total of 25
holes for 3,075 metres were drilled in July and August 2013 to test strike and dip extensions of
two gold- and arsenic-rich mineralised vein systems hosted by sillimanite-andalusite schist
adjacent to the Mount Elliot mineralization system 10 to 15kms north-northeast of the Starra
276 lode. A total of 1,386m RC and 296m diamond (including 524m as diamond tails) was
drilled along the eastern zone at Confucius. The gold- and arsenic-rich veins dip steeply west at
approximately 70° and intercepts greater than 0.5g/t gold are generally only one metre in width
but can be traced over 500m in strike length and the prospect is open to the north and south. The
highest grade result reported was CFR006 (8m @ 10g/t Au from 74 m) and the widest zone of
mineralisation was from hole CFD005 (24.1m @ 1.76g/t Au from 17.9 m). Drilling at the
western zone totalled 869m. The vein system is described at surface to be very similar to those in
the eastern zone with high arsenic in the form of scorodite and gold values up to 30.5g/t seen
also as high soil-gold values. Despite intersecting strong arsenopyrite veining, no gold is
associated with the veins at depth.
Minotaur’s main area of exploration activity is in the Cloncurry District where an extensive
(4,055 km2) package of tenements highly prospective for IOCG deposits has been assembled
6
over the past several years. Tenements surround the Ernest Henry and Eloise Cu-Au mines and a
large tenement group surrounds the Osborne Cu-Au mine. All tenements are veneered by cover
sediments and a large number of potential targets are being systematically surveyed using
advanced geophysical techniques and then prioritised for drill testing.
Minotaur completed a four-hole diamond drill program of 1,240m to test four new targets for
copper-gold mineralisation under shallow but widespread cover south of the Osborne coppergold mine. The Osprey, Brolga and Wedgetail prospects are new targets, located under
widespread cover, and generated from regional tectonic, geological and geophysical
considerations. Anomalous mineralisation has been intersected in three of four exploratory holes.
At Osprey, thin quartz +calcite +chalcopyrite veins within the interval 203-211 m of drill hole
OS13D02 returned a best assay result of 0.45m @ 0.59% Cu and 0.22g/t Au. The veins indicate
a potential southerly extension of the mineralising system at the Kulthor mine. Drill hole
OS13D03 targeted a weak IP anomaly at Brolga and was drilled to a depth of 283.8m. Quartz
and pyrite veins within a zone of shearing and faulting (172-183 m) contain elevated Au and As,
including a best interval of 0.9m @ 0.39g/t Au from 172m in association with some graphite.
SOUTH AUSTRALIA
Investigator Resources commenced follow-up of a previously recognized but poorly tested
epithermal system in the southern section of the Gawler Craton (350km NW of Adelaide) in
2011 with shallow scout drilling, and in the process discovered a significant emerging silver
province. Since then the company has successfully used a systematic combination of a robust
geological model (based on Central/South American analogies including the Alamo Dorado
deposit in Mexico), magnetics, gravity, silver soil geochemistry, and drilling at its Paris Silver
Project to discover and delineate significant silver resources. The flat-lying silver mineralization
occurs at shallow depth (mostly <75m) within an epithermal breccia at the base of a pile of
Proterozoic andesitic volcanic. The Paris silver deposit has dimensions of 1,200m x 400m and is
open along strike, with exploration continuing on other silver occurrences spatially related to
volcanic vents in the immediate district. The company has now announced a maiden JORC
Inferred Resource of 5.9Mt @ 110g/t Ag and 0.6% Pb using a 30g/t Ag cut-off for 20Moz of
contained silver. Preliminary metallurgy is positive suggesting that the ore will be amenable to
conventional extraction processes.
NEW SOUTH WALES
Alkane Resource’s Tomingley Gold Project is in the construction phase with the first gold pour
expected in February 2014. The resource consists of a number of adjacent deposits, and the
Caloma Two deposit has been subject to extensive resource definition drilling in the last twelve
months designed to confirm mineralisation outlined in broadly spaced drilling completed in 2010
and 2011 and to upgrade to resource status. An initial resource assessment for Caloma Two of
1.7 Mt @ 2.0g/t Au for 109.3Koz Au was completed by Mineral Resource Consulting. Total
resources within the TGP are now 14.29 Mt @ 2.0g/t Au for 921Koz Au.
