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Exploration News
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Current Exploration News
Tap Oil says a commercial oil and gas development is likely from the Bambra field (offshore, WA) after a successful oil and gas appraisal from the Bambra-4 well. The Bambra field is interpreted to have an areal extent of 6.7 sq km, and is located only 5km from the Harriet Alpha production platform.
Metex says it expects to delineate a gold resource of at least 3 million tonnes at its Whisper and Innuendo prospects, a JV with Delta Gold, near Laverton WA. Drill intersections from an initial 25 hole program included 8m @ 14.48g/t Au, 2m @ 51.52g/t, 9m @ 9.15g/t and 4m @ 9.46g/t.
Anvil Mining NL announces further high grade intersections from its Dikulushi project in the Democratic Republic of Congo. The best copper grades were in hole DRC 25 which intersected 19 metres at 25.2% Cu. Silver assays were received for DDH 19, which was previously reported with the highest grade copper intersection to date. The silver assays for this hole include 11 metres at 979 g/t (31.5 ounces to the tonne).
These holes continue to confirm the high grade nature of the deposit as well as indicating good continuity in grade and width of the mineralised zones. The results of the remaining holes and of available silver assays will be reported in Anvil's December quarterly report.
Gippsland Resources has been granted an exploration and mining licence for the promising Porozhistoe gold deposit in Russia. The deposit reportedly contains more than 1.5 million ounces of gold @ 11.5 g/t Au. Gippsland will commence a diamond drilling program in the first half of 1998.
Aurora Gold has decided to defer its Toka Tindung gold project in Indonesia, primarily due to the slump in the gold price. Aurora will continue with aggressive exploration in order to increase the resource base.
West Oil and its British JV partner have been given first choice of blocks in an area off the coast of West Africa in return for financing a full evaluation of the area.
Xenolith Gold said exploration at its part-owned Koala prospect in Mexico had delineated a 3500m x 500m zone of altered limestone anomalous in lead, zinc, copper and silver.
Carnarvon is likely to plug and abandon its Longneck-1 exploration well offshore WA. A small 6m column of oil was discovered in poor quality reservoir rock. Carnarvon has now plugged and abandoned the last 3 wells.
Tap Oil's Woollybutt-2 appraisal well in the offshore Barrow sub-basin spudded in yesterday. This follows the successful Woollybutt-1 well which flowed 7600 barrels of oil a day in April.
Summit expects to significantly upgrade a resource estimate of uranium oxide atthe Valhalla prospect at its Mount Isa JV.A progress report said the prospect returned 'spectacular' grades, some exceeding those at the Jabiluka deposit in the NT.
BHP has commenced exploration at the Maytown Goldfield, 200km north-west of Cairns, QLD. Soil and rock chip sampling has delineated 2 broad zones with the potential for mineralisation. BHP can earn up to 80% in the JV wirh Sirocco.
ECM has commenced drilling to hopefully confirm bonanza silver grades at its Elizabeth Hill deposit at the Munni Munni project, 47km from Karratha in WA. Late last week the company shipped samples with assays ranging up to an extraordinary 37% silver. A bulk sample has been taken from the 85m exploration shaft in an area of high primary silver mineralisation. East Coast holds a 70% stake in the project.
GTR has taken a number of options over Savage resources magnesite properties in Tasmania
GMS has reported that drilling at the Pala Edra vein on the Italian island has confirmed a strike length of 500m (and open to the east). The company said deep potential was promising with continual gold and silver mineralisation confirmed over 200m vertically.
Hardman has acquired 4,675 sq. km of oil exploration areas in Uganda. Hardman, in partnership with unlisted UK company Planet Oil, will explore the northern part of the Lake Albert region, which forms part of the East African Rift basin.
Intercontinental Gold & Minerals has acquired 16 tenements within 2 large gold areas in Tanzania. The company now holds 13 tenements in the Lake Victoria greenstone belt in north-west Tanzania (similar region to Resolute's Golden Pride project) and 3 in the Lupa Goldfield in the south.
Kalgoorlie Resources is about to negotiate entry to the South Sumatra block with the Indonesian national oil company Pertamina. The block contains several old oilfields.
Kalgoorlie Resources has withdrawn from negotiations regarding the haurgeulis gas field in West Java following due diligence.
Sovereign Resources has commenced drilling its Kambalda East nickel project in WA
Lakes Oil advises that they have resumed bailing operations at their Hunters Lane No. 1 appraisal well in the Lakes Entrance oil field. Operations for December 2nd produced an estimated 70 litres of oil and 200 litres of water. It is now planned to drill up the bottom fill in the well and install screens prior to resuming flow testing.
Additionally a seepage of oil commenced flowing to surface on December 2nd in the general vicinity of the Lakes Entrance oil shaft, which was sunk by the Commonwealth Government during World War 2 in an attempt to access the area's oil reserves. Flow from the seep has been intermittent and will be monitored over the next few weeks.
Adelaide Resources has entered a JV with US-based Cyprus Amax Minerals to finance exploration over 6287 sq km of tenements on the Eyre Peninsula, part of the Gawler Craton. Cyprus can earn a 51% interest by spending $3 million over 4 years, with the right to earn 60% by spending an additional $1 million.
Cap Energy and Stirling are moving their gold and nickel interests to Zephyr in return for 20 million shares in Zephyr . Zephyr will have a significant portfolio of properties in The Philippines.
After dewatering the old shaft, ECM has discovered visible native silver at its Munni Munni JV (near karratha, WA) with Legend Mining.
Nickel potential increased at Roundtop:
Zinc mineralisation confirmed at Prairie Downs :
Caledonian has commenced an intensive program of ground geophysics on its Meretrice Zinc Project in New Caledonia. The survey will provide the principal means for targeting drilling along a 4km belt of potential stratabound, sediment hosted massive sulphide zinc-lead-silver mineralisation.
Zephyr's recent exploration at its Changning gold project in China has defined a gold resource of 6.39 million tonnes @ 1.97 g/t Au, equivalent to more than 400,000 ounces. Low labour costs and minimal overburden have helped the economics; Zephyr is looking at a 10 - 15 year mine life. Initial drilling was only to a depth of 32m and. in almost all cases, terminated within potentially ore-grade material.
Ross Mining is pleased to announce additional encouraging drilling results from the Gold Ridge Project. Results are part of an ongoing drilling programme reported on in the September Quarterly Report and confirm:
It is of significance that:-
The average grade of the new intercepts is greater than the average ore grade of the feasibility study, and this will have the potential to lower the cash operating costs per ounce of gold.
BHPP has rated Algeria as one of its prime exploration areas following a third oil strike. BHPP says oil flowed from its BSFN 2 well and the find was expected to prove commercial.
GME Resources reports significant nickel and cobalt intersections at its Murrin Murrin north area (Tomahawk prospect) in WA. Drill results include 8m @ 1.36% Ni and 0.2% Co and 8m @ 1.03% Ni and 0.06% Co .
Twenty three (23) percent of soil samples from a 9 sq km area at the Feni Project were anomalous in gold with a high of 0.5g/t Au. This area will now be surveyed using Induced Polarisation (IP) in February 1998, followed by drilling in May/June 1998. Funds are available through J.V partner New Guinea Gold Corporation (NGG).
Thirty six (36) excavator trenches at Imwauna Prospect, Normanby Project gave results of greater than 10g/t Au over narrow intervals within epithermal quartz veins. Visible gold was present in 20 trenches. Further trenching in 1998 is required to further define these veins and locate additional veins. Deep drill holes will also be necessary to test the system at depth and to determine the potential size of the system.
Pharaoh is about to commence drilling gold and nickel anomalies along a 7km x 2km region at Comet Vale, 100km north of Kalgoorlie, WA.
Resource Exploration plans to drill its St Patrick's prospect at the Mt Howe gold project, south of Laverton in WA, following encouraging rock chip sampling (up to 30m @ 0.81 g/t Au).
RRI has been awarded large concessions in the Congo; the Mongbwalu concession has a proven resource of 5.3 million tonnes @ an average 5 g/t Au with significant upside potential. Russell will have a 51% interest in partnership with the Government and a Congolese company, Okimo.
Macmin has discovered widespread gold mineralisation at its Feni project in PNG. Tests over a 9km² area showed 23% of soil samples were anomalous in gold with a high of 0.5 g/t.
Murchison has signed an agreement with the Indonesian government securing tenure over coal areas in Kalimantan; Murchison is earning a 50.1% interest in PT Singlurus by spending US$3.85 million on exploration over 3 years on the Ambor coal project.
Following a shallow orientation air core drilling programme over several prospects, the McCarron's Prospect has emerged as a target worthy of deeper reverse circulation drilling interest. McCarron's is situated on the Jimberlana Dyke at the intersection of a major north-east lineament.
Drilling results from LJA5, into lateritised ironstone over norite, contained encouraging copper results peaking at 369ppm Cu from a 4 metre composite within a 20 metre interval averaging 200ppm whilst associated nickel was 529ppm in this leached profile. 20 metres to the east in LJA3 a 4 metre composite peaked at 1,310ppm Ni. The anomalous copper values are interpreted to indicate potential for sulphides which elsewhere along the dyke have had a strong Ni-Cu association.
Jervois has discovered the rare earth scandium during recent drilling for nickel and cobalt near Port Macquarie, NSW. The current resource is 12.4 million tonnes @ 1.53% nickel equivalent.
Jervois plans to mine 50 tonnes of scandium per year, about 10% of world demand if the use of the metal in aluminium-scandium alloys by the aerospace industry increases as expected. Current price is $670 per ounce.
Moonstone has expanded into Namibia after being granted an EL covering 1000km² of water, 165km north of Luderitz.
BHP Minerals have informed MACMIN that they will cease all exploration activities in Papua New Guinea effective 5th December 1997 including closure of their local exploration office in Port Moresby. No further funding will be available for the above joint venture from BHP Minerals.
BHP Minerals have indicated that this decision is not a reflection of the merits of the Crater Mountain Project - but is a result of corporate restructuring and reductions in exploration budgets.
BHP Minerals wish to remain associated with the project and will be seeking a further partner with whom to progress exploration. If BHP Minerals assigns a part or all of its interest in the joint venture to a third party it will not in any way impact on the present terms of the joint venture insofar as MACMIN is concerned. In addition, MACMIN has a "first right of refusal" on any disposal of BHP Minerals interest in the joint venture.
The Crater Mountain project has the potential to be a major gold resource. Recent drill intersections included an interval of 115m at 1.83g/t gold which included high grade sections such as 15m at 3.43g/t gold and 3m at 14.16g/t gold. This particular hole terminated in gold mineralisation at 340m. The gold mineralisation is apparently associated with a surface gold geochemical anomaly which covers several square kilometres.
Santos has revealed the 650 Petajoule gas reserves (proved and probable) at its Barrolka project in south-west QLD as the best onshore Australian discovery since 1971. Santos hinted there could be more to come and that the size of the reserves means it now has an extra 1000 Petajoules of gas available for new contracts.
Ashton Mining of Canada Inc has released more encouraging results from its Buffalo Hills diamond prospect in Alberta. Drilling results from K14 Mini-Bulk Sampling indicate the prospect contains diamonds of commercial size, but larger samples are required to accurately assess the grade and quality. The 5 largest stones recovered weighed 0.60, 0.30, 0.28, 0.21 and 0.18 carats.
Lynas has extended its interests in the Pilbara by acquiring 100% of the Klondyke mining leases, 20km south-east of Marble bar, from Rio Tinto and others. Lynas will pay an initial $900,000 and then another $2.5 million upon announcing a mining reserve of 150,000 ounces.
Ramsgate advises that additional drilling at the Mt Kare gold project in PNG has confirmed that the western mineralised zone extends at least 1500m, more than double earlier reports. In addition, the Black Zone to the south-west is now 1.5km long, three times greater than originally thought.
Further encouraging results have been obtained from exploration on the zinc-lead Cullulla project, 40km south of Goulburn NSW. A trenching programme on the Greendale prospect, has identified a new zone of stratiform mineralisation and confirmed the potential to extend the fault related sulphide mineralisation intercepted by drilling and announced to the ASX on 10 September 1997.
Meekatharra and its JV partner in Indonesia, Teck Corp of Canada, have signed a deal with South Pacific Resources Corp of Canada to take a majority interest in 2 prospective gold projects (Masao and Mirih) in Kalimantan, Indonesia.
MEDIA STATEMENT - MINISTER FOR RESOURCES DEVELOPMENT
Western Australia's Resources Development Minister Colin Barnett has congratulated Precious Metals Australia on its joint venture with Swiss company, Glencore International, to develop a $95 million vanadium processing project at Windimurra, 80km east of Mount Magnet.
