SEG 45 Final_qx4 - Society of Economic Geologists

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EXPLORATION REVIEWS 22 SEG NEWSLETTER No 63 • OCTOBER 2005 ... from 21 veneer (5–20 m thick). The main exploration methodology was the ground follow-up of targets generated from data compilation from various airborne magnetic surveys. Ground follow-up consisted of ground magnetic surveys, Gradient array IP surveys, “RAB”, RC, and core drilling. This resulted in the discovery of the Otjikoto gold deposit, which is a sheeted vein system hosted by albitized rocks. This deposit has many similarities to the deposit being mined at the Navachab Gold Mine. To date some 40% of the approximately US$9M spent on the project was expended on detailed work carried out at the Otjikoto deposit which was a greenfields discovery made by Avdale. In the next year the company plans to spend US$3-4M on exploration over its four EPL’s. Regional exploration will focus on the ground follow-up of targets generated from an airborne electromagnetic and magnetic (AEM) survey that was completed earlier the year using the Spectrum 2000 AEM System. This survey covered some 70 km of strike of the target host package. This high-resolution survey was flown at a 200-m line spacing. Work at the Otjikoto will focus on extending the current resource base and the follow-up exploration targets in the immediate vicinity of the deposit. TANZANIA Barrick Gold has started production at the new Tuklawaka mine in Tanzania. Barrick and Falconbridge have finalized a joint venture agreement regarding the Kabanga nickel deposit. Falconbridge has acquired a 50% indirect interest for US$15M and will be the operator of the joint venture. PAID ADVERTISEMENT Exploration Reviews (Continued) (303) 284-2646 TUNISIA Albidon reports the discovery of gold mineralization at Kef El Agueb in northwest Tunisia on the Nefze project. Samples have defined a strike length of at least 5 km. Rock sample values ranged up to 1g/t Au in preliminary sampling and soil values up to 0.5 g/t. Some soil samples also have up to 1.1% Cu. SOUTH AFRICA Aflease is proceeding with two shallow, low-risk, high-margin gold projects, Bonanza South and Modder East. At Bonanza South, the mine design was based on an annual production of 35,000 oz, but this may increase to 50,000 oz within two years. Mining is planned to extend to a depth of 220 m to exploit two of the four gold-bearing reefs. It is planned to produce the first bar of gold in the near future. The Modder East project on the East Rand about 5 km north of Springs, is set to mine the Black Reef, which has grade of 5.3 g/t. In addition, they are developing the Dominion uranium project 25 km southwest of Klerksdorp. Anglo Platinum’s big three platinum mines in the Bushveld Complex— Amandelbult, Rustenburg, and Union—showed lower production and higher costs for the half year to June compared with the corresponding period last year. But the chief executive of the world’s largest platinum producer, Ralph Havenstein, says turnarounds take time and they anticipate much improved figures for 2006. AfriOre reports drill assay results from holes ZF6 and MO3 on the Akanani platinum project on the Platreef in the northern limb of the Bushveld Complex. Significant intersections were reported from hole MO3. The widest at 23.86 m starts at 1319.97 m down hole and averages 2.52 g/t Pt, 3.18 g/t Pd, 0.16 g/t Rh, and 0.36 g/t Au, or collectively, 6.22 g/t 4E. Included within this intersection is a 5.1 m interval grading 12.72 g/t 4E. Hole ZF6 also returned significant results, including 43.94 m, starting at 1019 m, averaging 4.1 g/t 4E, including a 7.87 m intersection grading 6.17 g/t 4E. In addition to hole ZF9, which has achieved the first downdip intersection of the Platreef unit on the Akanani property, there are currently five other drill holes are in progress on the project area, as part of the second phase of drilling. These comprise drill hole ZF8, which has intersected the upper contact of the Platreef unit at a down-the-hole depth of 889 m, and drill holes ZF10, ZF11, MO5 and MO6. Kumba Resources has introduced new jigging technology on the Sishen Exploration project which will have a plant capacity of 10 Mt/y. This will allow the iron-ore producer to process lower grade ore that is not amenable to the existing heavy minerals separation. The ore that is being currently mined has a cutoff grade of 60% Fe but the cutoff for the new jigging equipment will be 50%. The capacity to process the lower grade material will have a major impact on mining costs over the longer term and allow the company to keep the stripping ratio of about 1.9 over the life of mine. Lonmin plc, through its wholly owned subsidiary Lonmin Investments Canada Inc., completed a compulsory PROPERTY EVALUATIONS — PROJECT GENERATION GEOCON, INC. REGIONAL STUDIES — U.S. AND FOREIGN RICHARD L. NIELSEN, CONSULTANT Exploration and Mining Geology 13741 Braun Drive Golden, CO 80401 Phone/FAX (303) 279-3118 PAID ADVERTISEMENT