7
Unity Mining owns and operates the Henty Gold Mine in Tasmania and is developing the
Dargues Gold Mine in New South Wales. An update to these operations’ resources and reserves
was recently announced. At Henty, the measured resource is 1613Kt @ 4.8g/t Au with 607kt @
4.7g/t Au of proved reserves. At Dargues, the measured resource is 378Kt @ 7.2g/t Au with
476Kt @ 5.3g/t Au of proved reserves.
Peel Mining reports that the Mallee Bull project (located 100km south of Cobar) continues to
produce positive results. Recent exploration efforts have focused on identifying potential new
sources of mineralization. The Butcher’s Dog target is a combines DHEM/magnetic target north
of Mallee Bull. There drill hole (BDDD001) intercepted a broad zone of pyrrhotite and chlorite
alteration coincident with a targeted down-hole electromagnetic conductor plate; DHEM survey
of BDDD001 identified a new very strong (170 milliseconds time constant) offhole conductor.
At the Sandy Creek prospect drill hole (PSCDD001) targeted a strong DHEM anomaly and
returned several broad zones of mineralisation/alteration with significant base metal intercepts
returned; 19m @ 16g/t Ag, 0.33% Cu, 2.64% Pb, and 0.31% Zn including 4m @ 48g/t Ag,
0.50% Cu, 9.63% Pb, and 1.1% Zn.
White Rock Minerals reported promising results from initial drilling of new exploration targets
located on the Central and White Rock Mining Leases at the Mt Carrington gold-silver project,
in the New England province. Highlights include 52m @ 27g/t Ag and 0.2g/t Au including 3m
@ 216g/t Ag and 3m @ 15g/t Ag and 1.1g/t Au at the Lead Block prospect; 47m @ 0.5g/t Au
and 23g/t Ag including 6.7m @ 1.2g/t Au and 23g/t Ag at the White Rock Deposit. New drilling
results from Red Rock highlight potential extension to the 2013 maiden resource on the
‘Deadman’s Zone’. Results include 40.8m @ 0.5g/t Au including 1.2m @ 2.6g/t Au, and 45.5m
@ 0.7g/t Au and 23g/t Ag including 10m @ 1.2g/t and 6m @ 0.5g/t Au and 105g/t Ag. The
company also completed modelling and resource estimation to upgrade the White Rock silver
resource. 51% of the resource is now classified as Indicated in accordance with the JORC
requirements by Ravensgate Mining Industry Consultants. The Indicated Resource is now 1.7Mt
@ 77g/t Ag for 4.2Moz Ag. The Indicated and Inferred Resource is now 4.4Mt @ 58g/t Ag for
8.2Moz Ag.
TASMANIA
In Tasmania’s Tarkine area, Shree Minerals’ Nelson Bay iron ore mine was opened in late
October and should be in production by December2013. However, although an appeal to the
State environmental regulator was dismissed in September, development of Venture Minerals’
Riley Creek iron ore mine has been stalled again by an appeal to the Federal Court by
environmental groups who are questioning the decision process of the Federal Environment
Minister’s approval of the project. It is expected that the issue will be resolved and that
development will be commenced in January 2014. Elsewhere two new small gold mines have
been granted all approvals and are commencing operations. These are an open cut gold mine by
Toque Mining and BCD Resources at the Stormont Au-Bi skarn near Moina in northern
Tasmania, and an underground mine by Webb Mining Services on three of the gold reefs in the
8
Mangana district in north east Tasmania. It is planned that ore from both these projects will be
treated at BCD Resources mill at Beaconsfield.
Elsewhere, Stellar Resources has completed a positive pre-feasibility study of the Queen Hill,
Severn and Montana tin deposits at Zeehan, which contain a combined indicated and inferred
resource of 6.28Mt @1.14% Sn. Recent exploration drilling beneath the Montana deposit
included an intersection of 2m @ 2.2% Sn and 1.3% Cu at the same stratigraphic position as the
Severn deposit, which has extended the known mineralisation by 120m down-plunge and
suggests that the two deposits may converge at depth.