Precious Metals Australia (PMA) has announced plans to "fast track" development of its vanadium project following the positive outcome of its feasibility study. Glencore has singed a Heads of Agreement with PMA for the project and has committed $35 million towards development costs. Glencore will also provide support for debt financing the balance in return for a 51 per cent share in the project. PMA will be manager of the project.
The share price of Allegiance jumped after it announced a 62% increase in the inferred nickel and cobalt resource at its Anderson's Creek project. The new estimate is 9.74 million tonnes of 0.9% Ni and 0.05% Co.
AMX has increased its gold resource estimate at the Havana Sula project, 35km north of Kalgoorlie in WA, to 570,000 ounces. Better intersections included 14m @ 4.5 g/t Au and 11m @ 10.5 g/t. The nearby Jakarta discovery was also promising and the company is planning a resource estimate in the December quarter.
Egerton has reported significant gold mineralisation (gold mineralised breccia system with base metals)at its Santo Nina projct in the Philippines.
Voyager has entered a JV agreement with Delta Gold and Target Mining over Voyager's North Eastern Goldfields project in WA. Delta can earn a 65% interest by spending $1.5 million on exploration.
Santos has found a relatively small 200 billion cubic feet gas deposit at its Reindeer 1 well in WA's Carnarvon Basin. The discovery is uneconomic on a stand-alone basis, therefore additional exploration will be carried out.
Santos says a new significant gasfield in the Cooper-Eromanga Basin has been discovered. The Whanto-1 well flowed 4 million cubic feet of gas a day through a half-inch choke.
Troy announced that development work and planning for an early start up of the main zone at the Cornishman gold deposit near Southern Cross in WA is progressing well. A first resource estimateof 2.44 million tonnes @ 4.21 g/t Au for 331,000 ounces has been outlined.
Troy also announced that drilling had encountered 2 new zones of mineralisation at the project - in the Double "O" footwall (including 4m @8.29g/t Au from 72m, 3m @ 5.13 g/t from 87m) and in the New Find footwall (including 10m @ 2.38 g/t from 35m and 2m @ 9.95 g/t from 21m).
Alliance will not take up the option to purchase Clunes for $700,000, following disappointing exploration results. Alliance will concentrate on its nearby creswick project.
Cambrian has increased gold exploration territory near its Giant mine in Zimbabwe. Cambrian has now taken an option over Rio Tinto's One Step Mine project, 75km from Giant, in addition to several claims owned by a private individual.
GGM has announced encouraging drill results from its Konongo gold mine in Ghana; better intersections included 5m @ 16.1 g/t Au, 6m @52 g/t and 14m @ 4.9 g/t. Redevelopment of the mine is now a definite possibility.
Murchison has reported encouraging results from the initial drilling program at the Ambor coal project in East Kalimantan. The drilling delineated an indicated resource of 28 million tonnes of thermal coal at Argosari. Pre-feasibility studies for a 2mtpy operation were being prepared.
Newcrest Mining Limited today announced an inferred resource for its Ridgeway discovery. The Main Zone of the deposit is estimated to contain 28 million tonnes @ 3.3 g/t Au and 0.95% Cu, including 16 million tonnes @ 4.1 g/t Au and 1.1% Cu. Surrounding this is a Halo Zone of a further 26 million tonnes at 0.67 g/t Au and 0.50% Cu.
Ridgeway is 3km northwest of the Cadia Hill mine that Newcrest is now developing within its Cadia Mines project, 25 kilometres south of Orange in central west NSW.
Perseverance has discovered a new area of sulphide mineralisation 1.4km south of its Fosterville project in Victoria. Intersections included 18m @ 1.68 g/t Au and 6m @ 3.06 g/t.
Summit and Resolute have commenced a $1 million drilling program at the Valhalla uranium project, 40km north of Mt Isa, QLD. Valhalla has an inferred resource of 27 million lbs of uranium oxide down to 300m. The new drilling will test down to 500m.
Amadeus has struck a minor oil show in the first petroleum exploration well (Mundadjini No.1) to be drilled in the Savory basin, WA. The well will be drilled to 500m and then moved to the planned Boondawarri No.1 and Akubra No.1 wells, both in the Savory Basin.
Recent drilling at the Mt Kare gold project in PNG confirms the zone of gold mineralisation is larger than that found at the adjacent nearby Porgera mine. The western roscoelite zone had doubled to 1500m; better intersections included 7.5m @ 12.41 g/t gold equivalent and 55.6m @ 3.33 g/t. A new near-surface mineralised zone has also been discovered - this zone overlaps and extends to the east of western roscoelite; better intersections included 8.5m @ 4.58g/t and 27.5m @ 2.31g/t. A third zone, the black zone, was also discovered but has yet to be drill tested.
Mt Grace has discovered copper-gold mineralisation at its Bachelor project, 100km south of Darwin. Better drill intersections included 14m @ 1.88 g/t Au and 0.1% Cu and 12m @ 2.98 g/t Au.
Metallurgical and infill drilling has continued at the Emily Ann nickel resource. The drilling continues to establish mineable grades with assays up to 21m @ 2.34% Ni. Other intersections included 11.29m @ 3.20%Ni and 15.47m @ 4.50%Ni.
Highlands has discovered a previously unknown copper-gold resource near the Freida River project in PNG. Drill results from the first 248m of the most promising hole indicate higher grades than Freida.
BALLARAT TO DIVERSIFY EXPLORATION WITH NEW DEEP DRILLING PROGRAM
Ballarat Goldfields NL is diversifying its exploration program at the Ballarat East gold project in Victoria through a new deep diamond drilling program into the million ounce inferred resource, after receiving independent confirmation of its structural model for the historic goldfield.
Two diamond drill sections - each of around 1,700 metres drill length - are proposed to follow up previous exploration into the resource block, with particular attention focusing on the area surrounding the historic New Normanby Mine, below the old workings and within the prospective eastern limb of the important structure known as the First Chance Anticline.
Ballarat's Managing Director, Mr Andrew Woskett, said the program - the first deep drilling into the inferred resource since 1991 - was scheduled to commence in November. Each section will comprise a primary hole to 700 metres vertical depth and two or three daughter holes.
Base metals producer Exodus has reached agreement with WMC to purchase its Wilga Dam project tenements in WA. In return, Exodus will transfer to WMC 70% of its Rockwell base metal project near Broken Hill.
Ashton is spending $7.7 million to farm into a diamond project (Tsodilo licence area) in Botswana and earn a 50% interest.
Carnegie believes it may have found another "Bow River" alluvial diamond area in the Kimberleys - the Ivanhoe prospect. However, native title issues are frustrating its search.
Lone Star has reported that drilling at its Tarra gold project in Indonesia has confirmed an additional 1.2km of mineralisation.
Nimbus has commenced a new drilling program at its Dreadnought gold project, 5km south of Coolgardie,WA, to follow up the encouraging results announced in August (5m@145g/t and 5m@21.83g/t).
Lakes Oil NL advises that the Hunters Lane-1 well was this morning at a depth of 413 metres and pulling out of the hole for a bit change. Hydrocarbon shows (fluorescence) have been encountered in the Greensand target over the interval 397 to 401 metres.
The significants of this show will be evaluated after logging. The well has now penetrated granitic basement at 412 metres. It is now planned to drill a sump for electric logging tools prior to logging.
Lakes Oil is in the process of finalising with Pan Pacific Petroleum NL whereby Lakes Oil will earn a 25% interest in the drilling of the forthcoming "Tourmaline-1" well located approximately 5 km south-east of the Tubridgi Gas Field in the onshore Carnarvon Basin (EP361) Western Australia.
Merritt Mining NL has received the results from the remaining six holes from the RC program of 86 holes (SBCD1 to SBCD86) drilled by Centaur Exploration & Mining Limited.
Five of these holes have intercepts greater than 0.5% nickel with a best result of 2m at 2.64% nickel.
These results bring to 26 the RC holes with intercepts greater than 1% nickel. These occur within a zone of lower grade mineralisation with many holes in the range of 0.7 – 1.0% nickel.
Striker expects to exercise a $7.5 million underwriting agreement with Australian Gold Fields in the next few months to enable it to accelerate exploration at its Beta Creek diamond project in WA. Striker has confirmed the discovery of a new kimberlite pipe.
Ross Mining commenced a 17,500 metre Reverse Circulation (RC) drilling programme within the Gold Ridge Mining Lease in early August, 1997. This is the first exploration drilling programme undertaken by the Company since it acquired the project in April, 1995. All previous drilling was carried out for verification purposes as part of the feasibility study.
The reported results relate to drill holes designed to test a gold soil anomaly north and south of the planned haul-road exit, east of the Valehaichichi pit design. Seven lines of holes were drilled on a nominal 50 metre by 25 metre spacing with 22 holes out of a total of 36 returning mineralisation. Near surface oxide gold mineralisation has been intersected in a surface area measuring 200 metres by 150 metres, within 20 metres of the Valehaichichi pit boundary. Results are sufficiently encouraging to warrant infill and extension drilling to further define the extent of the mineralisation. The drilling programme will continue for the remainder of this calender year and will also test soil anomalies adjacent to the Kupers' and Dawsons' pit designs.
SOG has more than doubled the gold resource estimate at its Sons of Gwalia mine from 0.47 million ounces to 1.12 million ounces of total reserves and resources.
Lakes Oil NL advises that the Hunters Lane-1 well was this morning at a depth of 377 metres having cut two cores through the Greensand target zone.
The well is still in the Greensand and will be drilled to total depth prior to logging, which is anticipated late tonight. Results of core analysis should be available late Tuesday, at which time a decision as to wether to run production casing will be made.
Resolute advised it had found a new zone of gold mineralisation at its Golden pride project in Tanzania, East Africa. Best drill results included 62m @ 5.49 g/t Au and 15m @ 6.92 g/t Au. Golden pride is scheduled for commissioning in September 1998.
WDC says it has discovered 2 areas believed to be kimberlites at its Perrinvale project north-west of menzies, WA. RC drilling and rotary pan testing are scheduled for Late October.
Africwest has reported encouraging results from its drilling program at its Nangodi prospect in northern Ghana. Best results included 63m @ 4.46g/t Au and 4m @ 18.2g/t Au.
Anvil has discovered a second area of high-grade copper grades in its Dikulushi concession in the Democratic Republic of Congo. Sampling at the Kapulo project has encountered 36.5m @ 6.98%Cu.
Hunter has commenced a drilling program in WA's historic Rothesay area, 70km east of Perenjort. Hunter can earn a 51% interest from Central West Gold.
Omega and ARC have been granted an exploration block (EP409) in the Barrow sub-basin of WA's Carnarvon Basin.
FAR advised it has a 6.67% stake in a new oil field discovery in Texas - at its Goldfinger prospect where production is expected to start in October.
Santos has advised it has intersected a substantial zone (300 feet) of oil and gas pay at its 20% owned Eugene Island well in the Gulf of Mexico.
BHP Minerals have advised that the gold intersections below were encountered in Hole 2 at Crater Mountain in Papua New Guinea.
| From (m) |
To (m) |
Width (m) |
Gold g/t |
| 225 267 294 298 |
240 276 297 340 |
15 9 3 42 |
3.43 2.95 14.16 1.45 |
Between 225m and 340m the combined intersections are 69m averaging 2.63g/t Au. The total interval of 115m averaged 1.83g/t Au.
The hole was terminated at 340m, still in mineralisation.
The hole was drilled beneath significant gold in trench at surface and an extensive gold in soil anomaly. The drilling results together with the surface gold anomalism suggest a substantial body of gold mineralisation could be present.
Golden Cross Resources NL (GCR) and Imperial Mining NL (IMP), 50/50 Joint Venturers in the Cargo Project, are pleased to announce RGC Exploration Pty Limited (RGC) has farmed into the Cargo Tenement (EL 5238), 35 km SW of Orange, NSW. The Cargo Tenement is 10km west of Newcrest's high grade Ridgeway porphyry gold-copper prospect.
Working on behalf of the Cargo Joint Venture GCR geologists have identified a large porphyry system with bulk low grade copper-gold mining potential together with high grade gold veins. The Project has been brought to the point where a major deep drilling campaign is now warranted.
Pursuant to the Heads of Agreement RGC may earn a 70% interest in the Cargo Tenement by expending a total of $12.5 million over 6 years and will carry GCR/IMP, through a non-recourse loan, to a Decision to Mine subject to the following terms:
The proposed Joint Venture is subject to obtaining relevant third party consents and reconfirming the interests of certain previous holders of tenements within the area now covered by the Cargo tenement.
RGC is scheduled to commence diamond drilling in October, 1997.
As at 6am this morning the rig was rigging up and is expected to begin drilling out of the surface casing this afternoon.
This well is the second well of a two well programme to evaluate the Lakes Entrance oil field.
