Australia's junior explorers - The ASIA Miner

Australian Junior Explorers
1.7 BILLION TONNE MAIDEN MINERAL SAND RESOURCE
METALLICA Minerals says its inferr ed maiden
mineral resource at the Glenaladale-Stockdale
deposit within the Gippsland zircon-rutile heavy
mineral sands (HMS) project has enhanced the
southeast Victorian region as an emerging mineral
sands province. Metallica completed a drill
program at the Glenaladale main section across
a 50sqkm area, after historical drilling indicated
it was the higher grade section of the resource.
The JORC-compliant r esource estimates
the deposit hosts 1.7 billion tonnes @ 2.2%
total heavy mineral (THM) containing 38 million
tonnes of heavy mineral (HM). Metallica
50 | ASIA Miner | July/August 2011
says an inferred HMS assemblage for the resource
estimate taking in a closer spaced drill
area has shown a significant zir con component
which is the most valuable of the HMS
assemblage. This inferred resource has been
measured at 360 million tonnes @ 2.7%
THM, containing 15% zircon, 4% rutile and
50% combined titanium minerals.
The Stockdale-Glenaladale deposit is 35km
west of the town of Bair nsdale with an estimated
500-800 million tonnes of mineralized
sand ranging in grade fr om 3-4% HMS, including
14-18% zircon, 5-7% rutile and 35-
55% titanium minerals. Its exploration licences
are held by Rio Tinto, however an agreement
was signed in August 2011 for Metallica
subsidiary Oresome to explore four of the licences
with the option to pur chase a 100%
interest in the future.
Metallica’s managing director Andrew Gillies
says the mineral resource is broadly in line
with the company’s previously stated exploration
target. “We are very encouraged by the
large sixe of the r esource, its grade and the
amount of zircon in the mineral assemblage.
These factors will assist greatly in driving attractive
project economics.
“The delineation of the mineral resource is a
major milestone in our due diligence work for
the potential acquisition of the pr oject from
Rio Tinto,” he says.
The company is now working to complete a
scoping study at the site in order to gain a better
understanding of the pr oject’s potential.
Metallica has commissioned HMS specialist
consulting group RJ Robbins to complete the
study, which will form an important part of the
company’s ongoing due diligence to potentially
acquire the project from Rio. Results of the
study are expected shortly.
“Gippsland is shaping up to be a medium
grade, large tonnage HMS r esource in a favourable
location and we look forward to the
project’s indicative economics from the scoping
study,” said Andrew Gillies.
JV TO EXPAND BROWNS RANGE HREE PROJECT
NORTHERN Minerals has formalized a joint
venture (JV) with Toro Energy to expand its
flagship Browns Range HREE project in Western
Australia after the completion of due diligence
by both parties. The JV allows for
Northern Minerals to ear n up to 80% of the
mineral rights in Toro’s Northern Territory tenements,
other than uranium. The agreement
also secures the tenements adjacent to the
Browns Range pr oject to consolidate the
company’s strong land position in what’s regarded
as a highly prospective region.
“We are very excited about the expansion
of our HREE footprint at Browns Range, and
working with Toro in the region,” says Northern’s
managing director George Bauk. “We
Drilling by Metallica Minerals at the
Glenaladale main section of the
Gippsland HMS project in Victoria.
have achieved further outstanding drilling results
from our Br owns Range pr oject and
some exciting regional results with new exploration
targets. This makes the JV with Toro
even more exciting and increases our scope
to build a significant HREE mineral inventory
in the Browns Range region.”
The JV expands the company’s landholding
on the Browns Range dome and will form
part of its broader HREE exploration and development
program for this year . It covers
seven tenements over 1403sqkm in Western
Australia near the Norther n Territory border,
about 150km southeast of the township of
Halls Creek in the Tanami desert.
Northern must spend $4 million on explo-
ration during the next thr ee years to ear n a
51% interest, with the option of incr easing it
to 70% by spending an additional $2 million
up to 2017. The company may also increase
its equity again to 80% by completing a bankable
or definitive feasibility study.
Northern will commence an exploration program
across the JV tenements as soon as possible
this year, starting with airbor ne surveys.
“Our aim is to test whether the geological setting
identified at our Browns Range HREE project
continues into the NT,” says George Bauk.
Browns Range hosts a number of prospects
with high value, HREE in xenotime mineralization
including high levels of dysprosium and yttrium
which are in short supply globally.