Tyranna kicks off resource drilling at SA gold play
ASX listed gold developer Tyranna Resources is looking to boost its 319,000 ounce gold resource at the emerging Jumbuck gold project located west of BHP’s Olympic Dam mine, in the highly prospective Western Gawler Craton in SA.
This week the company launched into an infill drilling campaign at its Campfire Bore prospect at Jumbuck aimed partly at upgrading the existing inferred mineral resource to an indicated category.
The current mineral resource at Campfire Bore sits at 2.78 million tonnes grading 1.2g/t gold for 109,000 ounces.
The Campfire Bore mineralisation is one of several prospects that make up the company’s larger Jumbuck gold project that holds 8.7 million tonnes for 319,000 gold ounces.
The chessboard has changed somewhat for Tyranna in the last month or so, with one of its partners in the Western Gawler Craton JV agreement, WPG Resources calling in the administrators.
WPG has been struggling to keep its Challenger gold operation afloat for some time and the mine is surrounded on all sides by the JV ground, which is managed by Tyranna.
The Challenger gold operation is about 40km south of the Campfire Bore prospect and has reportedly produced over 1 million ounces since commencing in 2002.
Various iterations may play out from here, however Tyranna is strongly focussed on proving up as much gold-bearing dirt in the region as possible as it builds its own critical mass of mineral resources in the broader region.
The company controls nearly 10,000 square kilometres of exploration tenements around the mine, which are a combination of 100%-owned tenure and the joint-ventured ground holdings.
In keeping with the strategy of building up new gold resources in the region, management has delayed its maiden exploratory drilling at the South Hilga prospect, to focus on expanding its gold inventory for existing deposits.
Outside of the Jumbuck project, Tyranna is gearing up for its resource development drill program at the Eureka project north of Kalgoorlie in WA where it hopes to add new ounces outside of an historical open pit resource.
The company also retains just under a 25% holding in the Wilcherry JV project located west of Port Augusta in South Australia.
The majority owner of that project is Alliance Resources and is located west of Port Augusta in SA.
Alliance recently announced a maiden mineral resource estimate of 1.1 million tonnes grading 5.1g/t for 181,000 ounces of gold for the flagship Weednanna deposit at the Wilcherry JV project.
In the US, Tyranna also recently executed an agreement to acquire 100% of a company called US Cobalt and it now controls some very prospective looking ground at the Goodsprings cobalt and base metals project, located 50km southwest of Las Vegas in southern Nevada.
The company also has a stake in ASX listed Kairos Minerals, who is developing promising gold projects in the Pilbara and Goldfields regions of WA.
For now though, shareholders will no doubt be watching with great interest what Tyranna manages to unearth at its drilling programs for the Jumbuck and Eureka gold projects over the next few months.
Drilling Commences at Jumbuck - Campfire Bore Gold Prospect
Directors of Tyranna Resources Limited (ASX: TYX, or The Company), as manager of the Western Gawler Craton Joint Venture which includes WPG Resources Ltd (ASX: WPG) (TYX 78% - WPG 22% refer Figure 2) and Coombedown Resources Pty Ltd (TYX 70% - WPG 20%, CBD 10% - refer Figure 2) are pleased to announce the commencement of RC drilling at the Campfire Bore Gold Prospect, located approximately 40km north of the Challenger Gold Mine and part of the larger Jumbuck Gold Project in the Northern Gawler Block of South Australia.
On 30 July 2018, Tyranna’s joint venture partner WPG Resources Ltd (WPG) announced to the ASX that it had appointed Ernst & Young as Voluntary Administrators and on 8 August 2018 WPG also announced that RSM Australia Partners had been appointed as Receivers and Managers. As a result of this development, Tyranna has been in consultation with relevant stakeholders including the appointed Receivers and Managers and the Adminstrator of WPG.
Furthermore the Board of Tyranna has revised the drill programme previously announced on 20 July 2018. The Campfire Bore drilling programme will proceed with approximately 2,000 metres of infill RC drilling, but the maiden drill programme at South Hilga will not proceed in this campaign. The focus of this drilling campaign will be to complete infill drilling to upgrade the JORC status of Campfire Bore from the inferred to indicated category.
High-Grade Maiden Mineral Resource 181,000 oz @ 5.1 g/t gold Weednanna Deposit
Mineral Resource open at depth / down plunge
- Maiden Mineral Resource Estimate of 1.097 Mt @ 5.1 g/t gold for 181,000 oz gold confirms Weednanna as a quality gold deposit with outstanding economic potential
- The reported Mineral Resource is that proportion of gold contained within $2,000 AUD pit shells (>0.5 g/t gold) and >2.0 g/t gold underground potential
- Significant potential to increase the size of the Mineral Resource with further drilling as all 13 modelled gold shoots are open at in at least one direction
- 83% of Mineral Resource occurs within 120 metres of surface (1,253 ounces per vertical metre) and is readily accessible using open pit or underground mining techniques
- Potential exists for new gold shoots not included in current Mineral Resource, e.g. previously announced major mineralised quartz vein
- Maiden mineral resource delivered 18 months after first drilling by the joint venture with a low discovery cost equivalent to $7.90 per ounce gold
Alliance Resources Ltd (Alliance) is pleased to announce a Maiden Mineral Resource Estimate for the Weednanna Gold Deposit, part of the Wilcherry Project Joint Venture between Alliance (75.01%) and Tyranna Resources Ltd (ASX: TYX) (24.99%), located 40 km NNE of the township of Kimba, South Australia.
Alliance Managing Director Steve Johnston said “the delivery of a maiden Mineral Resource is a significant milestone for the Company and confirms Weednanna as a quality gold deposit with outstanding economic potential”.