The well has reached a total depth of 7168 ft (2185 m). No hydrocarbons were encountered in the Blewett and Starky sands targets.
However, gas was encountered at a higher level at 2700 ft (834 m). The well will now be suspended and the rig released pending detailed evaluation of this higher sand. Should this evaluation be positive a smaller rig will be bought on site for testing.
Acacia has almost doubled its gold resources, from 1.35 million ounces to 2.46 million ounces, at its Sunrise Dam gold mine in WA. The average gold grade of the revised resource has increased from 3.7 g/t to 4.2 g/t. The resource additions occur southwest and west of the current Cleo pit and extend over about 700 metres. The mineralisation remains open to the north, south and west. Drilling is continuing in order to identify further extensions.
CIM has submitted a bid for US Exxon Coal and Minerals Co's New South Wales coal mines.
AAR has advised that follow-up work at the East Denison gold prospect in North-east Tasmania has extended the central anomalous zone by 500m to 1250m, and it remains open along strike. The program has more clearly defined the width of the anomaly at 150m and confirmed the existence of a secondary, parallel anomalous zone to the west over a 900m strike length.
Anvil has reported encouraging copper and silver assays from its Dikulushi project in the Democratic Republic of Congo. Anvil has found copper sulphide within 1m of the surface in trenches dug during the 1970's. The highest assay was 4.2m @ 33.9%Cu and 235g/t Ag.
Centamin has released some exciting drilling results from its Sukari project in Egypt. The best intersection was 4m @128g/t Au (which included 1m @ 496g/t Au). The mineralised zone is at least 70m wide in the south zone and surface work in the north zone indicates the mineralisation is 300m wide.. Only 350m of the 2.5km strike length has been drilled.
Dragon and SOG are about to commence a 66-holr drilling program at the Weld Range lateritic nickel project in WA. The main aim is to test 2 areas of thicker nickel-cobalt mineralisation for higher grade zones.
Drilling at Mt Grace's Batchelor project in the NT has intersected a breccia zone in dolomite beneath a gossan known to contain anomalous gold and tin. Better intersections include 9m @ 2.06g/t Au and 17m @ 1.83g/t.
Mt Grace is earning up to 70% from Giants Reef.
Tanganyika has just released drilling results from its Buhemba gold project, Tanzania, where drilling has added 270,000 ounces of gold to reserves which now total 747,289 ounces.
Homestake has purchased a 1200hectare wheat farm at Ravensthorpe, WA, where the Trilogy metals deposit, comprising gold, lead, zinc, copper and silver, is located. Homestake is spending $5 million on exploration to earn a 70% interest from Tectonic Resources.
Tectonic released further zinc assays yesterday which it says confirms Trilogy as a poly-metallic resource, with zinc grades over 1m intervals ranging from 2.5%-5%. The drilling results have led to a doubling in the mineralised zone to a 400m² area.
Novus has farmed into a very promising block in the Arabian Gulf. Novus will spend $10-11 million over the next 3 to 4 months(3 wells being drilled) to earn a 25% interest in the permit from a domestic subsidiary of US company Pennzoil.
Lakes Oil NL advises :
Amity's Weaber-4 appraisal well, 50km north-east of Kununurra in the NT, has flowed gas at the rate of 4.1 million cu.ft/day.
Frontier has recently farmed into this area and is earning a 15% interest by spending $2.34 million on the project.
Hillcrest has delineated a 3km² anomalous zone, containing nickel, cobalt, zinc, copper and lead, at its Red Hill prospect in the Ashburton area, WA.
Jubilee announced encouraging drill results from holes 4 and 5 drilled at the Cosmos prospect, WA. The best result was from hole 5 - 2.65m @5.8% Ni, including 1.2m @ 11.9%, from a depth of 100.8m. Hole 4 intersected 2.1m @ 1.8% Ni from 144.9m, including 0.4m @ 4.74%. Jubilee said they have added significantly to the strike length - to at least 80m - and think it is much bigger than that.
PanAust has entered a JV with BHP Minerals in the north of WA. PanAust will increase its stake in the Paterson JV from 20% to 51% by spending $120,000 over 2 years and then has the option to increase to 70%.
Petroz advises that the Buck-1 exploration well in WA-259-P offshore WA will be plugged and abandoned; no hydrocarbons were encountered.
Lakes Oil NL advises that it Codeniz#1-11 well, located in the San Joaquin Basin of California, reached its total depth of 6750 feet (2058 metres) and ran electric logs last night EST.
Evaluation of logs reveal the target Blewett Sandstone was 50 feet (15 metres) low to prognosis, and water saturated. The joint venture has accordingly decided to side-track the well in order to re-intersect the Blewett Sandstone and a Starky Sand target 1000 feet (305 metres) to the west of the present location. The Starky Sandstone underlies the Blewett Sandstone in the northern portion of the San Joaquin Basin. The Blewett Sandstone will thus be redrilled, hopefully at a higher location, in the sidetrack operation.
Metex has received excellent drilling results from its Innuendo and Whisper prospects at the Laverton JV in WA. Best results from Whisper included 8m @ 3.36 g/t Au from 0 metres and 12m @ 4.31 g/t from 44m; at Innuendo intersections included 4m @ 3.77 g/t Au from 36m and 4m @ 8.20 g/t from 80m.
The JV has also secured additional exploration tenements, one adjacent to the Granny Smith gold mine and an area believed to cover the strike extensions of the Chatterbox Shear zone, where exploration drilling is taking place.
An Indicated Resource of 2.06 million tonnes @ 4.06% Ni (83,553 tonnes of contained Ni) has been estimated by the manager, LionOre Mining. This resource estimate was made over only the initial 400m strike length of the known mineralisation; the mineralisation has been intersected over approx. 700m and the deposit remains open along strike to both the north and south.
Current work has been upgraded to a pre-feasibility study of Emily Ann - this study has commenced.
Delineation of the deposit continued to the north of the Indicated Resource. Results are awaited from RTD 092 and RTD 103.
Diamond drilling has commenced at the Mt. Nakru property in PNG. The initial hole is planned to test to a depth of 350 metres (down hole) below the significant copper intersections encountered at the Nakru 1 Prospect, in Holes 3 and 6. Hole 6 intersected a 74m interval which assayed 0.78% Cu. Hole 3 intersected a 46m interval which averaged 0.75g/t Au and 0.52% Cu.
Recent bulldozer trench sampling, conducted approximately three hundred and fifty metres to the east of proposed hole 9, gave high gold values such as 48m at 2.83g/t Au (incl 36m at 3.54g/t Au) and 30m at 2.62g/t Au. These results confirm trench values documented by a previous explorers in the late 1980's and provide further evidence that the Mt Nakru porphyry copper system is also a gold rich system.
Petroz advises that the Schilling-1 exploration well in WA-74-P offshore WA was being plugged and abandoned. No economically significant hydrocarbon shows were detected while drilling. Logs, however, indicate the presence of minor hydrocarbons in thin zones.
The RC drilling program at the Raeside gold project near Leonora has been completed. The results confirm that the Leonardo structure is a major shear zone containing significant mineralisation. At Leonardo a high-grade shoot is now open along strike and below 140m. The best intersections were 6m @ 13.50 g/t Au, 6m @ 8.61 g/t Au and 6m @ 7.70 g/t Au
Drilling north of Leonardo is at an early stage; however 2 mineralised zones, with similar characteristics to Leonardo, have been discovered.
ASHTON FINDS MORE DIAMONDS IN ALBERTA
John S. Auston, President and CEO of Ashton Mining of Canada Inc. (AMCI) is pleased to announce results of further microdiamond analyses from kimberlite pipes on the Company's Buffalo Hills project in north-central Alberta. The results are from pipes K-1A, K1B and K19 in the southwest cluster and pipes K14B and K14C adjacent to pipe K14 drilled last winter.
Best results were from pipe K14C-1 where 328 microdiamonds and 93 larger diamonds were recovered.
Pipe K14C is represented by a magnetic anomaly 300 metres northeast of the centre of pipe K14 and 250 metres east of pipe K14B. Further drilling will be required to determine the spatial relationships of these kimberlites.
Pipe K14C was found by a vertical rotary percussion drill hole reported earlier which penetrated 10 metres of glacial overburden and was abandoned at 30 metres because of water inflows. Most of the macrodiamonds in the sample are broken stones probably resulting from fracturing of larger diamonds during the drilling process. The largest two stones have maximum dimensions of 2.60 and 2.55 millimetres and weigh 0.0615 and 0.0405 carats respectively. The broken stones are generally clear whereas the two largest stones have inclusions and are slightly off-colour.
This first result from pipe K14C is very encouraging and will lead to further investigation. Larger samples will be required to evaluate the quality of stones, the grade and any resulting commercial potential.
Coolgardie has entered into an agreement with an Australian explorer in Zimbabwe, Paul Williams, under which it can earn a 75% interest in established goldfields about 100km south-east of Bulawayo.
North Ltd can earn a 75% interest in Coolgardie's Queensland zinc prospect, located 40km south of the Century project, by spending $10 million over the next 5 years.
Danae has increased its exploration exposure in Greece by farming into Crest Resources' Limogardi copper project. Danae can earn a 65% interest by spending $650,000 over 2 years.
Danae is developing the Sappes gold project in northern Greece.
Oxiana can earn up to a 55% interest in the Dimakawai tenements in The Philippines where chip sampling by Oxiana has outlined anomalous gold and copper. Oxiana will earn its interest by spending $2.5 million on exploration.
Recently listed Resource has commenced drilling at its Mt Gibson gold project, 250 km north-east of Perth and near several large gold discoveries including Kirkalocka (Sons of Gwalia) and Minjar (Normandy).
Diamond drilling of the upper portion of the Tasmania Reef resource is continuing from the 375 metre level underground. Assay results for Tasmania Reef intercepts received since the release of the June quarterly report are as follows:
| Hole | From | To | Metres | Estimated True Width (m) |
Estimated Horizontal Width (m) |
Gold Grade (g/t) |
| Western Domain | ||||||
| C37 | 277.4 | 280.5 | 3.1 | 1.69 | 1.97 | 3.33 |
| Wet Beds Domain | ||||||
| C34 | 145.8 | 146.0 | 0.2 | 0.18 | 0.21 | 7.13 |
| Central Domain | ||||||
| C38 Plus |
260.0 264.0 |
264.0 268.5 |
4.0 4.5 |
2.00 2.26 |
2.34 2.63 |
4.59 15.59 |
| C39 Plus |
117.0 127.7 |
118.0 128.9 |
1.0 1.2 |
0.93 1.11 |
1.08 1.30 |
18.20 9.91 |
| C41 | 159.5 | 164.6 | 5.1 | 3.82 | 4.46 | 17.04 |
| C42 | 139.5 | 143.3 | 3.8 | 3.46 | 4.03 | 32.04 |
| C43 | 136.9 | 143.5 | 6.6 | 5.85 | 6.83 | 33.86 |
| C45 | 207.7 | 215.3 | 7.6 | 4.61 | 5.38 | 12.22 |
| C47 | 214.8 | 218.5 | 3.7 | 2.64 | 3.08 | 7.47 |
| Calcareous Domain | ||||||
| C29 | 146.6 | 148.2 | 1.6 | 1.32 | 1.54 | 12.10 |
| C44 | 173.2 | 176.3 | 3.1 | 2.90 | 3.38 | 12.03 |
| C46 | 178.6 | 180.6 | 2.0 | 1.78 | 2.08 | 10.79 |
| Eastern Domain | ||||||
| C40 | 174.0 | 176.2 | 2.2 | 1.95 | 2.28 | 7.61 |
The results continue to be generally in line with expectations for the various domains, from west to east, within the orebody.
Lakes Oil NL advises that the following report was received from Geo Petro Resources Company, operator of the Coderniz 1-11 well, located in the North San Joaquin Basin of California.
"Rig moved on location at 5:30 p.m., Wednesday (9.30 am Thursay EST). Conductor pipe had been set when location was made. Spudded, drilled to casing point, set and cemented in surface pipe at 7.55 am (11.55 pm Thursday EST). Expect to start to drill out below surface pipe at 10.00 pm (2am Friday EST).
Lakes is planning to earn a 20% working interest in the well by contributing to the cost of the well. At this stage documentation is still being finalised.
Five mineral exploration licences have been granted in the Maralinga Tjarutja Aboriginal lands in the highly prospective Gawler Craton in the State's north west following successful access negotiations between Maralinga Tjarutja (MT) and the explorers.
Minister for Mines Stephen Baker announced today that five licences, covering a total of 6980 square kilometres, have been granted to Outback Mining and Oil Company Pty Ltd - a wholly owned subsidiary of Perth-based Merritt Mining NL.