NORTHERN TERRITORY
ABM Resources continues to expand the gold resource at its Twin Bonanza Gold Camp
located in the Central Desert region. The Twin Bonanza Gold Camp hosts multiple targets of
both high-grade and porphyry style (bulk tonnage) gold deposit styles. Accelerated exploration
and trial mining is underway along the Old Pirate trend which consists of a series of goldbearing quartz veins over a 1.8km strike length, consisting of 3 distinct vein clusters of
mineralization named the Old Pirate, Old Glory and Golden Hind deposits. Gold mineralization
is hosted primarily within narrow quartz veins of between 20cm and 6m in width. Mineralized
zones are up to 40m in width and consist of multiple veins hosted primarily within sedimentary
shale horizons which are part of a turbidite sequence (interbedded sandstone and shales).
Structurally the turbidite sequence has been folded into an anticline with late faults.
The Old Pirate Gold Deposit has a total uncut Mineral Resource estimate of 1.88Mt @ 11.96g/t
Au (724Koz Au) and has a number of key advantages compared to many other gold projects in
Australia. Firstly, metallurgical test work indicates that up to 97.3% of gold can be recovered.
Secondly, there is abundant high-grade gold observed in multiple quartz veins extending from
surface to depths of greater than 200m. The project has a high coarse gold content (statistical
nugget effect) resulting in a high variability of grade between samples. This sampling effect is
typical in coarse gold systems where drilling generally under-calls the overall grade. As a result,
the company is not undertaking the standard feasibility study process involving detailed desktop
studies and drilling, but is instead conducting a staged approach to development where the Trial
Mining (Bulk Sampling) forms a key part of determining the costs and feasibility of a full-scale
mine, and allows for ongoing ‘in-mine’ exploration. The Trial Mining includes the installation of
a gravity gold plant that will be used and expanded in the subsequent stages.
Kidman Resources continues to grow through the exploration of its flagship Home of Bullion
Project within the historic Barrow Creek Mineral Field, located 300kms NE of Alice Springs
in the Arunta Inlier. Deeper diamond drilling has progressed during the past two months
targeting down-hole electromagnetic conductors down-plunge on both the Main and Southern
Home of Bullion Cu-Pb-Zn-Ag lodes. The aim of this diamond drill program is to confirm the
continuation of high grade copper mineralization to at least 500m below surface. Drilling is now
complete for this phase of exploration and results will be received over the next months to allow
for a Maiden Resource to be estimated. Significant results from this recent drill program include
10.5m @ 3.78% Cu, 1.15% Pb, 1.99% Zn, 53g/t Ag & 0.59g/t Au from 480.4m (Main); and
7.4m @ 1.5% Cu, 1.81% Pb,1.95% Zn & 62g/t Ag from 569.6m (Southern).
9
The other significant gold project in the emerging Arunta Inlier is the Southern Cross Bore
project which is located 75km north east of Alice Springs in the Northern Territory in the
emerging Arunta mineral province, where recent exploration for IOCG and SEDEX-style
mineralization has yielded exciting results. Arunta Resources acquired 100% of Johnnies
Reward following the outstanding results returned from drilling undertake at the Johnnies
Reward prospect since mid-2012. The project area is located on a regionally significant shear
zone with numerous structural and geochemical anomalies. Two phases of RC drilling had been
completed by the previous owner (Transol) , returning significant intercepts including 24m @
4.19g/t Au and 0.33% Cu, 34m @ 3.83g/t Au and 0.46% Cu and 22m @ 1.23g/t Au and 1.21%
Cu. Latest drilling by Arunta has intersected 35.3m @ 3.44g/t Au, 0.45% Cu and 4g/t Ag, hence
adding to the mineralization inventory. The Arunta region has been identified by Geoscience
Australia as the country’s fifth IOCG province, and the Arunta holds a dominant land position of
over 650km2 in this emerging province. Other recent exploration activity in this region includes
the drilling results (including 9.1m @ 2.16% Cu) reported recently by Kidman Resources at its
Home of Bullion prospect, located north of Johnnies Reward.
Emmerson Resources is exploring the richly-endowed Tennant Creek Gold-Copper Mineral
Field where it has a dominant ground position covering some square 2,800 km2. The company is
advancing the Chariot gold deposit towards a production decision and has released a maiden
Mineral Resource estimate for its Goanna prospect, which includes intersections from drill holes
GRC1373 (which intersected 26m @ 4.75% Cu including 18m @ 6.34% Cu), and GRC1367
(which intersected 15m @ 8.13g/t Au including 3m @ 34.1g/t Au and 11.1% Cu). Recent
drilling at Goanna has continued to intersect significant mineralization in the newly discovered
shear zones, termed the FNSZ-1 & FNSZ-2 and will be the focus for upcoming drilling. The
Inferred Mineral Resource estimate currently is 2.9Mt at 1.8% Cu for 57Kt of contained copper
metal.
