• Strategic Minerals has reported encouraging results, which the company describes as the best results achieved to date, from the first two drill-holes of its current 2018 programme. Results are pending from a further 3 holes and the remaining two holes planned for the Phase 1 programme are expected to be completed in early October.
• The programme is primarily designed to increase the tonnage and grade of the existing inferred resource estimate of 4.5mt at an average grade of 1% tin equivalent and prepare for a pre-feasibility study to be undertaken in 2019.
• Work is directed at the Sheeted Vein System (SVS) which “has previously been demonstrated to be continuous along a strike length of over 650 m with a thickness of approximately 100 m, and a variable known dip extent (250 – 450 m)” while still remaining open down-dip.
• The results reported today come from two holes, CRD 021 and CRD022 and the company says that a further three holes (CRD023 – CRD025) where assay results are awaited “have intersected multiple zones of tungsten and copper mineralisation of a similar appearance to that in CRD021 and CRD022.”
• Hole CRD021 tested the deep extension of the SVS “intersecting mineralisation more than 180 m below that seen in nearby previous holes” and encountered four predominantly tungsten-bearing mineralised horizons;
o A 1.3m wide zone between 312.88m and 314.18m depth at an average grade of 3.94% copper,0.1% tin and 3.29% tungsten trioxide; and
o A 12.24m wide zone between 533.32m and 535.56m depth at an average grade of 0.02% copper,0.01% tin and 6.24% tungsten trioxide; and
o A 14.21m wide zone between 644.63m and 658.84m depth at an average grade of 0.09% copper,0.01% tin and 0.76% tungsten trioxide; and
o A 7.65m wide zone between 670.02m and 677.67m depth at an average grade of 0.06% copper,0.01% tin and 1.01% tungsten trioxide
• The second hole reported today, CRD022, aimed “to intersect mineralisation to the west of CRD019, the deepest and highest-grade hole drilled prior to the current drilling ,and to provide continuity in order to connect this well mineralised hole, that is not yet part of the inferred resource, into the resource model”.
• The company considers that “CRD022 was highly successful, producing grades and widths that compare favourably with those of CRD019 and which may offer evidence of strike continuity of the mineralised system over the approximate 75 m separation between the two holes.” Specifically, it intersected three principal zones, again showing relatively high tungsten contents including:
o A 9.75m wide zone between 405.00m and 414.75m depth at an average grade of 0.43% copper,0.07% tin and 0.54% tungsten trioxide; and
o A 14.1m wide zone between 420.25m and 434.35m depth at an average grade of 0.74% copper,0.17% tin and 0.68% tungsten trioxide; and
o A 10.88m wide zone between 483.36m and 494.24m depth at an average grade of 1.18% copper,0.05% tin and 0.28% tungsten trioxide.
• The completed holes where assays remain pending were
o CRD023, which was drilled to examine the western, down-dip extension of the mineralisation included in the inferred resource. Drilling “successfully hit the wider SVS from ~600 to ~700 m, and a zone of wolframite-rich veins was identified during logging within this zone”
o CRD024 was directed at the eastern, down-dip extension of the current inferred resource and is reported to have intersected “clusters of veins … carrying coarse wolframite” within wider SVS zone at in-hole depths between 530-640m.
o CRD025 was drilled to examine the zone between the eastern part of the resource area and hole CRD19 which was too far from the resource envelope to be included in the resource estimate. Hole CRD025 “appears to have intersected extensive wolframite and chalcopyrite carrying veins at the anticipated depth”.
• Based on these results, the company and its partner, NAE, are “reviewing plans to undertake additional drilling to further expand the size of the resource and upgrade a portion of it to an indicated, as opposed to inferred, status.”
Conclusion: The recent drilling confirms that mineralisation is more extensive both laterally and at depth than was established by the mineral resource estimate published in March. The results indicate that an updated resource may be larger than the current estimate as well as more robust than the current inferred level. Given that the company has previously identified the size of the resource as one of the key parameters for a development decision Strategic Minerals seems to be moving towards that resource increase ahead of starting a pre-feasibility study during 2019.
*SP Angel act as Nomad and broker to Strategic Minerals
NAE Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
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