The licence areas, located around 300 kilometres northwest of Ceduna, are in the north western section of the Craton and cover prospective basement rocks along zones of major structural complexity. Merritt believes that these zones have similar characteristics to the gold/copper mineralisation found at Olympic Dam and have the potential to host similar significant ore deposits.
"Given the potential for new mineral discoveries in the Gawler Craton it is extremely pleasing to see that arrangements can be made which not only allow the full minerals potential of the State to be realised but also provides wealth generation and employment opportunities in resources development on Aboriginal lands," Mr Baker said.
Petroz advises that the Bugle-1 exploration well in WA-259-P ofshore WA will be plugged and abandoned as a dry hole. Good quality sandstones were encountered but were entirely water-bearing.
The rig will be moved to the Buck-1 location situated on the eastern side of WA-259-P in a similar structural setting to the Stag Oil Field.
Titan Resources has recently acquired an 11% interest in Tectonic Resources NL. Tectonic has just announced a significant round of gold-copper-lead-zinc-silver assays from its Trilogy joint venture with Homestake near Ravensthorpe and also has 100 per cent control of the RAV 8 nickel project, also at Ravensthorpe, which contains an indicated and inferred resource of 109,207 tonnes grading 6.64% nickel.
The Siberia Nickel Project is located 25km northwest of the Cawse treatment plant and about 8km west of the northern Cawse nickel resources.
Drilling results continue to outline a significant lateritic nickel resource.
Centaur has completed its first program of 86 RC holes (SBDC1-SBDC86) and has reported on the first 39 of these with intersections up to 10m at 1.5% nickel and 20m at 1.0% nickel.
Results from the next 41 holes have now been received by Merritt and include intersections up to 8m at 1.13% nickel from 42m in SBDC60, 18m at 1.23% nickel from 16m in SBDC 65 and 16m at 1.18% nickel from 20m in SBDC75.
The Centaur drilling is widespaced on lines 200m apart, however, nickel mineralisation is consistent and covers some 150ha of tenements. All but four of the RC holes within the mineralised zone contain intersections with grades over 0.5% nickel. Many holes are in the range 0.7-1.0% nickel and 23 holes have intercepts over 1.0% nickel. The drill spacing does not allow a resource calculation to AusIMM classification, however, given the consistent nature of the nickel mineralisation, Merritt is of the view that there is a significant nickel resource on the Siberia tenements.
Additional drilling will be directed to delineating the higher grade zones above 1.0% nickel, to investigating the higher grade cobalt zones and to bringing the resource to AusIMM classification.
Deeper holes remain to be drilled to test the nickel sulphide potential of the basal contact zone of the ultramafic Walter Williams Formation which underlies the lateritic nickel mineralisation.
Petroz advises that the Bugle-1 exploration well in WA-259-P ofshore WA was at a depth of 1130mRT. Programmed total depth is 1748mRT. The primary objective of the well are the sandstones of Lower Cretaceous to Lower Jurassic age.
Acacia announced it had entered into a JV with Minotaur to explore 2000km2 in the southern part of the Gawler Craton. Acacia also has a JV with Aberfoyle adjacent to the Minotaur JV ground.
Helix has discovered additional large low-grade gold deposits in the Gawler Craton. Drill results confirm an extensive area(Central Tunkillia) with gold values ranging from 0.1 and 1.5 g/t gold.
It has also found some small high-grade gold in another area yet to be tested.
Jubilee Gold's share price eased back yesterday following weaker results from its third drillhole at the Cosmos prospect. Drilling at 152m intersected a barren dyke, which continued for 54m. Jubilee said it believed the dyke was reletively narrow and the company was confident that the massive sulphide mineralisation continued to the south. Results from the fourth hole now being drilled are expected within 6-7 days.
South African Anglo American has taken a 50% interest in Cambrian's Zimbabwe gold projects. Cambrian has already delineated a 275,000 ounce resource at the historic Giant mine. Tha agreement will also cover the New Found Out mining claim owned by Cambrian and Anglo's Kaltranic 3 claim.
Petroz has announced that the Schilling-1 well is at a depth of 2935mRT and is drilling ahead to test deeper objectives in the structure (predicted TD of 3300m RT). The well intersected the primary target (Sandpiper Sandstone at 2798m RT) but failed to encounter any hydrocarbons.
Normandy has agreed to farm into some of Giants Reef mining prospects in the Northern Territory. Normandy can earn up to 70% by spending $4 million over 5 years. Part of the area is located between Normandy's Orlando and White Devil mines and will be called the Grand Central JV.
The meteoric rise in Jubilee's share price continued with the price almost doubling to $1.29, increasing the market capitalisation above $100 million. Last Friday the share price was 19¢. The gains came on the back of results from the company's second drill hole announced yesterday. Drilling of a 3rd hole has commenced.
The first hole intersected massive and disseminated sulphides over 9.15m (from 125m)and returned 7.54% Ni over 3.02m, including 12.1% Ni over 1.2m. Grades in the second hole ranged between 9% and 11% in 3 intersections.
Encouraging drill results from its Cosmos nickel project resulted in Jubilee's share price jumping almost 90% to 36¢.
First pass drilling at Ganymede, 24km north of Tennant Creek, had delineated 2 copper and gold discoveries. Intersections included 6m @ 9.40 g/t Au and 6m @ 5.3% Cu. At Callisto, 1.2km east of Ganymede, results included 20m @ 2.48 g/t Au.
Recent drilling at Peak Hill has confirmed that the alteration and mineralisation have all the characteristics of a high sulphidation type epithermal environment which usually have a close association to porphyry gold-copper systems. Recent diamond drill results include PRD12 : 109.7m @ 2.14 g/t Au, 0.10% Cu from 192.3m, including 68.0m @ 3.03 g/t Au, 0.09% Cu from 219.0m and 20.0m @ 5.30 g/t Au, 0.10% Cu from 236.0m.The PRD14, 15 and 16 section drilled near the south end of the system appear to have missed the southern breccia structure and did not intersect high grade mineralisation.
Following the conclusion of further RC drilling, Glengarry has announced an inferred resource estimate for the Great Britain Deposit, 3km northwest of Charters Towers, QLD, of 2.2 million tonnes @ 1.5 g/t Au (106,000 ounces) to 100m vertical depth. Considerable potential exists to add to the resource through further drilling.
The delineation of resources at Great Britain has increased the company's total gold resources to 251,000 ounces.
A third phase of RC drilling was completed on the Mpesetia concession in Ghana to test for strike extensions and the resource potential of the Mpesetia prospect mineralisation. This latest (third) phase of drilling was designed to:
i) confirm the geological character and geometry of the known mineralised zones; and
ii) in-fill and test for strike extensions to the mineralised zones located by the first and second phase programs of RC drilling (62 holes for 5,522 metres) which were completed by the MNJV in 1996, thereby enabling an estimate of the resource potential of the Mpesetia Prospect to be prepared.
The latest 6,518m, 115 hole blade and hammer RC drilling program, results of which included 10m @ 8.20g/t, 34m @ 2.74g/t, 38m @ 2.29g/t, 32m @ 1.78g/t, 7m @ 8.72g/t, 12m @ 5.92g/t and 14m @ 4.48g/t Au, can be expected to upgrade the resource potential of the project.
Capricorn's Canadian JV partner, LionOre, announces favourable Emily Ann Nickel results. LionOre reports an initial geological nickel resource at Emily Ann prospect, Lake Johnston, WA of 2.06 million tonnes of ore @ 4.06% Ni (83,553 tonnes contained nickel) which includes 1.196 million tonnes @ 5.05% Ni. The calculation does not include mineralisation found over a distance of 300m to the north of the resource boundary.
Petroz advises that the Schilling-1 exploration well in Block WA-74-P offshore WA was spudded on 23 August. The well is located about 120km south-east of the Elang and Bayu-Undan oil and gas fields and will evaluate a four-way, fault independent structure near the confluence of the Malita Graben and the Sahul Syncline. The proposed total depth is 3225mRT and is expected to take about 4 weeks to drill and evaluate.
Cluff has recovered 244 gem-quality diamonds weighing 44.5 carats at its Streak of Luck project in northern NSW. The largest diamond was a fancy yellow weighing 0.94 carats.
Hardman has advised that Shell will farm-in to 2 of its African offshore oil plays. Shell will explore the deep-water parts of blocks 4 and 5 in the Senegal Mauritania coastal basin. Shell can earn up to 70% by completing US$2.5 million worth of seismic work and drilling 1 well.
Results from preliminary drilling near Tennant Creek in the NT sparked a flurry of buying in junior gold explorer Giants Reef, with the shares jumping 50%.The company says the Tennant Creek discoveries it has made have the potential to develop into substantial mineral deposits and more could be discovered.
Lone Star has confirmed the discovery of a new gold deposit at the Tarra prospect, 3km north of its Awak Mas gold project in Indonesia, following a series of outstanding results over wide intersections from diamond drilling. The first hole returned 20.7m @ 4.12 g/t Au from 26m and 10.5m @ 2.1 g/t from 95m. Other results included 30m @ 1.89 g/t Au from 124m, 42m @ 2.83 g/t from surface and 11.2m @ 2.12 g/t from 16.8m.
Petroz advises that the Layang-1 exploration well in Block 91-12 of the Timor Sea Zone of Cooperation will be plugged and abandoned. After encountering hydrocarbon shows, 2 cores were cut from 3204 to 3232mRT, and the well was then drilled to a total depth of 3353mRT. Hydrocarbon shows were noted in the cores, however the electric logs confirmed that the zone was water bearing.
Lynas is to farm-in to 5 exploration licenses held by General Gold Resources in the Pilbara Field, WA. Lynas can earn up to 60% by spending $560,000 over the next 3 years.
Grange has received further encouraging drill results from its Red Hill Project, 4km north-east of Kanowna Belle. The 5 holes all recorded thick intersections of low-grade gold mineralisation, including 290m @ 0.73 g/t Au, 100m @ 1.46 g/t Au, 85m @ 1.75 g/t Au and 94m @ 1.03 g/t Au.
North Mining Ltd exercised its option to acquire the Red Hill Project on 30 June 1997 by the payment of $1.5 million. Grange retains a 4% gross revenue royalty on all production after the first 85,000 ounces of gold from the tenement.
Petroz advises that the Layang-1 exploration well in Block 91-12 of the Timor Sea Zone of Cooperation is preparing to core at a depth of 3204m after encountering hydrocarbon shows. The well is located 5km west of the Kakatua and Kakatua North Fields and will evaluate a separate, tilted fault block on the Kakatua/Layang structural trend.
AWE has acquired a 25% interest in an onshore exploration block(Crown Prospect) in the Taranaki province, New Zealand. The prospect is 6km from the Waihapa oil field.
Results from a drilling program at its Giant gold prospect in Zimbabwe suggest the resource could be at least twice the 104,000 ounces estimated in March. Results include 40m true width @ 4.2 g/t Au, 46m @ 1.9 g/t Au and 25m @ 7.6 g/t Au.
Striker is commencing a drilling program to test 3 kimberlite pipes - Ashmore1 and 2, and Seppelt, in the Kimberley region of WA. The company has already announced it believes there are sufficient tonnages to support an open-cut mine with a life of at least 5 years. The most recent drilling program confirmed that large diamonds of commercial size occurred in the Ashmore 1 and 2 pipes. Ashmore 2 contained 25 metres of material with 479 carats per 100 tonnes, with the average 215 carats.
Drilling at its Daling prospect in Malaysia has intersected 3m @ 13.6 g/t Au. Target has also increased its exploration area around the historic Raub gold mine in the Malaysian State of Pahang to about 1500km2.
Africwest Gold has delineated 5 large gold soil anomalies within a 10km strike zone of its Nangodi project in northern Ghana. Results of up to 9.15g/t Au were recorded from rock chip sampling.
Mapping indicates the strike of the separate gold-bearing Zug reef in the Nangodi project area has increased to 680m, at least triple that previously known. Anomalous quartz veins, more than 3km north-east on the same trend returned rock chip assays up to 5.3 g/t Au.
Drilling has begun at the Escala gold project in Bolivia.
Centamin has commenced drilling at the Sukkari project in Egypt; best results to date include 22m @ 3.91 g/t Au including 8m @ 9.62 g/t Au. Two diamond drill rigs are testing the 2.5km long mineralised system of the Amun zone.
Eagle is about to commence drilling a 2.5km-long gold anomaly at the Wallace South prospect, near Cloncurry, QLD. Eagle is farming in to the project with Cloncurry Mining Co NL, and can earn a 75% interest by spending $1.2 million over 4 years.
Gateway has taken an option on an exploration area near Cootamundra, NSW. Preliminary sampling of the new area has returned gold values of up to 155g/t Au from old workings and rock chip sampling.