NEW ZEALAND
The Newmont Waihi Gold (65%) and Glass Earth Gold (35%) joint venture at the Wharekirauponga
(WKP) epithermal gold project in the Hauraki Goldfield, completed diamond drill holes WKP38 and WKP39 in
the Eastern zone. Hole WKP38 intersected 0.5 m @ 26.4 g/t Au from 196.7 m, and 1.5 m @ 20.9g/t Au from
300.0m, as well as a broad intersection of lower grade mineralization of 517 m @ 0.46 g/t Au from 169 m. Hole
WKP39 intersected 0.8 m @ 9.77g/t Au from 273.2 m, 0.8 m @ 5.92g/t Au from 582.2 m, and 0.7 m @ 6.46g/t
Au from 609.6 m, included in a low grade zone of 454.5 m @ 0.46g/t Au from 158.5 m. In addition, Glass Earth
Gold has carried out a major cost-cutting exercise including selling its alluvial gold operations in the South Island.
At the Sams Creek intrusion-related gold project in west Nelson, South Island, Mod Resources,
in its joint venture with OceanaGold, reported results from its first two holes in their Stage
Three drilling programme. Hole SCDDH090 intersected 11 m @ 2.01g/t Au from 321 m, and 5m
@ 2.5g/t Au from 341m. Hole SCDDH091 intersected 13m @ 3.14g/t Au, including 3m @
7.27g/t Au from 350 m. These gold intersections have extended the gold mineralization at the
Main Zone to about 350 m depth below surface and confirm that the Main Zone deposit remains
open at depth and along strike.
New Zealand Petroleum & Minerals announced two new tenders for submission of
Exploration Permits: the New Zealand Epithermal Gold 2013 tender closing 31 January 2014
10
and the Platinum New Zealand 2013 tender closing 30 April 2014. The epithermal gold tender
relates to an area of 8,040 km2 of the Central Volcanic Zone in the North Island, whereas the
platinum tender includes six separate areas of the South Island considered prospective for
platinum mineralization.
See www.nzpam.govt.nz/cms/minerals/competitive-tender for details.
11
NORTHERN EURASIA
Regional Correspondent:
Alexander Yakubchuk (SEG 1999 F)
Orsu Metals Corp, London, UK
E-mail: [email protected]
Detailed information can be found at http://gold.prime-tass.ru
NORTHERN EURASIA GENERAL
Governments
Russian Minprirody has signed a decree of acceptance of the new classification for mineral
resources, which takes into account an economic component, making it more similar to the
international systems. During 2014–2015, the required legislative adjustments will be made.
According to Rosnedra, the new classification will lift total Russian mineral resources from
eighth to third in the world. The current classification was temporarily adopted from the 1980
Soviet system, which was based only on geological considerations.
The Russian government submitted new amendments to the Subsoil Law to Duma, which
are related to minerals in the strategic areas. They will facilitate access to what is currently
classified as occurrences of diamonds and PGE, and will still be limited to the deposits with
existing resources. The government is seeking more investment in exploration.
Kazakhstan is planning to cancel 40 subsoil contracts before year-end 2013. The Kazakh
minister also revealed that the country is contemplating cooperation with KORES, JOGMEC,
and Iluka Resources. The government has thoroughly studied mining industry practices in
12
Australia and Canada and developed a model based primarily on Australian practices to attract
investment into the geological exploration sector. In Kazakhstan, there are only 400 exploration
contracts and the government is attempting to change the situation in order to attract investors.
For instance, Rio Tinto is planning an estimated expenditure of US$13 million for the initial
phase of geological exploration at its operations in Kazakhstan. The government companies
have three other agreements with Japanese and South Korean companies.
Companies
Alrosa sold 16% of its shares to Russian and U.S. investors at an initial public offering (IPO) for
US$1.181 billion. Post-IPO, the Russia Federation owns 43.9% and Yakutia owns 25%. Both
major parties agreed not to decrease their shares below 25% plus one share each for five years,
with a possible extension of an additional five years. The revenue of Alrosa is expected to grow
21.2% in 2017 to ca. US$6 billion, with slightly under US$5 billion in 2012. Alrosa is planning
to increase its exploration budget in by 9.6% from current US$190 million, with main focus on
western Yakutia. The existing resources allow maintenance of the current level of production for
25 to 30 years.