“This is the first step towards establishing the Wilcherry Project area as an emerging gold-producing district in South Australia.”
Mining One Pty Limited has been engaged by Alliance to undertake the following scope of works:
- Review the geology and mineralisation interpretations completed by the Alliance technical team;
- Complete a site visit to review site protocols, discuss technical aspects with site team and JORC requirements;
- Review the technical dataset that will support the JORC 2012 resource, including drilling and sampling QAQC, density measurements and assaying methodologies;
- Complete a mineral resource estimate utilising the supplied geological interpretation and all relevant drilling and sampling data;
- Compile a resource estimation report and sign off as per JORC 2012 guidelines; and
- Run open pit optimisations on the Mineral Resource and derive underground potential above an appropriate cut-off grade.
The global resource at various cut-off grades are shown in Table 1.
Approximately 45% of the Mineral Resource >0.5 g/t Au has been classified as Indicated and 55% classified as Inferred. The Indicated classification corresponds with areas of higher drilling density and the Inferred classification with areas of lower drilling density. Therefore, the Inferred Mineral Resource reflects both modelled gold shoots with limited drilling and a decrease in the density of drilling with depth.
The dimensions of the Mineral Resource area are 1,100m (north-south), 500m (east-west) and from surface to a maximum depth of 200m. The bulk of the Mineral Resource (83%) occurs within 120m of surface where there is a higher drilling density, representing a gold endowment of 1,253 ounces per vertical metre (OPVM). The overall gold endowment is 900 OPVM which reflects the abovementioned lower density of drilling with depth.
All gold shoots contributing to the Mineral Resource are open either at depth, or down plunge.
In addition, there are zones within the top 100m of the Mineral Resource area that lack drilling and which have potential for the discovery of new gold shoots based on historical drilling.
Extensional drilling and drilling at depth is planned to identify additional gold mineralisation and infill drilling is planned to upgrade the Inferred Mineral Resource to the Indicated category.
Open pit optimisation studies were completed on the Mineral Resource using Whittle software, with mining and processing cost assumptions provided by Mining One (Table 2). These were run at Australian dollar gold prices ranging between $1,200 and $2,500. For the purpose of reporting resources the $2,000 AUD gold price case was selected as appropriate given the August 2018 gold price of approximately $1,600 AUD (Table 3).
SIGNS AGREEMENT TO ACQUIRE GOODSPRINGS COBALT & BASE METALS PROJECT, NEVADA USA
- Tyranna executes agreement to acquire 100% of US Cobalt following due diligence and option exercise
- Acquisition to be funded via issue of Tyranna shares to vendor, subject to shareholder approval
- Stream sampling highlights very high grade Cobalt assays over 7% at Whale
- Geological study commissioned to strengthen multiple base metals targets
- Located in stable and mining friendly Nevada, United States
- Two highly credentialed strategic and technical advisors in Mr Klaus Eckhof and Mr Greg Smith
Tyranna Resources Limited (ASX: TYX) (‘Tyranna’ or ‘the Company’), is pleased to advise shareholders it has executed the agreement for the 100% acquisition of the private company US Cobalt Pty Ltd ('US Cobalt'), the owner of the Goodsprings Cobalt and Base Metals Project, located in the State of Nevada, USA. The acquisition will be subject to shareholder approval at a general meeting of shareholders to be held on 21 September 2018 and a notice of meeting will be sent to shareholders today.
The Company previously announced that it has entered into a binding option agreement to acquire US Cobalt (refer ASX announcement 22 March 2018) and the acquisition forms part of Tyranna’s diversification strategy, aimed at capitalising on the battery minerals revolution which has seen the rapid rise in the LME price of Cobalt from US$23,000/ton in March 2016 to a high of US$95,000/ton on 21 March 2018 (Cobalt traded at US$64,000 on 17 August 2018).
Tyranna Managing Director, Bruno Seneque stated, “This is an outstanding deal for Tyranna and our shareholders which we have secured via a scrip issue. Historical mining results suggest that this area holds some of the highest grade Cobalt mines that can be found in the district. In the 1920’s the mines in this area produced approximately 20 tonnes of Cobalt rich ore from copper mining and historical grades were reported between 6% and 29%1 . No modern mining techniques have been used here and we are confident that good exploration and mining methods will handsomely reward the Company here at Goodsprings.
The acquisition of US Cobalt adds Goodsprings Cobalt and Base Metals Project as another high value asset to Tyranna’s project portfolio and enhances our value as a diversified resources exploration and development company.”
The Goodsprings Cobalt and Base Metals Project comprises 329 mining claims covering 6,580 acres located within the Goodsprings mining district in southern Nevada, 48 kms southwest of Las Vegas and approximately 8 kms west of the town of Jean and 3.2 kms southwest of the town of Goodsprings, Nevada.
Following the Company’s due diligence over US Cobalt as part of the Option Agreement (refer ASX Announcement 22 March 2018), Tyranna Resources has agreed to acquire 100% of US Cobalt by way of an off-market scrip for scrip takeover which is subject to the approval of Tyranna Resources shareholders.
Key commercial terms include:
- Cash payment of $100,000 for exclusive option agreement (Completed)
- Due diligence (Completed)
- Tyranna to issue 141,176,470 ordinary shares in Tyranna Resources Ltd at deemed price of $0.017. The shares will be issued following shareholder approval. 25% of the consideration shares issued by Tyranna Resources to the vendors of US Cobalt will be subject to voluntary escrow arrangements for a period ending 20 February 2019.
- The issue of 10 million and 20 million options (TYXOC) to Mr Greg Smith and Mr Paul Lloyd respectively. The options will be issued following shareholder approval.