Petroz advises that the Layang-1 exploration well in Block 91-12 of the Timor Sea Zone of Cooperation was spudded on 29 July 1997. The well is expected to take about 3.5 weeks to drill and evaluate. The well is located 5km west of the Kakatua and Kakatua North Fields and will evaluate a separate, tilted fault block on the Kakatua/Layang structural trend.
Cultus Petroleum's Tenacious-1 ST1 well near the Jabiru oilfield in the Timor Sea has flowed oil at 7667 barrels a day (and gas at 4.02 million cubic feet a day) and is being "suspended as a potential future producer".
Merritt Mining NL has previously reported significant shallow nickel mineralisation from its RAB drilling programs at Siberia.
The first program of RC drilling of 86 holes (SBDC1-86) totalling 4,289 metres has now been completed and has outlined limonite nickel laterite mineralisation over an area of approximately 4 x 2 kilometres.
Results from the first 37 holes (SBDC1-37) are encouraging.
Intersections greater than 1% nickel are 2m at 1.7% from 38m in SBDC6, 10m at 1.5% from 40m to end of hole in SBDC8, 20m at 1.0% from 20m in SBDC28, 10m at 1.25% from 30m in SBDC29 and 6m at 1.24% from 38m in SBDC32. Other intersections include 10m at 0.84% from 28m in SBDC35, 16m at 0.82% from 16m in SBDC36 and 34m at 0.80% from 16m in SBDC37.
Results of the remaining holes (SBDC38-86) will be advised when received.
GME says drilling has defined lateritic nickel mineralisation at its Murrin Murrin, Mertonvale and Waite Kauri projects, all within 25km of Anaconda's Murrin Murrin nickel project. GME's total resource is 8.1 million tonnes @ 1.04% Ni and 0.076% Co.
Jubilee has identified a 5km-long nickel rich belt on its Kathleen Valley project near Leinster, WA. The ultramafic unit is anomalous in Ni, cobalt,copper, chrome, platinum and palladium. The highly mineralised cap rock area, named Cosmos, included 10m at 1.1% Ni, and 11m @ 0.23% Co.
Helix's share price fell almost 10% yesterday after it released further ambiguous exploration results from its Tunkillia prospect in the Gawler Craton. Helix reports that while it has defined much more gold, it is spread too thinly over a 4km length. Drilling indicates there is a higher grade feature in the southern zone which may contain 'high grade plunging ore shoots'. Helix will not attempt to estimate reserves or resources for another 6 months.
Leo Shield has entered into two further farm-in/joint venture agreements with a subsidiary of Ashanti Goldfields Company Limited ("Ashanti") whereby Leo Shield can earn up to an 80% interest (72% after allowing for the 10% reserved for the Government) in two prospecting licence areas, Agroyesum and Mpatasie, in Ghana. These agreements are on similar terms to the five previous agreements with Ashanti which were announced on 14 February 1997.
AMX Resources says it has discovered a new area of gold at its Jakarta prospect, 30km north of Kalgoorlie. Drilling produced grades of 9m @ 5.1 g/t Au and 4m @ 6.6 g/t Au. In addition, metallurgical tests at its nearby Suva and Havana prospects have achieved gold recoveries of greater than 94%. The 3 prospects have been renamed Golden Cities.
Johnson's Well says it has discovered a new gold deposit at Rosemont in the Duketon Belt on tenements it acquired through a JV with Aurora Gold and Delta Gold. The best results include 29m @ 23g/t Au from a depth of 109m.
The company also says a combined mineral resource estimate of 579,000 ounces of gold has been outlined at its Famous Blue and Erlistoun sites near Rosemont.
Continuous and consistent high grade gold documented by deep trench sampling at Imwauna Prospect, Normanby Project, Papua New Guinea
Initial gold assay results from 49 deep excavator trenches at the Imwauna Vein Swarm have shown very high grades within narrow but laterally extensive epithermal, quartz veins. Trench 39 recorded 0.6m at 223g/t Au (duplicate sample recorded 45g/t Au). Weighted assay averages of epithermal quartz vein and adjacent wall rock produced results such as 2.84m of 13.50g/t Au and 2.85m of 11.79g/t Au.
The Porgera gold JV in PNG has increased proved and probable reserves by more than 1.2 million ounces to 11.6 million ounces. The estimated resource has increased by 18%.
Cambrian has acquired the rights to an additional 248km² covering greenstone formations near the Giant mine project area in Zimbabwe.
Equigold has delineated a large gold anomaly at itsKokoumbo lease in Ivory Coast, with assays of up to 9.35 g/t Au.
GRA has entered a JV with a Russian company, Geopoisk, covering the Maldyak gold deposit. Previous work by Russian geologists has delineated an estimated resource of 1.1 million ounces at an average grade of 3.8 g/t Au. Preliminary studies indicate the deposit could be mined by open-pit methods.
High-grade gold intersections adjacent to the Kookaburra gold deposit in the WA sector of the Granites-Tanami province have been encountered at the Sandpiper Prospect. Drilling has outlined a continuously mineralised zone along a 350m strike length which remains open along strike and down dip. Better intersections included 59m @ 5.49 g/t Au from 170m - including 9m @ 9.58g/t Au and 11m @ 10.83 g/t Au and 15m @ 4.37g/t Au from 120m including 3m @10.31 g/t Au.
At the Haek prospect, 1.5km north of Kookaburra, RAB and RC drilling also returned highly encouraging results including 36m @ 2.56g/t Au including 3m @ 9.74 g/t and 14m @ 3.72g/t.
Kanowna has an inferred nickel resource of 50 million tonnes at an average grade of 0.7%Ni-Co at its Pinnacles project, 130km east of Kalgoorlie. Intersections included 36m @ 0.98% Ni and 30m @ 1.06% Ni. Kanowna says the deposit could be mined by open cut methods to a depth of 80m.
Lone Star has announced significant gold and base metal results from its Tarra prospect, 3km from its Awak Mas deposit in Indonesia. Sampling returned continuous mineralisation at an average grade of 2.68g/t Auplus significant base metal values.
WDC has failed to find any diamonds in the first phase of its testing program at Sturt Meadows, WA. It will now explore for kimberlites over a 100km strike length from Lake Raeside to Lake Ballard.
BHP has agreed to farm out some of its prospective tenements in WA's Pilbara region to Croesus and Gindalbie, who will form a JV to explore for copper and gold. BHP retains the right to claw-back into the Anketell JV if they discover a world-class deposit by paying triple their exploration costs.
Merritt has excellent exploration projects in WA and SA. The Gawler Craton is the largest previously unexplored gold belt in the world. Its potential has only just been recognised with early gold discoveries at Challenger and Tunkillia. Merritt has over 20,000 square kilometres of the Gawler Craton, the second largest tenement holding there. This will require systematic and continued exploration for some time and Merritt is committed to do this. Merritt is also continuing with its WA projects.
North is on the acquisition trail as part of a plan to double its zinc production to 100,000 tonnes in 3 years.
Petroz has advised that it has increased significantly the reserves for the Silver Springs/Renlim Fields in the Surat Basin following the successful implementation of a pilot dewatering project. The additional proven plus probable (2P) reserves (16 PJ of Sales Gas, 500,000 ST Barrels of Condensate and 75,000 tonnes of LPG) approximately double the 2P reserves of the fields. It is proposed that the project will now be expanded.
Haoma has acquired several tenements in the Ravenswood area in north QLD from Placer Pacific and Goldfields. These tenements held significant potential for additional feed for its Nolan's mill and also stand-alone heap leaching.
Pan Aust has delineated a 156m copper-mineralised zone at its Ivy Ann deposit, located in the Cameron River project, Qld. Drilling results included 37m @ 1.4% Cu and 8m @ 2.0% Cu. RC drilling along strike at Ivy Ann North confirmed the mineralisation continued for a further 2km.
Drilling has shown the Ivy Ann deposit is similar to nearby low-grade Ernest Henry and high-grade Eloise copper mines.
Santos has discovered what it says is its most significant gas discovery in 20 years in the Cooper basin, with the potential for several hundred billion cubic feet of gas. Gas flow from the Beeree-1 exploration well in the Barrolka field was 84,950 cubic metres a day from an open hole flow test.
The flow of positive exploration results continues for Queensland-based Macmin NL, with latest drilling further enhancing the potential of its 50%-owned Texas silver discovery in Queensland and upgrading one of its gold discoveries in Papua New Guinea.
Macmin said today (Tuesday) a further 22 reverse circulation (RC) drill holes completed at the Mt Gunyan and Twin Hills prospects at Texas had encountered additional gold and silver mineralisation, with silver values of up to 1,100 g/t and gold values of up to 8.5 g/t (each over a 2 metre interval).
At Mt Gunyan, best results included 4 metres at 4.32 g/t gold and 108 g/t silver from 14 metres, 8 metres at 0.59 g/t gold and 344 g/t silver from 78 metres (including 2 metres at 1.23 g/t gold and 1,100 g/t silver).
Zinc assays of greater than 1% were also encountered in several holes below 70 metres (maximum 2.86% zinc over 2 metres). High-grade silver and gold mineralisation including two 4 metre wide intervals of 11.58 g/t gold and 34 g/t silver, and 7.36 g/t gold and 55 g/t silver were previously encountered in this zone.
"It is possible that further exploration may lead to the discovery of significant zinc and lead, similar to the previously mined Silver Spur massive sulphide mine - which had a zinc, lead and copper content of between 20% and 30%, as well as high-grade silver and gold," said Macmin's Managing Director, Mr Bob McNeil.
"We are encouraged by the continuing flow of good results at Texas, which has further extended the boundaries of known mineralisation," he said. "However, further drilling will be required to fully understand the geometry of the mineralisation and establish a resource estimate."
The Texas project is a joint venture between Macmin (50%) and Perth-based Hunter Exploration NL (50%).
Macmin also announced encouraging results from another joint venture between the two companies, the Sehulea project on Normanby Island, Papua New Guinea (Macmin 75%, Hunter 25%, earning 50%).
Mr McNeil said drilling at the Weioko prospect - which has already produced a series of encouraging results - had confirmed the presence of a significant body of near-surface gold mineralisation and extended the known gold mineralisation by a further 120 metres to the north for a total strike length of over 400 metres.
Similar grades to those previously encountered were intersected from a 7-hole program, with best results including 8 metres at 2.34 g/t gold, 12 metres at 1.12 g/t and 20 metres at 1 g/t. These gold values occur within a large halo of lower grade gold.
"A significant body of mineralisation has now been defined with the characteristics of a low sulphidation, epithermal gold and silver system," Mr McNeil said. "The mineralisation is open to the north-east beneath alluvial cover, in certain areas at depth, and possibly to the south-west."
Macmin and its partner New Guinea Gold Corporation have already defined a 200,000 ounce gold resource at the nearby Imwauna prospect. Additional potential for bulk mineable resources within trucking distance occur in the many gold and arsenic soil anomalies within 4-5 kilometres of Weioko.
Recent reconnaissance exploration at one such prospect, Sipupu, 3 kilometres to the north-east, has defined an apparently continuous zone with more than 400 metres strike length. Encouraging results such as 4.89 g/t gold over 1.6 metres have been returned from surface evaluation.
Elsewhere in PNG, drilling is underway at the Sinivit gold project and the Crater Mountain copper/gold project. Once the current drilling program at Sinivit is completed, several 300 metre drill holes will be undertaken at the Mt Nakru copper/gold project.
"Macmin is continuing with an active exploration program in PNG for both copper and gold," Mr McNeil said.
"We believe PNG has an outstanding future as an emerging mining nation," he added. "It has been attracting increasing interest recently with the successful development of the Lihir mine and with the negative industry reaction to the Busang fraud and the onerous conditions of the 7th Generation Contract in Indonesia."
"Macmin's PNG projects are all advanced exploration projects which can be regarded as the end product of a countrywide exploration effort by Exxon Minerals and City Resources which saw some $60 million spent in the 1980s. The prospect of further success is regarded as excellent."
Santos has acquired a 20% interest in 2 wells under a farm-in arrangement at a frontier oil exploration site in eastern Irian Jaya. The wells are located at the Warim Production Sharing Contract owned by Conoco Inc and are on the same thrust and foldbelt as the Kutubu and Gobe oilfields. Six wells have been drilled, with 5 showing oil.
An Amity-led consortium has been granted a petroleum exploration permit in the Busselton region of the Perth basin. The permit includes the undeveloped Whicher Range gas field.
Leo Shield has acquired options to additional gold areas in Mali., 58km south-east of the rich Sadiola gold mine. The tenements, covering 16 km², are part of an area that has known artisanal gold mining for several decades, and French geological work has delineated numerous gold anomalies within Leo Shield's new areas.
