(MENAFN- ABN Newswire)
Mithril Resources (ASX:MTH) ("Mithril") and its exploration partners are exploring for gold, nickel and copper throughout the Kalgoorlie and Meekatharra Districts of Western Australia, and the Coompana Province of South Australia (see Figure 1 in the link below).
Key Points
Nanadie Well (Copper - Nickel - Cobalt)
- Broad downhole widths of visible copper sulphides intersected in all three diamond holes drilled to test Nanadie Well Copper Deposit and new EM conductors at the Stark Copper Nickel Prospect, including:
o 30 metres of disseminated, blebby, matrix, semi - massive and massive copper sulphides in first drill hole testing new EM conductor at southern end of Stark.
- Final assay results expected in late July.
Willow Well (Gold)
- Surface rockchip samples return up to 8.22g/t gold from new Fenceline Gold Prospect.
- Elevated gold in rockchip samples from a 120 metre long zone defined by sub-cropping ferruginous and brecciated quartz veining.
- No previous drilling and remains open along strike.
Lignum Dam Project (Nickel / Gold)
- RC drilling at the Mexi Nickel Prospect returns 40m @ 0.46% nickel, 305ppm copper, 354ppm cobalt and 66ppb PGE's from surface.
Spargos Reward (Gold)
- A maiden 2012 JORC Code compliant Indicated and Inferred Resource of 1.01Mt @ 3.9g/t gold (126Koz gold) was estimated for the Spargos Reward Gold Deposit.
- Spargos Reward lies on a granted Mining Lease held by Corona Minerals (65%) and Mithril (35%).
Exploration Plan for next Quarter
- Integrate drilling assay results and update geological models for the Nanadie Well Copper Deposit and Stark Copper Nickel Prospect.
- Downhole EM surveying of recently drilled holes at the Stark Copper Nickel Deposit and Nanadie Well Copper Deposit.
- Further mapping and sampling at the Fenceline Gold Prospect.
Corporate and Cash
- Cash reserves of $0.82M at 30 June 2017.
Exploration Overview
During the June 2017 Quarter (the "Quarter") Mithril identified the new Fenceline Gold Prospect (Willow Well Project - Meekatharra) and successfully carried out drilling programs at the Nanadie Well Copper Deposit and Stark Copper Nickel Prospect (both Nanadie Well Project - Meekatharra) and the Mexi Nickel Prospect (Lignum Dam Project - Kalgoorlie).
A 2012 JORC Code compliant resource of 1.01Mt @ 3.9g/t gold (126Koz gold) was also estimated for the Spargos Reward Gold Deposit (Kalgoorlie).
Corporate
During the Quarter, the Company spent $0.17M on its exploration activities outlined in this report and at 31 June 2017, the Company had cash reserves of $0.82M.
Nanadie Well Project (Copper-Nickel-Cobalt)
Nanadie Well (Mithril 100% and earning up to 75%),
During the Quarter, diamond drilling was undertaken at both the Nanadie Well Copper Deposit and the adjacent Stark Copper Nickel Prospect (located 80 kms SE of Meekatharra, WA - see Figure 1 in the link below).
To better understand the deposit's geological setting and to confirm its potential to host other minerals such as cobalt, nickel and PGE's (see Mithril's ASX Announcement dated 28 March 2017), one diamond hole (NDD17001) was drilled below a previous intersection of 160m @ 0.37% copper, 0.07g/t gold from surface (which included 6m @ 1.39% copper, 0.24g/t gold and 9m @ 2.03% copper, 0.35g/t gold in NRC12013.
NDD17001 intersected multiple intervals of disseminated copper sulphide (chalcopyrite) mineralisation over 10's of metres between 50.6 metres to 170.55 metres* with several internal zones (3 - 5 metres*) of vein and stringer copper sulphide mineralisation at the respective target depths. Assays are pending.
Two diamond holes (NDD17002 and 003) were also drilled at Stark where a high-powered SQUID ground EM survey identified multiple bedrock conductors (named M1 - M5d) with (conductivity thicknesses ranging from 660S to 5,000S. The M1 conductor has a strike length of over 300m and is interpreted to represent a southern extension to existing high-grade copper mineralisation.
The large M1 conductor lies below and immediately south of drillhole NRC15001 which previously intersected mineralisation in two parallel zones, i.e.; 2m @ 3.27% copper, 0.10% nickel, 0.55g/t gold, 0.38g/t PGE's from 157 metres and 14m @ 0.40% copper, 0.08% nickel, 0.04g/t gold, 0.22g/t PGE's from 200 metres.
NDD17002 successfully intersected 30 metres* of disseminated, blebby, matrix, semi-massive and massive copper and iron (pyrrhotite) sulphide mineralisation from 248 metres downhole, at the M1 conductor modelled depth (see Figures 2 and 3 in the link below). Assays are pending.
The intersection extends the Stark Trend significantly to the south and demonstrates that the M1 conductor is related to copper sulphide mineralisation.
NDD17003 drilled to test the M3 conductor successfully intersected 8 metres* of disseminated, blebby, matrix, semi-massive and massive copper (chalcopyrite) and iron (pyrrhotite) sulphide mineralisation from 94 metres downhole, at the M3 modelled conductor depth.
All holes were cased for DHEM surveying to assist with targeting further drilling. This surveying is expected to commence when a DHEM crew become available in the area.
At the date of this Report, all drill core had been cut and sampled with final results for the three holes expected in late July.
