The trend estimate for total mineral exploration expenditure increased by 5.2% ($31.3 million) to $629.6 million in the June quarter 2019, as per Australian Bureau of Statistics. Interestingly, the largest contributor to the increase in the trend estimate was Western Australia.
A Western Australia (Perth) based explorer, Anglo Australian Resources NL (ASX: AAR) had a great FY 2019, with significant progress made on its wholly owned projects particularly, the Think Big Prospect, a part of the Feysville Gold Project, and the Mandilla Gold Project.
Key Project Highlights in FY2019.
Now that we understand the FY19 highlights, let us look at AARâs operational advances at its Projects:
Feysville Gold Project
- The Feysville Gold Project is located in Australiaâs premier gold belt, ~14 kms south of the giant Golden Mile deposit (70 MOz) at Kalgoorlie;
- It takes in major gold deposits at New Celebration (3 MOz), and other economic gold deposits have also been discovered;
- On 6 November 2018, Feysville Gold Pty Ltd, a wholly owned subsidiary of Anglo Australian, submitted to the Department of Mines and Petroleum of the Government of Western Australia a Mineralisation Report as part of an application for a Mining Lease pursuant to the Mining Act;
- Results from the RC drill chip metallurgical testwork program completed in August 2018 demonstrated that it is beneficial to mill the feed to a P80 of 75 Âµm, an established grind size for gold processing typical of custom milling operations;
- The project is anticipated to be mined via open pit mining methods with processing at third party plants;
- Moreover, the presence of high-grade supergene gold is very encouraging for economic extraction of the shallow parts of the Think Big Resource;
- At the Hyperno Prospect, a 6-hole slim-line RC drilling campaign was undertaken to follow up a strongly gold anomalous reconnaissance aircore hole and results demonstrated that a supergene-enriched gold blanket is present at a depth of around 15 to 20 metres;
- At the Saintly Prospect, the latest drilling returned broad zones of mineralization containing gold grades averaging close to 1 g/t at shallow depths of 10 to 20 metres below surface.
Mandilla Gold Project
- The Mandilla Gold Project, is ~75 kms south of Kalgoorlie, and lies on the western margin of a porphyritic granitic intrusion known as the Mandilla Syenite;
- Recent petrology confirmed the intrusion as having a syenite-monzonite composition;
- With the success in June of a diamond drilling âproof of conceptâ campaign at Mandilla, since completion of the financial year, AAR commenced a new RC campaign;
- By September 2019, 20 holes have been completed at Mandilla East on 40 x 40 metres spacing for an aggregate 3,600 metres.
- At Mandilla South, AAR undertook a slim-line RC drilling campaign primarily aimed at seeking to identify whether any higher-grade supergene gold enriched zones were present along the length of the target;
- The results of the campaign have identified a higher-grade core over a strike length of at least 300 metres with peak supergene values exceeding 5 g/t Au within the 2.5 kms long, 250 metres wide +1 g/t anomaly.
To know about the RC Drilling progress at Mandilla, READ HERE.
The Koongie Park Gold and Base Metals Project
- The Koongie Park Project is situated 20 kilometres to the south-west of Halls Creek in the Eastern Kimberley region of WA where several geochemical gold anomalies have been identified;
- AAR undertook the drilling of 15 RC holes for an aggregate 822 metres in 2019;
- The recently completed RC holes were located beneath the mapped positions of quartz vein outcrops at the two Prospects to test the potential scale and grade of these structures;
- Drilling confirmed zones of quartz veining in most of the holes with gold assays ranging from weakly gold anomalous to containing significant grades of up to 11.27 g/t Au over 1 metre in BD002;
- The results validate the presence at both Prospects of gold mineralisation worthy of ongoing exploration for high-grade gold mineralisation of the type present at the Nicolsons Mine.
Executive Chairman and Acting Managing Director John Jones states that âI firmly believe that, in both Think Big and Mandilla in particular, we have every reason to look to 2020 with much excitement.â
The AAR stock settled the dayâs trade at $0.089, on 29 October 2019.
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