Livingstone has reported high-grade gold intersections from drilling at the Livingstone Find project north-west of meekatharra, WA. Intersections included 5m @20.8 g/t Au (including 1m @ 44 g/t Au), 25m @ 2.03 g/t Au and 8m @ 3.51 g/t Au. Livingstone said the results confirmed the economic potential of the area.
Mt Kersey has been granted 17 mining leases adjacent to the Silver swan nickel prospect at Gindalbie, WA. The company is about to drill for high-grade nickel sulphide mineralisation following a detailed airborne magnetic survey which identified several targets.
Capricorn announces southern and northern continuation of Emily Ann nickel sulphide deposit following recent drilling at the Roundtop JV :
A BRIEF EXPLORATION UPDATE
Much has been achieved in a short time. Exploration as proposed in the Company's Prospectus is on track and preliminary results are encouraging.
Current exploration can be regarded as semi-mature with focus on 2 locations, the Gawler Craton in South Australia and the Dargo Region of Victoria. The Company has been involved in aggressive exploration at these locations for approximately 2.5 years.
Anvil has found a major resource company to fund its Dikulushi project in the Democratic Republic of Congo, where 1.6 million tonnes of near-surface mineralisation, containing an estimated 176,000 tonnes of copper and 480 tonnes of silver, has been delineated.
GEM shareholders have approved the acquisition of the Kundana gold project, 25km west of Kalgoorlie in an attempt to find additional reserves to supplement the 390,000 ounces of gold in a resource at Siberia, 60km to the north.
GNM has applied for 5 exploration permits in the Irvinebank and Herberton areas in north Queensland.
Drilling has commenced at the Crater Mountain project in Papua New Guinea.
The project is a joint venture between MACMIN and BHP Minerals Ltd ("BHP") whereby BHP may earn 80% of the project by sole funding exploration until completion of a Bankable Feasibility Study. BHP is operator of the project.
Prima has entered a JV to explore the old Lebong Donok mine in Bengkulu province, Sumatra, relying on new Canadian data that indicates the possibility of discovery of high-grade pillars that others have so far failed to locate. Prima also hold the nearby Tambang Sawah area where drilling has defined a gold resource of 1.1 million tonnes@ an average 2.3g/t Au.
Resolute has announced encouraging drilling results at its Indee project, 60km south-west of Port Hedland. Significant gold mineralisation was encountered at the Camel1 and 2 prospects, including 22m@6.8g/t Au, 9m@10.1g/t Au and 27m@ 2.3g/t Au. Resolute believes they have discovered another significant zone of gold mineralisation as there is no previous gold working along that line of mineralisation. Mineralisation at both prospects remains open in all directions and 2 other soil anomalies have been defined on another area south of the Camel prospects and they appear to be extensive, with strikes up to 9km long.
Following the infill RC drilling program completed at Abore North in May, Golden Knight Resources Inc has announced that it is expected to upgrade the resource estimate and continue metallurgical and engineering studies on the project. The infill drilling, latest results of which included 34m @ 3.20g/t, 30m @ 2.80g/t, 58m @ 1.40g/t, 12m @ 3.01g/t and 38m @ 1.82g/t Au, can be expected to upgrade a portion of the previously announced Abore North resource estimate from inferred to indicated status.
CWG says visible gold is present in most of the 17 holes drilled at the Rothsay mine, 300km north of Perth. Intersections included 6m@ 10.06g/t Au, 2m@ 21.73g/t Au and 6m@ 7.57g/t Au.
Crest advises that drilling at the Miriam and Bouchers projects in WA has intersected nickel sulphides. At Bouchers, 1 hole intersected 2m@ 1.4% Ni, 1.7% Cu and 0.5g/t Au.
Fimiston has acquired a parcel of ground (Jackie's Bore) just along from Great Central Mine's Jundee mine and Eagle Mining's Nimary operation in WA. It also juts into land where Wiluna has been drilling its high-grade gold mineralised shear zone(Desert Dragon Trend - 3m@ 24.1g/t Au).
Initial intersections include 3m@ 3.21g/t Au and 11m@ 1.85g/t Au. Wiluna is earning a 60% interest by completing a mine feasibility study within 3 years.
Nexus has reported high-grade gold intersections from drilling at the Tampia Hill project in WA. Intersections included 12m @ 25.2g/t Au, 13m @ 4.14 g/t Au and 27m @ 3.78g/t Au.. Gold mineralisation appeared to be contained in multiple zones, some of which were up to 30m in width.
Petroz advises that the Hingkip-1 exploration well in Block 91-12 of the Timor sea Zone of Cooperation has encountered a gross gas column of approximately 85 metres.
The Hingkip-1 well is located on a prominent structural trend north of the Bayu-Undan Gas/Condensate Field, 6.6km north of the Undan-1 well and 9.9km north of the Bayu-4 well. Preliminary analysis suggest a higher liquid content in the gas at Hingkip compared to the Bayu-Undan Field.
An improved bio-oxidation process for extracting gold will be tested on Rhodes' Lahoca mine. A pilot plant in which big volumes of air will be circulated in finely crushed ore, hopefully accelerating the bio-oxidation process.
Tanganyika says 45 of 59 holes drilled on the Buslowa prospect in Tanzania have intersected significant mineralisation including 28m@ 2.32g/t Au, 4m@ 6.78g/t Au and 16m@ 3.03g/t Au.
The company has also reached an agreement whereby an Anglo American subsidiary will enter a JV at Tanganyika's 6 tenements in the Lupa goldfield, paying a US$1 million fee and spending US$6.25 million over 4 years to earn a 60% interest in 3 tenements it elects to retain.
SMC has announced it has upgraded the resource at the operation near Charters Towers, QLD.
Herald has agreed to enter into a joint venture agreement with Croesus Mining NL to explore the Mystery Mint area NW of Coolgardie. Herald can earn up to 75% equity by spending up to $1 million within 5 years.
A recent program of drilling and bulldozer trenching has enhanced the economic potential of the project and defined a zone of porphyry copper/gold mineralisation over an area of 4-5 square kilometres which is still open ended to the north and south.
Drilling results were very encouraging, with copper, gold and molybdenum mineralisation intersected in most holes.
Best results included 36 metres at 0.7% copper with 0.1g/t gold and 77 metres (entire hole) at 0.5% copper with 0.11g/t gold. One hole, drill hole 12, encountered low-grade copper/gold mineralisation throughout the hole to its termination at 276.6 metres and averaged 0.33% copper with 0.06g/t gold; which included a best intersection of 0.54% copper with 0.05g/t gold between 21.5m and 46.4m downhole.
Ashton Mining of Canada has reported further encouraging diamond results from 4 pipes(K5B, K7A, K7B and K7C) in the Buffalo Hills property in Alberta. The incidence of microdiamonds and 1 macrodiamond in pipe K5B is encouraging as is the further indication of microdiamonds and macrodiamonds in pipe K6.
Drilling has commenced at the Sinivit Gold Project formerly known as "Wild Dog", south of Rabaul, East New Britain Province, Papua New Guinea. At the Sinivit Project, extensive exploration by earlier explorers defined a resource of 810,000t at 5.05g/t Au within a 10km long structure that is extensively mineralised with quartz, low grade gold, telluride and copper mineralisation. The resource lies within a 2km section at the northern end of the structure.
New Guinea Gold has identified a significant gold anomalous zone to the east of the Simuku Project within the new Whiteman Range Project in Papua New Guinea, during a study of data from previous exploration. Thirteen stream sediment pan concentrate values ranged from 1.0 to 233g/t Au and define a gold anomalous area 40 square kms in area .
Yukon Revenue Mines Limited will commence an exploration program on the AUREX claims(MAYO MINING DISTRICT YUKON TERRITORY, CANADA) in early June, 1997. This program will consist of prospecting, geological mapping, soil geochemistry and trenching by bulldozer or backhoe. Targets are geophysical anomalies acquired by an airborne geophysical survey flown by Aerodat Inc. in July, 1996.
The AUREX claims consist of 157 Quartz Mining Claims totalling 8,266 acres (3,345 hectares) in area. They are located on the western end of the historic Keno Hill silver camp, which has produced two hundred million ounces of silver since 1913.
Petroz advises that Hingkip-1 exploration well in Block 91-12 of the Timor Sea ZOC was spudded on 6 June 1997. The planned total depth is 3,305mRT. The well is expected to take about 4 weeks to drill and evaluate.
BHP has signed an $81.15 million deal with Algeria's state-run oil company Sonatrach, covering the Boukhechba area, north-west of Illizi basin, for 10 years. 8 wells are expected to be drilled.
BHPP says wireline logging at its Buffalo-2 well off north Australia confirms the presence of hydrocarbons within the Elang formation.
It also says it has an encouraging but not yet commercial hydrocarbon find in the northern Sahara desert in Algeria, with a well test at 5700 barrels of oil a day.
Recoverable reserves of oil at Cornea have been suggested at 100-400 million barrels and sometimes 500 million barrels. Cultus says 'at the end of the day' the recovered reserves will be 'almost the same figure (300-400 million barrels) but the range is new' and (with this new range) 'the upside is huge...the downside is the more comfortable level'.
Danae holds high hopes for possible bonanza gold mineralisation at its 51%-owned Sappes project in Greece, after firstdrill results have identified a high-grade epithermal resource at the Viper prospect. The best intersections included 37m@53.27g/t Au and 11m@11.52g/t Au.
Petsec Energy has been awarded 1 of the 3 leases for which it bid at the Louisiana Gulf Coast lease sale. The West Cameron 653 lease has an unrisked reserve potential of 66 billion cubic feet of gas.
AGM has boosted its total resource at Mt Henry (Norseman region, WA) to more than 800,000 ounces of gold following additional drilling. RC drilling has located 'a potential new goldfield' with 'potential' of at least 2 million ounces.
Results from a nineteen hole RC drilling program at the Edubia - Asuadai prospect on the Abori concession in Ghana have highlighted the potential for the 4 kilometre soil geochemical and trenching anomaly running from Dome Beposo to Asuadai to host significant levels of gold mineralisation. This anomaly is part of a larger zone of mineralisation stretching for 18km from the southern border of the Abori concession, through the Manso Nkwanta Joint Venture's Essuowin concession, into the Moseaso concession.
Assay results from the Edubia - Asuadai drilling program, included 8m @ 3.6g/t and 7m @ 2.50g/t Au , 24m @ 1.27g/t and 17m @ 2.03g/t Au , 41m @ 1.48g/t Au from surface and 16m @ 3.45g/t Au . All holes drilled intersected mineralisation and there is good potential to deliniate a continuation of the mineralisation with deeper drilling.
Mosaic announced the first major gas find in the Surat Basin(Qld) for more than a decade. Production tests from the Downlands 2 well in the Bainbilla Block indicated initial estimated reserves at between 12 and 32 billion cu. ft with estimated recoverable reserves ranging from 12 bcf to 24 bcf. The structure had 2 roughly equal culminations which were "most likely joined" but reserve estimates depended on determining whether 1 or both were filled with gas.
Gilt-Edged has increased its resource estimate at Siberia by 38% and is moving to meeting its target of establishing a gold mine within 2 years.
Early drill tests indicate the Moran oil field in PNG will outstrip the Kutubu and Gobe fields. Drilling since mid-1996 has established an oil column 642 metres in depth, 3 times the size of the Kutubu column.
Shares in Cluff more than doubled yesterday after confirming it had recovered 56 gem-quality diamonds from its Streak of Luck mine at Copeton, NSW. The diamonds recovered averaged 4 to the carat.. The find included 2 other diamonds in excess if three quarters of a carat and an additional 5 were found in excess of half a carat.
Union Mining NL announces final results of the first-phase drill program at the Igwageta epithermal gold prospect on Fergusson Island, confirming a third potential geologic resource of gold mineralisation on the Company's properties in Papua New Guinea. Gold resources have already been identified at the Wapolu and Gameta prospects on Fergusson Island.
At Igwageta, significant to strong mineralisation was encountered in 29 of the 46 reverse-circulation drill holes (totalling 2,135.5 metres) which provide the initial tests of the prospect's defined targets, all six of which intersected zones of significant gold mineralisation.
Astro and Quantum have won the right to explore for diamonds in China's Liaoning Province and to gain a 70% interest in any mine that is developed. The area includes the highly prospective Wafangdian region, but not (at this stage) the 100,000 carat a year operating diamond mine at its heart.
Ashton's Canadian subsidiary has released further positive assay results from its Buffalo Hills diamond property in northern Alberta. Microdiamonds have been found in 6 of the 7 pipes analysed so far.
