Subsequent to the June 2019 quarter, Australian explorer, King River Resources Limited (ASX: KRR) accomplished varying notable endeavours that altogether bolstered the project-centric developments of the Company. KRR is ardently focused on developing its wholly owned vanadium resource, in addition to other exploration projects for gold, copper and silver.
KRR’s Wholly Owned Project Portfolio
- Speewah Specialty Metals Project in the East Kimberley of Western Australia
- Mt Remarkable Gold Project in the East Kimberley of Western Australia
- Tennant Creek: Treasure Creek Project in the Northern Territory
As the Company anchored its operations to align with exploration objectives, let us look at the mineral resource estimates and project activities undertaken in the past few months.
Mineral Resource Estimate
KRR engaged CSA Global Pty Ltd for amending the Central deposit Mineral Resource Estimate with the inclusion of Alumina (Al2O3) and Magnesia (MgO), as per the JORC code.
Speewah Specialty Metals (SSM) Project
Hosting Australia’s largest vanadium-in-magnetite deposit with the highest vanadium grade in magnetite concentrate, the project is focussed on analysing the best process route for producing high-value products that include high purity alumina or 99.99% Al2O3 (4N HPA), vanadium pentoxide (more than 98% V2O5), titanium dioxide or more than 99% TiO2 and iron oxide (more than 67% Fe2O3).
Significant activities undertaken during the September and December 2019 quarter concerning the Speewah Specialty Metals (SSM) Project were-
- The appointment of Como Engineers for completing the processing plant design and costing for the Pre-Feasibility Report.
- CSA Global was appointed for conducting reserve estimate, mining and geological studies while MineGeoTech, in partnership with CSA Global, completed the geotechnical investigation.
- Animal Plant Mineral (APM) completed an environmental report and detailed the permitting process for the project.
- Drill results for 34 Reverse Circulation (RC) holes highlighted vanadium average of about 0.30% V2O5, ranging from 0.21% to 0.47% V2O5 and titanium dioxide grades ranging from 3.0% to 3.6% TiO2.
- Pre-feasibility Study (PFS) was completed on KRR’s 100% owned SSM project.
- Production of 99.98% Al2O3 (3N8) HPA through the purification of the immediate AI rich product on calcination and washing.
- A detailed marketing study commissioned by the Company from CRU International, examining the prices and demand for the four commodities targeted and highlighting that 4N HPA (99.99% Al2O3) currently attracts a price of ~US$24,000/tonne, with further increase in its price and demand in coming years.
Mt Remarkable Gold Project
Mt Remarkable Project encapsulating Trudi Veins and Whitewater Volcanics rocks host prospective high-grade gold deposits in the East Kimberley of Western Australia.
Along the Whitewater Volcanics prospective that incorporates sparsely explored trend, the Company believes that further high-grade deposits are yet to be discovered. With the gold-centric exploration objectives at Mt Remarkable Project, KRR undertook a range of activities in the past few months.
- Over the Mt Remarkable Gold Project, six of the eight exploration licence applications were granted, covering the primary strike extension of the Whitewater Volcanics.
- For 2,677 metres, a total of 39 holes were drilled in a RC drill program. During the drill program, reconnaissance exploration, a ground magnetic survey and surface rock sampling were also undertaken.
- Targeting the Trudi Main Grid area and Trudi East extensions, KRR completed seventeen holes for 1,368 metres with seven drill holes’ results returned from the Trudi drilling and best results including 6m @ 5.95g/t Au from 20m including 1m @ 33.7g/t Au and 3m @ 7.1g/t Au from 26m including 1m @ 17.9g/t Au associated with quartz-adularia veining at the eastern most edge of the 5m grid drilling.
- At Reconnaissance Veins, twenty-two RC holes for 1,309m were drilled targeting newly discovered and anomalously mineralised reconnaissance veins including the Central Dome, Jeniffer and Camp North areas.
- Assay results for the Trudi veins have discovered a new mineralised zone returning 7m @ 0.85g/t Au including 1m @ 2.42g/t Au;
- Furthermore, in newly granted tenement EL5133, 3 holes intersected gold mineralisation on a quartz adularia vein at Jennifer North.
Treasure Creek Gold Project
Treasure Creek is characterised by magnetite and hematite iron oxide bodies that are mineralised with bismuth, copper, silver and gold. Typical Tennant Creek orebodies are IOCG gold deposits which sometimes return bonanza style gold intersections.
Concerning the project, Treasure Creek Pty Ltd, KRR’s wholly owned subsidiary, has undertaken different activities over the previous two quarters.
- Treasure Creek Pty Ltd applied for two highly prospective tenements (EL32199 and EL31626) in the Tennant Creek Region during the September quarter.
- At two priority Treasure Creek tenements (EL31617 and EL31619), reconnaissance and geophysical surveys were undertaken;
- At the Lonestar Trend prospect area on EL31617, the first phase of ground magnetics has been completed with preliminary results clearly defining main magnetic along with other significant trends/anomalies;
- Atlas Geophysics completed gravity surveys at the Lone Star Trend prospect area and at the Commitment Prospect;
- Two new Exploration Licences (EL32344 and EL32345) covering an area of 1,172 square kilometres were applied for in the southern part of the tenement package during the December 2019 quarter.
Near-Term Project Programs
Speewah Specialty Metals
- For further improving the HPA purity and efficiency, optimisation test works are underway.
- Pre-feasibility study is scheduled for King River Resources’ Speewah Specialty Metals for late-March 2020, and definite feasibility study is planned for future.
Mt Remarkable Gold Project
- To define IOCG targets at Tennant Creek on EL31619, the Company is continuing geophysical work, targeting to start drilling program by the end of March 2020.
Treasure Creek Project
- Drilling of the main EL31617 and EL31619 geophysical targets at Treasure Creek Project is planned for 2020 and NT Mines Department is currently reviewing environmental approvals for the planned drilling.
Stock Information - On 17 March 2020, KRR stock last traded at $0.023. The Company has a market cap of $28.72 million and has generated a positive return of 4.55% in the past one month.
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