The Nanadie Well Copper Deposit (2004 JORC Code Compliant Inferred Resource of 36.07Mt @ 0.42% copper, 0.064 g/t gold - 151,506 tonnes copper and 74,233 ounces gold estimated by Intermin Resources Limited ASX:IRC in 2013) lies on tenements subject to a Farmin and Joint Venture Agreement with Intermin Resources Limited (ASX:IRC).
Under the terms of the agreement, Mithril can earn a 60% interest in the tenements by completing expenditure of $2M by 14 April 2019, and an additional 15% by completing further expenditure of $2M over a further 2 years.
Willow Well Project (Gold)
(Mithril 100%)
Rockchip sampling undertaken during the Quarter has identified a new gold prospect (called "Fenceline") on the 100% - owned Willow Well tenement (EL51/1615), approximately 70 kms southeast of Meekatharra, WA and 20 kms north of Stark (see Figure 1 in the link below).
At Fenceline, a zone of sub-cropping ferruginous and brecciated quartz veining has been mapped and sampled over approximately 120 metres strike length with rock chip results ranging from 0.43 g/t gold to 8.22g/t gold (see Figure 4 in the link below).
The zone, which has never been drilled, has an estimated surface width of up to 5 metres and remains open along strike to the south east where it passes under an area of alluvial sheet wash and drainage.
Mithril plans to conduct further detailed mapping and sampling ahead of potential drill testing in the second half of 2017.
Lignum Dam Project (Nickel / Gold)
(Mithril 100%)
During the Quarter, Reverse Circulation hole KNRC001 was drilled to test a broad zone of shallow nickel-coppercobalt - platinum + palladium ("PGE's") anomalism within weathered ultramafic rocks at the Mexi Nickel Prospect (located 50 kilometres north-northeast of Kalgoorlie, WA - see Figure 1 in the link below).
KNRC001 intersected a broad zone of weakly disseminated sulphide - bearing high MgO ultramafic (peridotite) beneath a zone of strong weathering - sampling of which returned 40m @ 0.46% nickel, 305ppm copper, 354ppm cobalt and 66ppb PGE's from surface.
Maximum analytical values for any single metre sample of the fresh disseminated sulphides were; 1730 ppm nickel, 514 ppm copper, and 91 ppb PGE's.
To assist with ongoing assessment of Mexi, KNRC001 has been cased with PVC to provide a platform for downhole EM surveying.
Spargos Reward Project (Gold)
(Mithril 35%, Corona Minerals 65%)
A 2012 JORC Code compliant Indicated and Inferred Mineral Resource of 1.01Mt @ 3.9g/t gold (126Koz contained gold - see Table 1 in the link below) was estimated for the Spargos Reward Gold Deposit by independent mining consultants Al Maynard and Associates Pty Ltd (AM&A) on behalf of Corona Minerals Limited ("Corona"), Mithril's exploration partner at Spargos Reward.
Spargos Reward is located 55 kilometres south of Kalgoorlie, WA (see Figure 1 in the link below) and lies within M15/1828 which is held in a Joint Venture between Corona (65%) and Mithril (35%).
Gold mineralisation at Spargos Reward occurs within a sub-vertical zone of strong shearing and alteration (quartz - pyrite - arsenopyrite) at the contact between felsic volcaniclastics and quartz biotite schists and has been historically mined to a vertical depth of 120 metres (via underground and open pit) with total production of approximately 29,260 ounces @ 8g/t gold.
The new mining depleted Mineral Resource estimate was prepared using a mixture of validated historical drilling data and recent Corona drilling data (85 drill holes for 13,176 metres of combined Reverse Circulation and Diamond drilling) over a strike length of 300 metres and from surface (420m RL) to an approximate depth of 500 metres (-50mRL).
Other Projects
No work was undertaken during the Quarter on the following projects:
- Grey Dam South (Mithril 100%),
- Leaky Bore (Mithril 100%),
- Coompana (Mithril right to earn 20% / OZ Minerals 100%),
- Duffy Well (Mithril 100% - Doray Minerals earning an initial 51% and operating), and
- Kurnalpi (Mithril 100% - Chesser Resources earning an initial 50% and operating).
Exploration Plan for next Quarter
- Integrate drilling assay results and update geological models for the Nanadie Well Copper Deposit and Stark Copper Nickel Prospect.
- Downhole EM surveying of drillholes NDD17001, 002 and 003 at the Stark Copper Nickel Prospect and Nanadie Well Copper Deposit.
- Further mapping and sampling at the Fenceline Gold Prospect.
Notes Specific - March 2017 Quarter ASX Announcements
The following announcements were lodged with the ASX during, and immediately subsequent to the Quarter. Further details (including JORC 2012 Code Reporting Tables, where applicable) for each of the sections outlined above can be found in the announcements.
- New Meekatharra gold prospect - 28.06.2017
- Broad zone of copper sulphides at Stark - 19.06.2017
- Exploration and Drilling Update - 06.06.2017
- Mineral Resource for the Spargos Reward Gold Deposit - 23.05.2017
Note: Downhole widths
To view tables and figures, please visit:
http://abnnewswire.net/lnk/B4151D82
() is an Australian resources company whose objective is the creation of shareholder wealth through the discovery and development of mineral deposits.
The Company is actively exploring throughout two highly prospective areas of the Western Australian Goldfields, namely the Kalgoorlie District for gold and nickel deposits and the Meekatharra District for copper-nickel deposits.
The Company is also exploring South Australia’s far western Coompana Province for magmatic nickel – copper deposits with OZ Minerals Limited.
Mithril Resources LtdDavid HuttonManaging DirectorE: : +61-8-8132-8800F: +61-8-8132-8899www.mithrilresources.com.au
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