Promising diamond drilling results at the Buffalo Hills project in Alberta had shown that 1 of the 3 pipes had a "significant content of micro-diamonds and macro-diamonds"
Diamond drill hole PRD6 at Peak Hill (NSW) was recently completed at 377 metres and assay results compiled. PRD6 intersected altered andesite volcanics on the west side of the Proprietary ore body before penetrating the intensely altered volcanics hosting the silica-sulphide mineralisation.
Assay results from the hole have again indicated substantial gold mineralisation and include 152.8m @1.49g/t Au, from 224.2m , including 20m@4.46g/t Au from 317m.True widths are approximately 50% of intersected intervals.
Hole PRD6 is the deepest intersection achieved within the mine area to date and has demonstrated continuity of the higher grade mineralisation to a vertical depth of at least 300 metres, 225 metres vertically below the planned floor of the oxide open cut.
Santos has identified another new gas field in South Australia's Cooper-Eromanga Basins with the successful flow of the Goyder 2 well.
Chairman and Chief Executive Officer David G. Walsh said: "Bre-X is devastated that the Strathcona analysis does not confirm earlier analytical work done by Bre-X. The report instead indicates that the Company's belief about the size of the Busang II reserve was based on falsified data." ...."We share the shock and dismay of our shareholders and others that the gold we thought we had at Busang now appears not to be there," Mr. Walsh said.
Anaconda has increased its nickel resources after further drilling success. The indicated resource is now 7 million tonnes@ 1.08% Ni and 0.08% Co, up from 6.7 million tonnes@1.10% Ni and 0.08% Co.
Petroz advises that the Downlands-2 exploration well drilled in ATP-471-P in the Surat Basin flowed gas at the rate slightly over 10 million cubic feet per day through a ½ inch choke. Flowing pressure was 1,590 psi. The Downlands-1 well drilled earlier this year was not tested due to mechanical difficulties.
Centaur has announced a major new gold discovery, known as Federal and located in the company's Woodcutters tenements near Kalgoorlie, WA. Best results were 28m@ 9.1g/t Au.
RE: TEXAS PROJECT - DRILLING PROGRAM COMMENCES
MACMIN N.L. announces that a program of RC drilling has commenced on the Texas Project in south-east Queensland. The drilling program will target the Mt Gunyan gold-silver Prospect and the Twin Hills silver Prospect.
At Mt Gunyan, significant gold, silver, lead and zinc mineralisation, from two reconnaissance RC holes drilled in January, will be tested for 500m along strike. The up-dip and across strike potential of the gold mineralisation intersected in hole MG1 will be the first area tested in order to ascertain the geometry of the mineralised zone.
At Twin Hills, drilling will focus on structural targets which may host high grade silver mineralisation. These targets have not been tested to date due to topographic constraints which have now been overcome.
Ashton has recovered significant micro and macro diamonds from 1 of 11 pipes so far discovered at its Buffalo Hills prospect in Alberta, Canada. Samples from pipe K14 averaged 50 micro diamonds from each of three 50kg samples, and included some macro diamonds. Samples from 2 other pipes, some distance from K14, recorded only 1 micro diamond per sample.
AKD has purchased a further 10 gold prospects in Peru totalling 51,700 hectares, through its Peruvian subsidiary Minera Andes del Norte. AKD subsidiary Terrace Gold has exercised an option to acquire all of Minera from Cortez Gold Mines.
Preliminary drilling results from its Woollybutt exploration project in the Carnarvon Basin off the coast of WA have shown the presence of a gross hydrocarbon column of a minimum of 11m and up to 17m. Tap is holding high hopes for a commercial oil discovery.
DRILLING AT SIMUKU PORPHYRY PROJECT IN PAPUA NEW GUINEA INTERSECTS COPPER AND MOLYBDENUM
Diamond core drill hole no. 12 sited 90 metres east of hole 7, had reached a depth of 182.5 metres. The hole intersected quartz sericite alteration from surface to 91.3 metres and potassic alteration below 91.3 metres. Copper and molybdenum mineralization is present in the core and assays will be available in 3 to 4 weeks.
Carpenter advised it has identified wide ranging and extremely high grade gold intersections at its Mt Kare gold project in Papua New Guinea. The results included 32m @ 308g/t Au and resulted in a more than doubling of Carpenter's share price to 38¢. Of the 10 holes drilled so far other promising intersections included 39m@ 9.64g/t Au, 40.5m@ 4.37g/t and 73.9m@ 1.8g/t. The company says Mt Kare is exhibiting the same gold mineralisation structure and character as the 24 million ounce Porgera gold mine, located 15km to the north-east.
Encouraging drilling results from the Cornishman JV gold project (Sons of Gwalia 51%) at Southern Cross sent shares in Troy up almost 30%. The wide bands of high-grade mineralisation extended the strike length from 900m to 1400m; the deposit appeared to contain a number of gold-bearing zones stacked on top of each other.
Woodside announced that preliminary indications from drilling its Alaria#1 well, to 3538m, in WA's North-West Shelf failed to find any significant hydrocarbons
Cons Gold has reached an agreement with Stockdale Prospecting (the Australian exploration arm of De Beers) allowing Stockdale to earn a 60% interest in any diamond occurrence on 1 or 2 properties in the North Coolgardie Mineral Field.
Dragon has reached an agreement with Stockdale Prospecting (the Australian exploration arm of De Beers) allowing Stockdale to earn an initial 51% interest in any diamond occurrence on its properties by spending $1.5 million on exploration on Dragon's West Pilbara tenements.
New Guinea Gold Reports Exploration Progress And Plans
Drilling has now resumed at the Simuku copper gold project in Papua New Guinea. An exceptionally "wet" wet season caused delays in the January - March period including a complete shut down of the rig for 4 weeks. NGG is drilling a 300m diamond core hole at Simuku, designed to test the depth of copper and gold mineralization.
Following this test, the drill rig will be moved to the gold project at Sinivit (Wild Dog) in East New Britain, PNG. The gold at Sinivit is associated with quartz, telluride, and copper mineralization (similar to the Emperor system in Fiji) and is analogous to the Martha Hill vein system in New Zealand, which contained a resource of 5.8M ozs Au. Esso discovered the Sinivit mineralisation in 1983. Since then, exploration has defined a corridor approximately 10km by 3km which is highly prospective for high grade, vein controlled gold mineralisation with excellent potential to define a multi-million ounce telluride gold resource.
Mosaic says its Downlands #2 well in the Surat Basin in Qld has intersected 7 metres of net gas pay, in the Permian Tinowan Section, with good reservoir quality (at 1900m depth). The well has been suspended as a gas discovery.
Pan Aust has detected a new discontinuous gold zone more than 7km long and 600m wide at its Yilgarn project in WA. Drilling at 2 anomalies has intersected mineralisation with best intersections of up to 3.1 g/t Au.
Santos says it has discovered a new gas field in the Victorian section of the Otway Basin. The wildcat well Fenton Creek#1 in PEP 108, a JV with Cultus, has flowed gas on a drill stem test at 169,900 cubic metres/day, accompanied by 6.9 kilolitres (43 barrels) of condensate a day.
Caledonian has intersected significant gold mineralisation north of the old Fernhill Mine in New Caledonia. Initial RC drilling of a 250m long anomaly has intersected 16m@6.1g/t Au and12m@3.57g/t Au. Caledonian says these intercepts confirm the northward extension of high-grade gold mineralisation within the 50 to 60 metre Fernhill zone.
As a result, a new 41 km² exploration licence has been applied for.
Lakes Oil NL advises that the Triodia-1 well commenced drilling at 11.00 pm on Saturday 5 April 1997 and at 8.00 am this morning was at a depth of 180 metres and is waiting on cement having set surface casing. Triodia-1 is located in ATP568P, Eromanga Basin approximately 20 kilometres southwest of Tintaburra oilfield.
Alliance has announced that the first phase of diamond drilling at Nuggety Prospect is nearing completion.
The 8 holes completed at Nuggety have intersected a very large reef structure associated with a synclinal fold.
The first drill intersection was recently announced and included a 2.7m drilled length interval with visible gold, which averaged 42g/t Au. Subsequent intersections have had variable but encouraging gold values mainly in 'seamy' quartz and hornfels-quartz breccia close to the east and west bounding faults. Assay results include 0.7m@6.4g/t Au and 0.8m@80g/t Au.
An initial program of hydrogeochemical sampling of water bores within the Creswick-Shelbourne project in Victoria has been completed.
A key outcome is that a number of the water samples were anomalous in gold, copper, lead and zinc and consequently follow-up work to better define these areas is in progress.
Caledonian has announced RC drilling results at Nundle, on the Peel Fault; promising gold intersections included 5m@5.86 g/t Au. Caledonian has subsequently commenced a detailed surface sampling program from Trevena prospect to Bond Reef.
Capricorn has encountered additional nickel intersections at the Roundtop JV (37.5% Forrestania Gold). Mineralisation was intersected some 400 metres north of Emily Ann (the major prospect).
Helix reports that it has uncovered substantial gold mineralisation at its Tunkillia prospect in the Gawler Craton. The strike length of the mineralisation has been extended but the grades were a little disappointing according to several analysts. Helix's share price closed down 40.5¢ at $3.45.
Beach has received further positive results from a deeper drilling program in the South Burbank unit in the US. Good oil shows have been encountered throughout most of the Mississippi Limestone section from 902m to 999m.
Anzoil says it has encountered 2 gas-bearing intervals at its Song Tra Ly D14-3 well in Vietnam.
Lakes Oil reports that as at 2 pm today its Petro Tech-1 appraisal well, located within the Lakes Entrance Oil Field, was at a depth of 388.3 metres, and in the process of recovering core-1, cut over the interval 379.5 - 388.3 metres. This is the first of two cores planned for evaluation of the Greensand Reservoir of the field. Oil fluorescence has been noted in the exposed base of the core. These cores are being cut to evaluate the suitability of the reservoir for enhanced recovery by means of steam injection.
Lakes Oil NL wishes to announce that the Petro Tech No. 1 well is currently at a depth of 8 metres. Target depth of 382 metres is expected to be reached early next week.
RE: DRILLING RESULTS, TEXAS PROJECT
MACMIN N.L. is pleased to announce results of further reverse circulation (RC) drilling within the Texas Project. Drilling completed since the end of last quarter was designed to determine the strike length of silver mineralisation within the Twin Hills Prospect. Two wide spaced and deep reverse circulation drillholes within the Mt Gunyan Prospect tested the sub-surface nature and grades of a large surface zone anomalous in base and precious metals. Results of this and previous drilling programs completed by the Joint Venture upgrade the potential for economic silver and gold mineralisation within a large mineralised system.
Intersections at Twin Hills include:
THP61: 4m from 120m at 600 g/t silver and 2.10 g/t gold (approx. equivalent to 11 g/t gold).
Drilling at Twin Hills has now indicated that the silver/gold mineralisation has potential strike length of at least 900m, with two reconnaissance drillholes 300m to the south of all drilling to date intersecting anomalous gold and silver zones - best:
THP63: 6m from 22m at 145 g/t silver.
At Mt Gunyan, the two reconnaissance RC drillholes intersected significant gold, silver, lead and zinc mineralisation in intensely silicified siltstones. Results from the program include:
MGP1: 4m from 130m at 11.58 g/t gold, 34 g/t silver (including 2m at 22.65 g/t gold) and 4m from 156m at 7.36 g/t gold and 55 g/t silver.
The results are particularly encouraging given the very limited earlier exploration. A large precious and base metal mineralised zone appears to exist at Mt Gunyan -it may represent a more gold-rich section of the overall Texas mineralised system. Future exploration will focus on detailed geological mapping and soil sampling in an attempt to identify mineralisation controls and further drilling targets.
RE: Promising porphyry copper mineralisation intersected in drill holes at Simuku Project, West New Britain, Papua New Guinea.
SUMMARY
Drilling completed at the Simuku Project in late 1996 intersected potentially economic copper values. This project is a joint venture between MACMIN N.L. and New Guinea Gold Corporation.
Hole 7 (Figures 1 & 2) which was a 63 metre Reverse Circulation hole, intersected mineralisation throughout its entire length and was terminated (due to ground conditions) in potentially economic copper grades. A 47 metre section between 16m and 63m (end of hole) averaged 0.58% Cu, 80ppm Mo and 0.11g/t Au. The entire hole averaged 0.5% Cu, 64ppm Mo and 0.11g/t Au.
Petroz advises that the Kakatua North-1A exploration well in Block 91-12 of the Timor Sea Zone of Cooperation has been suspended as a future oil producer. It is expected that the well will have a positive impact on the development of the Elang/Kakatua Oilfields.
Petroz also advises that the Border-1 well located in EP399 in the Carnarvon Basin of WA is being plugged and abandoned after failing to encounter hydrocarbons.