Nornickel is negotiating a potential joint venture (JV) with BHP Billiton and Rio Tintо
on its Maslovskoye deposit in Taimyr to reduce economic risks. Its preliminary resources are
215 Mt at 0.3% Ni, 0.6% Cu, 1.1 g/t Pt, and 4.9 g/t Pd. The other candidates are UGMK and
Russian Platinum.
Polymetal International plc is rumored to have bought a Bakyrchik mine for US$500
million in Kazakhstan. The reserves of Bakyrchik are 5.76 Moz Au at 8 g/t, within a resource of
7.35 Moz Au.
13
Baikal Mining Company (JV between Metalloinvest and Rostech) has revealed its
preliminary estimate of the initial US$6 billion CAPEX for the Udokan Cu deposit in the Chita
area (Russia). The company is planning to produce cathode copper and 45% copper concentrate.
The payback period is estimated to be 15 years. The planned capacity is 400 Kt of copper
concentrate and 200 Kt of cathode copper. The company believes that a 60 Mtpa mining rate will
be difficult to achieve because of infrastructural constraints.
In Chukotka, Kinross Gold began production at the Dvoinoye gold deposit. During the
first three years, it will be producing between 6.5 and 8.5 t of gold. This is the fourth mining
project of Kinross in Russia.
DETAILED REVIEWS
RUSSIA
EUROPEAN PART
In Perm, Russian Government is planning to conduct an auction during Q1 2014 for the
Musikhinskoye diamond deposit. The area of 1.52 sq km hosts a Р1 resource of 49,000 carats
of diamonds. The starting price is US$7,000.
In Northern Ossetia, Sevosgeologorazvedka, part of Rosgeologia, will conduct exploration
works until 2015 at the Dzhimidonskoye polymetallic deposit with a state-funded budget of
US$6.6 million. The previous works have identified C1+C2 resources of 52.7 kt Pb and 131.7 kt
Zn, with additional off-balance 3.1 kt Pb and 11.1 kt Zn. Potential by-products are Ag, Au, Cu,
Bi, Cd, In.
In Voronezh, UGMK and Nornikel may form a JV to develop Elanskoye and Elkinskoye
nickel deposits.
In Kola, Eurasia Mining Plc extended for three years its PGM license for Monchetundra. The
two mineralized zones - Loipishnyun and West Nittis - host between 1 and 1.3 g.t Pt+Pd, 2-15
g/t Au+PGM. The Ni grade is 2.13%, with 0.15% Cu.
URALS
In Chelyabinsk, ООО Vostochnyi Basis (25% Polymetal Int, 75% Gerosena Trading Ltd)
won an auction for the Tarutinskoye prospect by paying US$0.5 million. Polymetal will have to
drill 11,000 m during 4 years. The current potential P1 resources are 260 kt Cu grading 0.76%.
14
The area is truncated in the east by the border with Kazakhstan. In 2011, Russkaya Mednaya
Kompaniya offered US$60 million at the auction (89 times above the starting price), but did not
pay the fee and the auction was denounced.
In Bashkortostan, Russkaya Mednaya Kompaniya won an auction for the KaranoAleksandrovskoye gold area by offering US$300,000. The forecast resources (P1) are 3.3 t Au
grading 2.47 g/t, including 0.4 t Au in oxide. P2 resources contain 28.3 t Au, including 3.5 t in
oxide. The area is located 25 km from the Uchaly deposit.
SIBERIA
In Transbaikalia, Nornikel decided to delay beginning of production at its Bystrinskoye CuAu deposit until 2018.
In Buryatia, Buryatzoloto, part of Nordgold, won an auction for the Zhanokskaya area by
paying US$0.3 million. It is located to the west of its mining operations. As of 1 january 2012,
the P2 resources include 20 t Au and 40 t in P3 category.
In Irkutsk, Kopy Goldfields AB signed a preliminary agreement with a Russian company to
sell its Kavkaz and Prodolnoye licenses for US$1.5 million. Kopy Goldfields AB owns 7 other
licenses in the Lena goldfields.
