The Feysville Gold Project
Let us delve into project updates during the September quarter-
- The project is located in Australia’s premier gold belt where gold and other economic gold deposits have also been discovered;
- In April, AAR announced a maiden mineral resource at the Think Big Prospect and provided an update of metallurgical test-work (developed by METS Engineering Group) results from 73 Reverse Circulation (RC) drill holes and 12 diamond holes/ tails for an aggregate of 10,042 metres drilled on a 40 x 20 metre grid through the core of the deposit;
- The results demonstrated that it is beneficial to mill the feed to a P80 of 75 µm, an established grind size for gold processing typical of custom milling operations;
- Comminution and physical characterisation testwork showed that the ore has good crushing and grinding characteristics;
- The results indicate that the wear rates for crushing and grinding equipment will be low in a process plant. Additionally, the Bond Ball Work index (BBWi) results are positive, indicating that energy requirements for grinding will not be an issue.
- At Think Big, an infill RC drilling campaign comprising 26 holes for 2,380 metres was completed;
- Drilling confirmed supergene gold mineralisation at Think Big is largely continuous over 200 metres in strike length and up to 80 metres in width;
- The presence of such high-grade supergene gold is very encouraging for economic extraction of the shallow parts of the Think Big Resource;
- AAR reported maiden Indicated and Inferred Mineral Resource Estimate of 116,000 ounces of gold at a 0.5 g/t cut-off, with more than 80% of Resource categorised as Indicated;
- The southern part of the infill drilling area also recorded several broad, moderate-grade primary gold intersections;
- Currently, updated geological interpretation and resource modelling at Think Big is underway, and once metallurgical domains within the resource are undertaken as part of the resource modelling, mining optimization studies will be undertaken to define an initial mining reserve.
- At the Hyperno Prospect, a 6-hole slim-line RC drilling campaign was undertaken to follow up a strongly gold anomalous reconnaissance aircore hole;
- At the Saintly Prospect, a 14-hole RC campaign for an aggregate 1,260 metres on a variously 40 x 20 metre and 80 x 40 metre grid was undertaken, and the latest drilling returned broad zones of mineralization containing gold grades averaging close to 1 g/t at shallow hs of 10 to 20 metres below surface.
The Mandilla Gold Project
- It is located ~75 kilometres south of Kalgoorlie, and in June AAR commenced a diamond drilling campaign at Mandilla, co-funded through a grant provided by the Department of Mines, Industry Regulation and Safety , WA under its Exploration Incentive Scheme;
- Three holes were drilled for a total of 580 metres of diamond drilling and 153 metres of RC pre-collars;
- Outstanding intersections included: 60.2 metres @ 3.79 g/t Au from 65.8 metres and 93 metres @ 3.11 g/t Au from 91 metres;
- Evidence in the limited bedrock drilling to date at Mandilla East is that gold is related to an extensional vein array within the Mandilla Syenite, and mineralisation might well be better modelled as a high tonnage, lower grade target;
- MDD003, drilled to a depth of 297.3 metres, confirmed the presence of 1 to 10-centimetre-thick shallow south- to southeast dipping extensional quartz veins within the Mandilla Syenite;
- MDD004, drilled to a depth of 247.5 metres, and gold grades returned for sampled intervals were less than 5 g/t Au;
- MDD005 was drilled at Mandilla South to test for bedrock gold mineralization within the Mandilla Syenite wherein peak supergene gold values exceeding 5 g/t Au occur over a strike length of ~300 metres;
- MDD005 is important as it extends significant gold anomalism in the Mandilla Granite a further 1.2 kilometres from the Mandilla East resource, within a total strike length for the system of at least 3 kilometres;
- With the success of the diamond drilling “proof of concept” campaign, on 23 August, AAR commenced a RC drilling campaign to significantly expand the potential volume of mineralisation to greater depth;
- The Company believes that further drilling is required to close off mineralisation to the south of the Mandilla East system;
- The variable distribution of quartz veins, together with the presence of coarse gold, means that a strong “nugget effect” exists at Mandilla East and it is critical to sample 1 metre intervals;
- In light of the initial success of the RC campaign, AAR has decided to extend the current RC drilling campaign with an additional 10 holes for an aggregate 1,500 metres, originally planned to encompass 31 holes – 23 at Mandilla East on 40 x 40 metre spacing and 8 at Mandilla South on 80 x 40 metre spacing – for an aggregate 5,400 metres.
- In In addition to the current RC program, the Company is proposing to drill 60 shallow RC holes for an aggregate 3,600 metres to test various objectives (to begin as soon as an appropriate drill rig becomes available) including:
- The 500 metres gap between Mandilla East and Mandilla South Prospects which was ineffectively drilled previously;
- Known areas of shallow high-grade gold mineralisation in the vicinity of the previously mined Mandilla West palaeochannel;
- Supergene and shallow primary gold mineralisation potential in several areas of known gold anomalism outside of the main trends;
The Koongie Park Project
- It is situated 20 kilometres to the south-west of Halls Creek in the Eastern Kimberley;
- During the Quarter, the Company undertook a RC drilling (15 holes for an aggregate 822 metres) campaign at the Nicolsons East Shear Zone;
- Best intersections included-
- At Nicolsons East, from MAW002, 3 metres at 1.00 g/t Au from 23 metres, including 1 metre at 1.49 g/t Au from 24 metres;
- At Bull Dog, from BD002, 1 metre @ 11.27 g/t Au from 22 metres.
- 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;
- Moreover, AAR has separately identified a number of other geochemical gold anomalies, which will be the subject of further review including field validation in coming months.
Financial Stance and Stock Performance
AAR was successful in raising ~$1.4 million before expenses via the issue of 21 million shares at $0.065 each. As at 30 September 2019, cash on hand amounted to ~$1 million.
On 12 November 2019, AAR settled the day’s trading at $0.093. The stock has generated a return of 19.23% in the past six months.
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