News

Worthy Parts have Machines and Components for sale

Our local Kalgoorlie friends at Worthy Parts have a number of Machines and Components for sale.  Following is a link to what is currently available:

Epiroc Boomer S2 Drill – Worthy Parts

Caterpillar 950k Loader – Worthy Parts

Tamrock Tamrock Commando 120rf – Worthy Parts

Caterpillar Cat Ad45b Wheel Group 178-9085 – Worthy Parts

Caterpillar Cat C18 Ad55 Engine 297-3152 – Worthy Parts

Metal Hawk soars on WA nickel sulphide discovery

Market punters pushed Metal Hawk’s share price through the roof after maiden reverse circulation drilling at the company’s Berehaven nickel project near Kalgoorlie hit massive sulphide nickel mineralisation. Metal Hawk’s share price touched 76c in intraday trading after it announced a two-metre intersection of massive and semi-massive nickel sulphide mineralisation. The company’s previous day’s closing share price was 18.5c.

The company is now planning to launch a diamond drilling campaign to follow up on the nickel sulphide hit.  The discovery comes on the back of three RC holes at the Commodore prospect located in the south-west area of the Berehaven tenure.  The company says the Berehaven tenure, which spans for more than 95 square kilometres, plays host to several underexplored target areas. The drilling at Commodore focused on an interpreted north-northwest trending ultramafic rock sequence stretching for up to 10km at the project.

With the price of nickel trading close to seven-year highs at about US$20,000 per tonne, Metal Hawk followers will no doubt be sweating on the results from its drilling at Berehaven.  And with the battery metals sector burgeoning right now and not looking like easing up anytime soon, now would be a good time to make a serious nickel discovery – particularly as there is more nickel in a lithium battery than lithium.

Mount Ridley grows WA rare earth strike to over 25km

Mineral exploration company, Mount Ridley Mines has upped the ante in its rare earth element hunt at its Mount Ridley project near Esperance in Western Australia where re-assayed historical drill data is now defining a relatively shallow mineralised zone that stretches across more than 25 kilometres of strike.  Curiously, the results have shown continuity of mineralisation between Winston’s and the Lake prospect which now combine for a serious mineralised area covering more than 10km in length and 1km in width.

The 100 per cent owned Mount Ridley tenure takes in a vast 3,400 square kilometres across eight granted exploration licences and another licence currently under application.

Rare earths mineralisation at the project occurs as horizontal, sheet-like lenses to a maximum depth of 89m, interpreted by the company to be hosted in a saprolite clay horizon with other lower grade zones occurring within transported cover.  Mt Ridley has now launched a geological and litho-geochemical study to better understand the relationship between the rare earths mineralisation and its host structures.

The company is also considering core drilling to verify mineralisation from historical air-core holes and to acquire core for metallurgical and geotechnical testing.  Management believes the rare earths grades encountered at Mount Ridley to date are comparable to the Makuutu resource in Uganda, operated by ASX-listed Ionic Rare Earths.

 

Kingwest strikes gold under Lake Goongarrie

Kingwest Resources has produced an exceptional set of first pass drill results that appear to show a significant gold discovery lurking under the mineralised cover at Lake Goongarrie north of Kalgoorlie. Twelve holes intersected significant gold values across a 500 metre extent of the first drill line within Target A10 of the newly named Sir Laurence prospect under the lake at Goongarrie.  Importantly management says the prospect remains open in all directions and a plethora of additional litho-structural targets remain to be drilled.

According to the company, the Sir Laurence Prospect is shaping up to be an extensive area of newly discovered gold mineralisation that has been historically masked by the significant cover in the area. Management says the new discovery supports its litho-structural targeting theory that is based on the significant mineralisation at the Kanowna Belle gold mine in the region.

The Kingwest land package at Goongarries covers approximately 125 square kilometres over a strike length in excess of 25km. Kingwest has to date delineated 10 main targets that require drilling with only five targets drilled so far.

With only a hand full of assays in hand the anticipation around Sir Lawrence is mounting.  Just what sort of mineralised monster is lurking below the Goongarrie lake is yet to be determined but one thing seems certain based on the first pass results – there is something down there.

Red 5 keeps 2022 production start on schedule

Red 5 has hit several construction milestones at the King of the Hills (KOTH) gold project, as the emerging gold miner nears production at the Western Australian site.  The 2.4-million-ounce project remains on schedule, with Red 5 targeting first production by the June quarter of 2022.

All SAG mill components have been delivered to site, with assembly of the mill shell now underway. The CIL tanks have also been fully welded, while six of the eight CIL tank agitators have been assembled.

Red 5 managing director Mark Williams acknowledged the efforts of the company’s workforce to keep construction moving despite the difficult labour shortage, which has plagued the state’s resources sector in 2021.

“Despite the challenging environment for people, equipment and services across the WA mining industry, King of the Hills remains within budget and on schedule, which is a credit to the diligence, hard work and focus of our team,” Williams said.

In July, Red 5 announced the mine may even be extending KOTH’s 16-year mine life with a 19 per cent increase to its underground resource.  The company reported a 130,000-ounce increase to the resource after completing 33,088 metres of underground drilling in 2020, bringing the total mine life to a possible 20.5 years.

 

Gold Road weathers plant troubles to deliver dividend

Gold Road Resources has managed a barrage of processing plant issues at the Gruyere gold joint venture in Western Australia to achieve $129.6 million in revenues during the first half of 2021.  The company’s revenue was lower than the $135.1 million it recorded in the six months to June 2020.  However, its earnings before interest, taxes, depreciation, and amortisation (EBITDA) of 46 per cent was a percentile higher than last year at $59.6 million.

