Gold exploration company, King River Resources Limited (ASX: KRR) has the following projects in its portfolio:
- Mt Remarkable
- Treasure Creek
- Speewah Specialty Metals Project
Let’s take a look at the recent updates of these project.
Mt Remarkable Project
The company has so far received encouraging results from the reconnaissance exploration program conducted at Mt Remarkable in the East Kimberley Western Australia.
In an update provided on 23 September 2019, the company confirmed that it has discovered multiple new vein sets at the project. Additionally, the assay results have also returned anomalous gold/silver values (Au, Ag, Bi) from seven of those vein sets.
The company received the best results from an east west striking quartz-adularia vein set. The rock chip samples returned results up to 0.42g/t Au and 11.9g/t Ag. Currently, the company is engaged in the follow-up reconnaissance and soil sampling program at the project.
Last year, the drilling at the high-grade Trudi Vein returned multiple, very high gold intersections, which included:
- 4m @ 113.29g/t Au including 1m @ 346g/t Au in KMRC78
- 6m @ 60g/t Au including 2.8m @ 108g/t Au in KMDD01
- 4m @ 36.77g/t Au from 7m including 1m @ 70.9g/t Au in KMRC127
- 4m @ 39.78g/t Au including 1m @ 82.7g/t Au in KMRC75
- 3m @ 34.8g/t Au including 1m @ 50.5g/t Au in KMRC0077
The company is planning to commence drilling at Mt Remarkable in October 2019 that will test the high-grade Trudi Vein, test for new high-grade zones along strike and at depth and target extensions to known high-grade gold zones.
Other drill targets will include the prioritised targets from the ongoing reconnaissance work and the newly discovered mineralised gold vein, Jeniffer Vein.
King River is also conducting a detailed geological and geophysical review of all its Treasure Creek tenements in the Tennant Creek area Northern Territory and is planning to commence ground reconnaissance and geophysical surveys on two priority granted tenements (EL31617 and EL31619) in October. KRR has located multiple iron oxide copper-gold targets within the granted licences.
After the ground reconnaissance and geophysical surveys, the company will start the drilling process in the month of November, subject to the necessary approvals.
NT Mines Department is currently reviewing the environmental approvals for the planned drilling. It is expected that the company will receive approvals by the end of this month.
Speewah Specialty Metals (SSM) Project
Besides Mt Remarkable and Treasure Creek project, KRR is also involved in the development of its wholly owned Speewah Specialty Metals (SSM) project. The company is trying to identify the optimum process route to produce vanadium pentoxide, titanium dioxide, iron oxide products and various other high value products like high purity alumina (4N HPA) and magnesium oxide from this project.
At its SSM Project, the company has progressed the Beneficiation-Agitated Tank Sulphuric Acid leaching-precipitation process and precipitated following products from leach solutions:
- High purity alumina -99.99% Al2O3 (4N HPA)
- Titanium dioxide – 80% TiO2
- Iron oxide -67% Fe2O3
The company recently announced that it has adopted the recommendation of Como Engineering to reshape the scale and timing of the SSM PFS Study and has identified opportunities to materially reduce the start up capital requirement to build the project.
Besides, the company is evaluation a new two stage acid leaching process route that may further lessen the current acid consumption volumes.
It is expected that by the end of 2019, the company will complete a Prefeasibility study at the project.
Important metallurgical testwork and studies to be addressed in the PFS include:
- Complete heated agitated leach, including two-stage leaching with potential to reduce acid consumption, to confirm the optimum process and conditions;
- Options analysis into the capital and operating costs for an on-site Sulphuric Acid Plant compared to importing acid and contract diesel power generation, including the supply, port access and transport of sulphur and sulphuric acid;
- Complete hydrometallurgical process flow sheet development trialing solvent extraction, ion exchange, thermal hydrolysis and chemical precipitation methods. Regeneration of sulphur values as sulphur dioxide (SO2) from the iron product is an important part of the process as it has the potential to reduce the sulphuric acid requirement;
- Re-assay RC drill pulps in storage for aluminium and magnesium, plus other rock forming elements, for inclusion in a new resource statement. The drill samples were originally assayed prior to 2012 for V, Ti and Fe;
- Geotechnical studies on drill core to help finalise pit design;
- Environmental, heritage and marketing studies.
Once the PreFeasibility Study is completed, the company will conduct a Definitive Feasibility study along with the funding partners, which would include:
- Scaled up pilot plant programs;
- Predevelopment applications;
- Alternative production scale scenarios.
Stock Performance: In the last six months, KRR’s stock has provided a return of 34.62% as on 20 September 2019. By the end of market trading on 23 September 2019, KRR stock was trading at a price of $0.035 with a market capitalisation of $43.7 million.
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