In Altai, Seligdar is preparing exploration programme for the Semenovskoye and Vostochnaya
areas with Р2 resources of 11.5 t Au. The planned investment is US$3.3 million to start in 2014.
FAR EAST
In Yakutia, Aterra Investments Ltd, affiliated with Alexei Mordashov, and Forbes &
Manhattan Inc will provide C$1 million (@20% interest rate) to Silver Bear Resources Inc to
continue works at the Mangazeya deposit. The NI43-101 inferred resources are 30.6 Moz Ag
(1.7 Mt @ 554 g/t Ag), and indicated resources of 19 Moz Ag (1.1 Mt @ 514 g/t Ag).
In Yakutia, Seligdar has approved in local committee for reserves the resources for the
Trassovoye and Khvoinoye deposits, part of its Nizhne-Yakokitskiy cluster, in C1 category for
9.9 Mt containing12 t Au. Seligdar also submitted to GKZ a resources estimated for the
Lunnoye deposit, with 7.5 Mt ore containing 14 t Au.
In Primorie, Primorgeologia, part of Rosgeologia, announced completion of works at the
Malinovskoye areas with potential resources of 75 t Au.
KAZAKHSTAN
Kazakhstan Potash Corp announced transactions to acquire a 100% interest in the Satimola
potash and borate project by acquiring all issued shares in BVI-based Satimola Ltd. Board
considers Satimola as one of the world’s most advanced potash projects and production-ready
within a short time frame. The project complements KPC’s existing interests in the Zhilyanskoe
15
and Chelkar potash projects, also in Kazakhstan, which the company agreed to acquire in March
2012. The acquisition is subject to approval from the government’s Ministry of Industry and
New Technologies of Kazakhstan and receipt of all regulatory and shareholder approvals.
Kazax Minerals started a diamond drilling at the Lomonosovskoye project. The program will
include drilling of 12000 m in 19 geotechnical, 9 hydrogeological and 21 exploration holes.
Alhambra Resources has entered into a financing agreement with Global Resources
Investment Limited (GRIL) for a Can$5.0 million convertible note financing. GRIL is seeking
admission of its ordinary shares on the main market for listed securities on the London Stock
Exchange, where it proposes to re-register as a public company and constitute a UK investment
trust with the name Global Resources Investment Trust Plc (GRIT).
KYRGYZSTAN
Robust Resources Ltd, working mainly in Indonesia and the Philippines, signed an agreement
with KGL Resources Ltd (previosly Kentor Gold) to buy 70% in its Cu-Au Bashkol project
near Kumtor. To gain 51%, Robust will have to invest A$2 million by 31December 2017; and
addition A$5 million before end 2021.
Manas Resources has reported trenching and drilling results at the Ulugtau prospect on its
Djilginsai licence, about 40km from its Shambesai gold project. High-grade trench results of 7
m @ 5.27 g/t gold, including 3 m @ 10 g/t gold, and 6 m @ 10.35 g/t gold, including 3 m @
18.7 g/t gold, were returned from trenches to assist with interpreting orientation of mineralization
identified by previous drilling, which included 10.8 m @ 13.23 g/t gold from 29.2 m. Significant
grade has been found on surface in strongly altered silica within siltstones and sandstones
between the two new trenches and the 2009 drill hole over a 200-metre strike length. A small
program of follow-up drilling after trenching was completed returned no significant results, but
showed mineralization at perpendicular orientation and in a different setting to the ShambesaiObdilla model. Follow-up mapping will be undertaken to ensure the next phase of drilling will
properly test the mineralized zone. Drilling is nearing completion at the Obdilla prospect, 7km
from Shambesai and a drilling program is scheduled to commence at Shambesai later this quarter
Orsu Metals Corp extended its exclusive option agreement with David-Invest Llp on AkdjolTokhtazan gold project.
UZBEKISTAN
Almalyk Mining Combine (AGMK) has again delayed the beginning of development of its
Dalnee porphyry copper deposit until 2016 год (previously 2012 and 2014). In 2014 the
company may complete its technical-economic calculations and will seek financing of the project
with estimated capex of US$400 million. The planned capacity of the mine (located near the
existing operation at Kalmakyr) is 15 mtpa during the first phase (5 years). At the second stage
the capacity may reach 30 Mtpa.
16

Download Report