Australia-based specialty metals explorer, King River Resources Limited (ASX: KRR), focused on creating shareholder wealth through the discovery and development of mineral deposits, made notable progress in its varying exploration-related endeavours centred at its projects during the March 2020 quarter.
KRR Wholly Owned Project Portfolio includes
- Speewah Specialty Metals (SSM) Project
- Mt Remarkable Gold Project
- Treasure Creek Project
Amidst the current restrictions related to COVID-19, the Company has suspended field exploration related activities until the Government provides further advice on the pandemic and movements in Australia. However, its activities concerning pre-feasibility study (PFS) into the SSM project continue to move ahead as planned.
With this backdrop, let us have a closer look at the noteworthy project and corporate activities undertaken by the Company during the three months to March 2020.
Speewah Specialty Metals (SSM) Project – HPA Production Process Under Evaluation
The Pre-feasibility Study (PFS) into the Speewah Specialty Metals Project is currently being costed on a smaller scaled operation involving Beneficiation-Agitated Tank Sulphuric Acid leaching-precipitation process. The focus of the study is to examine a new process route for producing High Purity Alumina (99.99% Al2O3 4N HPA) with titanium dioxide (TiO2), vanadium pentoxide (V2O5), and iron oxide (Fe2O3) products deferred to a later development stage.
Post KRR’s breakthrough in aluminium extraction as the first precipitation product directly from the V, Ti, Fe, Al and Mg-rich sulphuric acid leach solution; the Company produced 99.98% Al2O3 by a new process. The flowsheet development of King River at SSM is centric to high purity alumina production along with the extraction of titanium dioxide, vanadium pentoxide and iron oxide by solvent extraction using conventional methods.
HPA testwork is primarily fixated on the simplification of the process stages that would improve aluminium recovery while ensuring the lowest contamination level for producing 4N HPA.
The potential of a smaller scale project development design is supported through the sulphuric acid (H2SO4) leach testwork on magnetite and non-magnetic concentrates and run of mine rock. The targeting and extraction of alumina are done through leaching the rock, which has only been grounded to 0.15mm following the mining and crushing without further beneficiation.
Whole-rock drill core samples taken from the high-grade zones of SDH11-09 in the Central deposit were grounded to P80 0.15mm followed by leaching in 20 per cent H2SO4 at 70°C and 20 per cent, 30 per cent and 35 per cent pulp densities, for 96 hours resulted in the aluminium leach extraction of 37-42 per cent.
Mineral characterisation studies conducted on magnetite gabbro have demonstrated zonation of the alumina-rich plagioclase feldspar. It clarifies why the extractions are high aluminium whereas low in sodium and potassium in all leach testwork.
Mt Remarkable Gold Project – New Mineralised Zone Identified
At KRR’s gold-centric project, final assays from the RC drilling program (2019) identified a mineralised zone and intersected gold mineralisation. The drilling program targeted Trudi vein, in addition to veins that were discovered during reconnaissance exploration in 2019.
The best assay results demonstrated from Trudi Vein and Jennifer North Vein include
- At 150 metres east of the main Trudi deposit, KRR discovered a new mineralised zone with drilling intersecting 7m @ 0.85 gram per tonne gold including 1 metre at 2.42 gram per tonne gold in strong quartz adularia veining.
- Three holes intersected gold mineralisation at Jennifer North on a quartz adularia vein, which is set in newly granted tenement EL5133
To Know More: Do Read Mt Remarkable Gold Project Showering Glittering Hopes on King River Resources
Treasure Creek Project - Multiple Iron Oxide Copper-Gold Targets Identified
IOCG targets, namely the Lonestar Trend magnetic anomaly and Commitment Magnetic Anomaly were defined by geophysical work carried in 2019 at Tennant Creek. The gravity and magnetic anomalism strength at the two targets are analogous to other known IOCG deposits in the area.
Main magnetic anomaly located at 3.3 kilometres from the prospect of Mauritania of Emmerson and other significant east-west magnetic trend have been defined by gravity and magnetics at Lonestar Trend.
Lying 16 kilometres to the east of the Lone Star Trend prospect area, the Commitment Prospect is a significant magnetic high. The new gravity survey has pinpointed a significant gravity, which lies nearby and somewhat offset from the main magnetic high. It may demonstrate a more hematite rich element of an ironstone body
KRR within the granted licences has already identified many iron-oxide copper-gold targets, and geological and geophysical data of all the project’s tenements is currently under review by the Company.
Following environmental approvals for the planned drilling program from the NT Mines department and clarity on current restrictions related to the COVID-19 outbreak, King River Resources is likely to plan drilling of the main EL31619 geophysical targets during 2020.
Corporate Activities - With Harvey Springs Estate Pty Ltd, KRR has entered a loan facility, which is non-interest bearing and has a maturity date of 31 December 2020. The lending is unsecured in the amount of $250,000, which the Company can draw down for use as working capital.
The Company also received a tax rebate of $385,064 on 8 April 2020, which would be directed towards supporting the working capital. Meanwhile, cost reduction measures such as until the end of the financial year (FY20), deferral of director fee payments have been introduced to sail smoothly through the pandemic.
As at 31 March 2020, available funding with KRR stood at $543,789 while cash and cash equivalents was noted at $293,789.
Stock Information - At the Company’s request, KRR securities have been placed in a trading halt pending an announcement release, until 24 April 2020 or when the announcement is released in the market. The KRR stock last traded at $0.034 on 21 April 2020. The stock has gained a positive return of 88.89% and 70% in the past one month and three months, respectively.