Leo Shield Exploration Ghana Limited ("Leo Shield") has entered into a series of farm-in/joint venture agreements with subsidiaries of Ashanti Goldfields Company Limited ("Ashanti") whereby Leo Shield can earn up to an 80% interest (72% after allowing for the 10% reserved for the Government) in five prospecting licences and one reconnaissance licence in Ghana.
Petroz has advised that the Kakatua North-1 exploration well in block 91-12 of the Timor Sea Zone of Cooperation has encountered a gross hydrocarbon column of approx. 70metres.
MERRITT INCREASES GAWLER CRATON HOLDINGS TO 15,000 KM2
Merritt Mining NL is purchasing all the shares in Outback Mining and Oil Company Pty Ltd which will become a wholly owned subsidiary of Merritt.
Outback holds interests in 13 exploration licences in the Gawler Craton, SA.
Merritt now has tenements covering more than 15,000km2, one of the larger holdings in the Gawler Craton.
CENTAUR MINING & EXPLORATION LIMITED OPTIONS SIBERIA NICKEL PROJECT
Merritt is pleased to announce that Merritt (50%) and Sand Queen (50%) have reached an agreement with Centaur Mining & Exploration Limited which allows Centaur to purchase an 80% interest in the Siberia Nickel Project for $2.0 million.
Siberia is located west of the Cawse nickel-cobalt project which is being brought into production by Centaur.
Merritt has drilled widespaced RAB holes at Siberia to discover a significant nickel resource. Several holes in the centre of the resource have intersections greater than 1.0% nickel. All drill results over 0.5% nickel have been reported.
The RC drilling is planned for early 1997.
Cultus has advised that oil shows have been recorded after drilling in the Cornea field (Browse Basin), located about 100km inland between Broome and Wyndham. One of the partners, Shell Development (Aust) says 'we believe this oil and gas accumulation could be comparable in size to other recent discoveries in the Greater North West Shelf on the initial information we possess'.
Alliance advises assay results for the recently announced reef intersection containing visible gold at Nuggetty Prospect, Maldon, Victoria.
Only a small part of the reef has so far been assayed.
The auriferous zone in DDH57W1 has a drill length of 2.73m and averages 42.2 grams (uncut) of gold per tonne. This includes a 0.35m section which contains 187.5 grams of gold per tonne.
The hole is continuing to drill in highly mineralised quartz and is yet to reach the western margin of the reef.
Further assay results will be advised when received.
Moonstone says it has recovered a significant haul of diamonds during mining trials off South Africa. It has found 376 gems weighing 127.29 carats, with the largest being 2.379 carats.
Stockdale in $3m Diamond Search
PMA Gold Pty Ltd has entered into an agreement with Stockdale Prospecting Limited to investigate the diamond potential of some of its Kimberley tenements surrounding the Palm Springs Gold Mine. The search will also aid PMA's gold exploration, as Stockdale is required to collect geochemical samples for assay by PMA.
Stockdale has the exclusive right to explore for diamonds and can earn a 51% interest in any diamonds by spending $1,500,000 and a further $1,500,000 to earn an additional 24%. PMA may contribute to expenditure to avoid dilution below 49%.
Alliance has announced that the first drillhole (DDH 57) at its Nuggetty Prospect in Maldon, central Victoria, has intersected Nuggetty Reef.
The drillhole has intersected a massive, highly mineralised quartz reef which to date totals 15m in drill length. Gold is visible in the first 3 continuous metres of the quartz on the eastern margin of the reef. The hole is yet to be sampled and assayed.
DRILLING RESULTS SUGGEST LARGE BODY OF NEAR SURFACE GOLD MINERALISATION AT WEIOKO PROSPECT, PAPUA NEW GUINEA
Results from the initial 13 holes at Weioko Prospect were released on 11th December 1996. Results from a further 10 holes are now available. These results are characterised by very wide intervals of low grade gold, e.g. 0 to 72m in hole 14 averaged 0.96g/t Au (entire hole), with numerous narrower zones of higher grade mineralisation that grade between 1 and 7g/t Au. Previous results were similar and slightly higher grade, eg., 70m at 1.29g/t Au (+8g/t Ag), 28m at 2.08g/t Au and numerous additional higher grade narrower intervals.
The Weioko system appears to have considerable size potential and is open in most directions including at depth.
DRILLING AT TWIN HILLS PROSPECT, TEXAS QUEENSLAND, EXTENDS KNOWN SILVER/GOLD MINERALISATION
Results for a further 11 holes are now available, all contain significant intersections, and drilling continues.
Intersections included 14m at 292g/t Ag and 0.19g/t Au (4.0g/t Au equivalent) and 38m at 85.1g/t Ag and 1.29g/t Au (2.38g/t Au equivalent). The overall mineralised zone at a 50g/t Ag cut off is consistently 20 to 30m true width and multiple "ore grade" zones are locally present. The mineralisation is partly defined at surface by a 1km long anomalous silver soil anomaly. Most of the prospective anomalous zone remains to be drill tested.
Gawler Craton explorer Desertstone announced a promising drilling report with rumours of visible gold being encountered. Assays are yet to be received. The stock price almost doubled and the stock price of nearby Stuart Metals NL rose almost 70%.
Shares in Troy hit a 9-year high yesterday after highly promising drill results at its Three Rivers find.
Shares fell in Eastern following the latest assay results from the T'Boli prospect in the Philippines. The company says the complex geology means that it is unable to come to any firm conclusion about the nature of the gold mineralisation until more work was carried out.
Sierra de las Minas - Argentina
Duketon Goldfields NL and Yukon Revenue Mines Limited have been awarded the international tender by the Provincial Governor of La Rioja pursuant to Decree No 1.827 dated 26 December 1996. Duketon and Yukon Revenue also applied for two further exploration licences to the west of the tender area covering 130 square kilometres. The total area under control of Duketon and Yukon Revenue is 457 square kilometres (45,700 hectares).
The project area has the potential to host a multi-million ounce gold resource on the property.
EURIA PROJECT, GAWLER CRATON, SA
Merritt Mining NL has received this afternoon the results of its first 2,536m shallow RAB drilling program on its 100% held Euria exploration licence located northwest of Ceduna in the Gawler Craton, SA.
Results from drill holes in these zones show significant geochemical values up to 13ppb gold and 255ppm copper against very low backgrounds of less than 2ppb gold and less than 15ppm copper.
These results are encouraging given the limited drilling on the tenement so far. For the first time in this area, altered and sulphide mineralised systems have been discovered within a major structural zone which is interpreted from the aeromagnetics as a complex demagnetised linear feature.
Gulf of Mexico oil producer PetSec has made another discovery at its West Cameron 544 lease in the USA, just a week after reporting a new oil show in the same lease. The oil and gas discovery, in the A-8 exploration well, is on top of last week's report; the well has encountered a total of 13 metres of net gas pay and 8 metres of net oil pay in 2 zones, and will be completed as a producing well.
Troy has linked the results of latest drilling at its Cornishment gold prospect in Western Australia to a rise in its share price. Troy has substantially extended the strike length of the Triple O mineralisation to about 950 metres.
Santos has reported a new gas find in the Cooper-Eromanga Basins in South Australia as well as oil shows in the UK North Sea after exploration drilling there.
Santos believes a gas find at an exploration well (Judga North-1) in the Queensland part of the Cooper/Eromanga Basins is an indication of the potential of the field.
Alliance has announced that it has increased its gold Resource to 120,000 ounces by defining a new Inferred Resource of some 50,000 ounces within the Eaglehawk Reef at Alliance South Prospect, Maldon, Victoria.
The new Inferred Resource comprises approx. 140,000 tonnes @ 11g/t Au.
The Resource extends some 200m down plunge to the south from the southern limit of historical workings of the Alliance Mine. It has a vertical extent of approx. 150m and is open both along strike to the south and vertically.
Dominion expects good drill results from its JV with Resolute Samantha at the Challenger Prospect in the Gawler Craton, SA. Dominion says there is no doubt it will be a gold mine, but it's a question of how big.
Auridiam has announced a join venture deal with a South African diamond miner thus allowing further testing on its Botswana holdings.
Highlands is to reassess the resource estimate at the prospective Frieda-Nena copper-gold project in Papua New Guinea as a result of additional drilling. The results, from a 4-hole drilling program carried out within the boundary of the Horse-Ivaal deposit, indicate additional mineralisation and higher assay values for copper and gold.
Beach's second well in its South Burbank field in Oklahoma in the US is to be completed as an oil producing well. The well has flowed at a rate of 6.6 barrels an hour.
GME and Australian Gold Fields have announced a JV for the Clermont gold prospects in Queensland where 3 broad zones of anomalous gold have been identified.
Wiluna has made a new gold discovery which it hopes will increase production and profitability at its Bulletin mine in WA's Pilbara. Drilling had encountered a number of significant gold intersections which could extend the orebody and drastically reduce operating costs.
Woodside has made another significant gas discovery in its North West Shelf gas fields but will not know the true potential until drilling resumes after the passing of tropical cyclone Rachel.
Bligh has announced a second discovery in Texas. Gas shows and log data at its Lost Bear well in the Rainosek prospect, 140km west of Houston, indicate several pay zones that suggest the presence of high-pressure gas and condensate.
FAS has recorded its best flow test since beginning its oil exploration program in the US. Its well at South Lake Raccourci has tested at a rate of 5.26 million cubic feet of gas and 687 barrels of oil a day.
Drilling results at the Kossanke prospect in West Africa show that mineralisation is prospective, delineating a zone of structurally contained auriferous quartz veins which is known to extend south into the tenement of Iamgold-Ashanti Goldfields Co.
The company, prospecting for platinum group metals at Copper Hills, 350km east of Newman in WA, has announced exciting assay results from its trenching program; a chip in the PM trench assayed 543ppm Platinum and 333ppm of palladium. The Pt assay is the world's highest reading in a single chip.
Mosaic and Oil Search will be equal partners in a newly awarded prospecting licence (No. 193) in Papua New Guinea. The area consists of 70 blocks and covers part of the former licemces PPL-163 and all of PPL-171. Oil Search is the operator with 30%.
SIGNIFICANT DIAMOND DRILLING RESULTS INCLUDING 4 METRES @ 136.27 G/T Au IN FKD004, FRENCH KISS PROJECT, KARONIE W.A.
Infill diamond drilling of the zone during the December quarter has confirmed continuity of high grade mineralisation and has provided clearer structural definition.
Seven diamond holes have been completed for the quarter with final results received for five holes. Drill holes FKD 008 and 009 are still awaiting assays, however both holes have intersected sheared massive sulphide mineralisation within the target zones.
EURIA PROJECT, GAWLER CRATON, SA
The RAB program ended on 20 December 1996 after drilling 2,536m in 74 holes and will resume as soon as a suitable rig is available.
Most holes were drilled on two northwesterly trending traverses across the regional northeasterly striking Moornaba Shear, about 22 kilometres apart. A third short traverse was drilled across a northerly splay fault associated with the major structure. Hole spacing along each traverse is generally 200m, with three infill holes at 100m and one at 50m.
Merritt is extremely encouraged by the geology intersected in this first orientation drilling. Surface cover over Archaean and Proterozoic rocks averaged less than 20m and was commonly less than 10m.
Sulphide mineralisation was intersected in adjacent holes ERB42 and ERB46, 100m apart on the most eastern Euria Well traverse, within haematitic granite at the interpreted position of the Moornaba Shear and close to the granite-gneiss contact. The sulphides occur irregularly as pyritic clumps and aggregates within a zone of quartz-veined granite from 50m to the ends of both holes at 69m.
Disseminated pyritic sulphides were also intersected on the Fig Tree Corner traverse 22km to the west, again on the interpreted Moornaba Shear position. In hole ERB66, weak sulphide mineralisation was recorded from 27m to the end of hole at 37m in a siliceous, brecciated, haematitic contact zone between granite and gneiss.
Merritt's drill holes are the first discovery of mineralisation and alteration in this area and are associated with major shearing.
Exploration will be continuing through 1997.
Brokers attributed share gains in Comet to the company's interest in a nickel project which has revealed some 'good results'.
McNICOL-1
Lakes Oil NL, operator of PEL57, South Australia, advises that Oil Drilling and Exploration''s Rig 30 is concluding rigging up at the McNicol-1 site, and the well is expected to spud tomorrow, Friday 3rd.
The McNicol-1 well is designed as a test of the Upper Cretaceous Age Flaxman''s/Waarre Formation sands, which produce at the nearby Caroline carbon dioxide field, and in the Victorian fields located in the vicinity of Port Campbell. The McNicol feature has the potential to entrap up to 56 BCF of gas (recoverable, unrisked) if filled to spill point. Programmed total depth is 1500 metres. The location straddles the Tartwaup Fault Zone and is located 6km east of Mt. Gambier.
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