OCTOBER 2005 • No 63 SEG NEWSLETTER 23 acquisition of all the remaining common shares of Southern Platinum Corp. and will be named Lonmin Investments Canada Inc, which will be a wholly owned subsidiary of Lonmin plc. Lonmin has made significant progress with mechanization and automation projects. These will allow them to mine at a cost below 120 USD per tonne. The ultra-low profile (ULP) mining method will be used at the Karee mine, which will ramp up to 37,000 tpm of Merensky ore production by end 2005 and ultimately to 70,000 tpm by mid-2006. In the six months to March 2005, Lonmin produced 666.303 oz of PGM at a cost of around US$400/oz. ZAMBIA Albidon has idenitifed a strong electrical conductor that appears to be contiguous with nickel sulfide mineralization in three areas around the Munali nickel project. The strike length is 900 m and the estimated depth to the top of the conductor is 300 to 400 m. Drilling of the target is scheduled to start soon. Equinox Minerals has mandated a group of lenders to provide a total of US$305M in senior and subordinated project finance facilities for the development and construction of the Lumwana copper project located in the northwestern province of Zambia. In addition to the Lumwana senior project financing, Equinox has mandated European Investment Bank, which cofinanced the Lumwana bankable feasibility study to provide further project financing. Equinox will also be providing additional equity for the development and construction of the Lumwana project. ALASKA Regional Correspondent: Curtis J. Freeman (SEG 1996) Avalon Development Corp. P.O. Box 80268 Fairbanks, AK 99708 Tel: 907-457-5159 Fax 907-455-8069 Email: avalon@alaska.net Website: www.avalonalaska.com WESTERN ALASKA Teck Cominco’s Red Dog mine saw continued strong operating profits in the second quarter of 2005 as a result of strong Zn and Pb prices which averaged $0.55 and $0.45 per pound, respectively. Operating profit was US$9M versus an operating profit of $10M in the same period in 2004. For the quarter, the mine generated 134.4 tonnes (t) Zn and 23.7 t Pb in concentrate vs. 138.8 and 25.6 t Zn and Pb, respectively, in the 2nd quarter of 2004. NovaGold Resources and partner Placer Dome announced initial drilling results from its Donlin Creek project. The 2005 program included a 27,000-m (88,000 ft) drill program with 84 infill, geotechnical, and condemnation core holes and 25 condemnation-geotechnical reverse circulation holes. Detailed engineering, environmental, and design studies continued. Highlights included hole DC05-1013, which intersected 5 mineralized intervals totaling 160.6 m grading 6.24 gpt Au, DC05-1061, which intersected 12 mineralized intervals totaling 226.9 m grading 4.50 gpt Au and DC05-1062 which intersected 6 mineralized intervals totaling 134.3 m grading 5.33 gpt Au. Highlighting the open-ended nature of the mineralization at the ACMA portion of the deposit were holes DC05-1061, which bottomed in 54.1 m grading 5.12 gpt Au and hole DC05-1062, which bottomed in 77.3 m grading 5.24 gpt Au. St Andrew Goldfields Ltd. announced additional results from its Nixon Fork Au project near McGrath. Underground drilling results from part of the 4,973 m of underground drilling completed to date included intervals ranging from 0.9 m grading 9.6 gpt Au to 1.3 m grading 78 gpt Au. Drilling has confirmed that the J5A target now extends from the 380- to the 200-m level of the mine, while the 2204 target extends from the 390- to the 240-m level. Updated resources for the project were also released and include total measured resources of 23,400 t grading 36.8 gpt Au (27,700 oz), indicated resources of 68,000 t grading 33.2 gpt Au (72,600 oz) and inferred resources of 35,000 t grading 27.7 gpt Au (31,200 oz). The company indicated that permitting and engineering work continue with anticipated start-up of operation in late 2005 or early 2006. Alaska newcomer Metallica Resources Inc. announced that it had acquired an option from Full Metal Minerals to earn a 65% interest in the latter’s Aleutian Islands and Alaska Peninsula projects by expending $4.5M in exploration and making cash payments totaling $250,000 over five years. Metallica can earn additional interest by taking properties through feasibility. The 2005 program already in progress consists of reconnaissance geological, geochemical and geophysical surveys on the Pyramid, Zachary Bay, Kawisgag, San Diego Bay, Bee Creek, Weasel Mountain and Mallard Duck Bay porphyry prospects, as well as on a large epithermal vein system at the Apollo-Sitka, Shumagin and Centennial deposits. Welcome to Alaska, Metallica Resources! Alaska newcomer Fury Explorations Ltd. has acquired an option to earn a 45% interest in Full Metal Minerals’ Ganes Creek project near Ophir by incurring exploration expenditures totaling $3.5M over four years and making cash and share payments to Full Metal, totaling $200,000 and 800,000 shares. Additional interest can be earned by taking the project through feasibility to production. The target being explored is the source for the cobble-sized quartz with sulfide boxwork and coarse Au which are common in the district. Welcome to Alaska, Fury Explorations! Alaska newcomer Tonogold Resources, Inc. initial results on the Nyac gold project in southwestern Alaska acquired under lease from Calista Corp. To date over 1,400 samples have been collected from the Wallace, Bonanza Ridge, and Bonanza Creek prospects and four adjacent or newly recognized areas. Of the 518 surface geochemical samples reported to date for the Bonanza Ridge prospect, 58 soil grid samples ranged from 0.105 to 2.86 ppm Au. Seven rock chip samples taken during grid sampling ranged from 0.121 to 15.1 ppm Au. One rock chip sample from the Wallace prospect reported 7.2 ppm Au. Additional results are pending. Welcome to Alaska, Tonogold! EASTERN INTERIOR Teck Cominco announced that construction of the Pogo gold mine in Alaska continues to progress on schedule except for underground development work. A construction work force of over 400 is currently working on the site. On June 30 surface construction was 75% complete with underground preproduction work 30% complete. Underground productivity has been slowed by poor ground conditions in to page 24 ... EXPLORATION REVIEWS
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SEG 45 Final_qx4 - Society of Economic Geologists

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