The company is expecting stronger performance in the second half of the year, having dealt with plant issues in June at the Gruyere gold mine in Western Australia, which is a JV with Gold Fields.  Gruyere’s processing plant suffered a torn mill feed conveyor belt, causing temporary repairs and lower processing rates, resulting milling circuit to be shut down.  The operation’s ball mill then failed following the replacement, forcing processing to continue at a lower rate leaving only the semi-autogenous grinding (SAG) in operation. It returned to normal operations in early July.

Gold Road Chief Executive Officer Duncan Gibbs said

“Gruyere has now produced 476,648 ounces since first pouring gold on 30 June 2019,  Despite a one-off production interruption in the June quarter, Gruyere continued to deliver a strong half year profit and EBITDA to Gold Road.”

Gold Road’s exploration activity has also revealed underground potential beneath the open pit resource.

Mincor raises $60 million to fund nickel exploration

Mincor Resources has completed a $60 million placement to fund an exploration ramp-up at its Golden Mile nickel asset and construction of accommodation at the Cassini nickel mine, both in Western Australia.

Mincor managing director David Southam said the capital was already being put to use.

“$15 million has been earmarked for exploration, particularly in light of the success we have enjoyed recently with underground drilling at the Golden Mile, where we have two rigs operating, and surface drilling at location one where a diamond rig is operating,” Southam said.

A further $15 million will go towards a new, purpose-built Mincor-owned accommodation facility just 10 kilometres from Cassini.  Along with the necessary infrastructure for transport and power, Southam said this development would enable Mincor to become the strong, independent business it knew it could be.

“This is consistent with our view that Cassini will be a long-term operation that requires appropriate long-term infrastructure,” Southam said.

“It will also eliminate the need for us to continue to use a third-party operated camp in Kambalda for Cassini operations, reduce commute times, and provide important health and safety benefits for our workforce – ensuring we can continue to attract the best people to work for us.”

The new accommodation facility for Cassini with replace the need for staff to travel the 70 kilometres to and from Kambalda.

 

Mt Malcolm to list Leonora gold assets on ASX

Mt Malcolm Mines is set to be the latest in a conga line of gold explorers to ring the bell at the ASX recently after raising millions at a canter to explore for gold. The company will hit the boards at the ASX today after doing 15 separate deals in a herculean effort to consolidate 274 square kilometres of under-explored gold ground east of Leonora under one roof for the first time.

Curiously, despite their proximity to historic mining centres, the tenements are somewhat under-explored which is possibly a function of their past disparate ownership.  Mt Malcolm is planning to get the rods turning almost straight away on an initial four walk up drill targets around the old mining town of Malcolm. The company’s flagship Mt Malcolm project lies along the western margin of the lucrative Keith-Kilkenny shear which is home to multiple sizeable gold deposits in the region.

Importantly, many of the major targets identified in the Mt Malcolm ground holdings occur under cover in areas of deeply buried Archean bedrock. Management says most of these targets have seen surprisingly little or no exploration to date, although they are often close to areas of previous scrutiny.

Mt Malcolm Managing Director Trevor Dixon wears Leonora’s colours on his sleeve and has arguably licked and kicked more rocks around Leonora in search of the elusive yellow metal than anyone else.

Auroch to fast-track WA nickel sulphide projects

Nickel exploration company, ASX listed Auroch Minerals has launched scoping studies on its Nepean and Saints nickel sulphide projects in the Goldfields region of Western Australia. The studies will evaluate various mining scenarios as the company looks to fast-track the projects to production to capitalise on strong nickel prices and to build on its existing relationship with mining giant, BHP.

Ore from a historical nickel mine at Nepean was previously processed at the Kambalda nickel operations which BHP is due to re-commence next year.   The scoping studies will look to assess the potential of bringing the two projects to life and to build upon the existing Saints off-take agreement with BHP. Specialist project delivery company, P1 Australasia will manage the studies in collaboration with Auroch.

Auroch says it is looking to build a business case for generating high-grade nickel sulphide feed for BHP’s processing facilities. It aims to produce high-quality nickel products suitable for lithium-ion batteries used in the flourishing electric vehicle industry.  Saints located to the north of Kalgoorlie is 100 per cent owned by Auroch.  The 80 per cent owned Nepean lies some 25 kilometres south of Coolgardie and plays host to the historical high-grade Nepean nickel mine which churned out more than a million tonnes of ore grading close to three per cent nickel between 1970 and 1987.

Australia surpasses China in gold production

Australian gold production for the first half of 2021 was four tonnes more than China’s figures for the same period, according to Melbourne consulting group Surbiton Associates.  From January to June, Australia produced 157 tonnes of gold, with 74 tonnes in the March quarter and 83 tonnes in the June quarter.

China produced 153 tonnes of gold for the same period.

Australia’s 12 per cent increase in gold production from the March to June quarter of 2021 can be put down to new and existing operations increasing their output.  Newmont’s Boddington operation in Western Australia increased by 36,000 ounces, while the output of Evolution Mining’s Mount Carlton mine in Queensland jumped by 11,700 ounces of gold.

Capricorn Resources’ Karlawinda mine also entered the fray.

“One of the new operations was Capricorn Resources’ Karlawinda project, in the Pilbara, south-east of Newman. Its first gold was poured in the June quarter and it is ramping up to annual production of around 100,000 ounces,” Close said.

According to US Geological Survey data, China has been the world’s largest producer of gold since 2007 when it overtook South Africa. For over a decade, Australia has been the world’s second largest producer of gold.

China’s drop in gold production can be put down to work accidents including deaths, Surbiton Associates reports, with shut downs occurring as investigations took place.