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  • White Cliff Minerals Finds More Nickel Anomalies At Merolia

    White Cliff Minerals (ASX:WCN) has identified a further four significant high tenor nickel in soil anomalies with up to 1426ppm nickel at its Merolia Nickel and Copper project in Western Australia's Laverton region.

    Low cost rotary air blast drilling is being prepared to test the Rotorua Ultramafic Complex, which is mostly hidden under shallow cover that limited the effectiveness of the sampling method.

    This is an exciting time for nickel exploration given that nickel prices have risen as much as 56% this year to US$21,625 per tonne after Indonesia clamped down on exports of unprocessed ores.

    The new anomalies, two each at the McKenna and Rotorua prospects, were discovered through analysis of additional soil geochemistry carried out over the Merolia project.

    "The identification of these nickel anomalies continues to improve the prospectivity of the Merolia project. The size and strength of the nickel anomalies is highly encouraging and warrants follow up drilling," managing director Todd Hibberd said.

    "The geochemical surveys will be followed by low cost RAB drilling and geophysical surveys that are expected to generate multiple defined EM conductors that will be drilled in the latter part of 2014.

    "We are highly encouraged by the initial results generated from the geochemical program at the Merolia project.

    "The prospective parts of the Merolia project extend over 80 kilometres and are along strike from the Rosie and Camelwood nickel sulphide discoveries to the north and the Mulga Tank nickel discovery to the south providing confidence that further strong results will be delivered as exploration progresses."

    New anomalies

    The analysis of additional infill soil geochemistry carried out over the Merolia project has extended the high tenor nickel in soil anomalies identified at the McKenna and Rotorua prospects.

    Four major and several minor anomalies have been identified from the infill survey, which followed an extensive soil geochemical survey covering the contacts of the Diorite Hill and Rotorua ultramafic complexes that was completed in June 2014.

    The major nickel anomalies at the McKenna prospect have nickel values up to 1426ppm nickel and 79ppm copper.

    McKenna One extends 1,000 metres along strike and about 500 metres wide. It is interpreted to occur on the basal contact of the mafic-ultramafic Diorite Hill intrusion and the adjacent ultramafic unit.

    The second McKenna anomaly - McKenna Two - occurs one kilometre west of McKenna One and extends 1000 metres along strike and is around 250 metres wide. This has nickel values up to 1125ppm and copper values up 52ppm.

    McKenna Two also reappears further north on the other side of a drainage system which has eroded the soil and removed any surface expression of the nickel anomaly in between.

    At Rotorua, where the strongest anomaly from the earlier survey was found on the eastern side of the Rotorua Ultramafic unit, the infill survey has identified two anomalies with nickel values up to 743ppm nickel and 68ppm copper.

    The Rotorua North anomaly extends 1000 metres along strike and is 350 metres wide. It occurs within a wedge of ultramafic rocks folded around the nose of a felsic intrusion.

    Rotorua South extends over 800 metres along strike, is about 270 metres wide and occurs along the interpreted basal contact of a wedge of ultramafic rocks adjacent to a felsic intrusion.

    Detailed analysis of the sampling results has also revealed that a large proportion of the ultramafic rocks within the survey area have virtually no geochemical response.

    Several test pits excavated across this area indicate that transported Aeolian sands have filled in a shallow depression and covered a large proportion of the ultramafic stratigraphy, limiting the effectiveness of the sampling method.

    The company plans to test this area using low cost reverse air blast to penetrate the cover and reveal the bedrock geology across the Rotorua Ultramafic as well as testing across the soil anomalies already identified.

    Merolia Nickel and Copper Project

    The Merolia Nickel and Copper Project covers an area of 771 square kilometres that is highly prospective for magmatic nickel and copper sulphides (both layered ultramafic and extrusive komatiitic types) and for orogenic gold deposits.

    It is located to the east of Laverton and covers multiple nickel and copper anomalies that are located along a 65 kilometre long ultramafic sequence that extends from north to south, and includes a major section of Merolia greenstone belt.

    Major nickel and copper targets have been identified at Diorite Hill basal contact, and the Rotorua ultramafic complex in the northern extension of Merolia.

    The intrusive complexes are prospective for nickel-copper sulphide accumulations possibly with platinum group elements, and the extrusive ultramafic rocks are prospective for nickel sulphide and nickel-cobalt accumulations.

    The project also contains extensive basalt sequences that are prospective for gold mineralisation including the Ironstone prospect where historical drilling has identified 24 metres at 8.6 grams per tonne gold.

    Recent discoveries in the area include Camelwood for nickel, Collurabie for nickel, copper and platinum group metals, and Mulga Tank for nickel and copper. Established nickel resources in the 1-2 million tonne range are located at Mount Keith, Perseverance and Kambalda.

    Analysis

    With nickel prices continuing to rise, the discovery of additional nickel anomalies at White Cliff Minerals' Merolia Project is highly encouraging.

    These are large - up to 1,000 metres long - and have returned up to 1426ppm nickel.

    Prospectivity is further enhanced by the project being on strike from the Rosie and Camelwood nickel sulphide discoveries to the north and the Mulga Tank nickel discovery to the south.

    As noted by managing director Todd Hibberd, the company will carry out low cost rotary airblast drilling and geophysical surveys to generate multiple defined EM conductors that will be drilled in the latter part of 2014.

    This activity will be closely watched and could act as a significant share price catalyst.

    Proactive Investors continues to maintain a share price target of $0.06 over 6-9 months.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

    Aug 19 10:01 PM | Link | Comment!
  • MRL Corporation Secures Graphite Project With Production Potential

    MRL Corporation's (ASX:MRF) shares are set to lift at the open after the company secured a new high-grade graphite project with a mining licence, providing the potential for a path to production and early cashflow.

    Historical records indicate that the graphite was of such high grade that the material would be direct shipping quality.

    MRL has signed a Heads of Agreement to acquire the lease covering the high-grade Aluketiya Graphite Mine in Meegahatenna, Sri Lanka.

    Aluketiya produced high-grade graphite for several decades until the operation was stopped in the 1960s.

    Extensive veins of high-grade graphite are visible from surface but the area has not been subjected to any modern exploration techniques.

    The area is considered to be the richest graphite-bearing area in the country, and is a significant addition to the company's existing high-grade projects.

    Historical records indicate the veins are steeply-dipping (approximately 70 degrees to the east) with a north-south strike direction and with "very good" quality crystalline - vein graphite.

    Consideration

    MRL will pay a lease fee of US$3500 a month during the exploration phase. Upon the start of production, MRL will pay a 10% royalty which will be based on sales.

    The royalty will be paid quarterly in arrears within 20 days of each quarter's end.

    The transaction is subject to MRL completing due diligence and execution of a formal lease agreement.

    Craig McGuckin, managing director, commented: "We are aiming to develop a high-grade, low-cost mining operation in the shortest timeframe possible.

    "Based on what we know, the cost of getting into production will be extremely low and therefore there will be no need to spend the time and money establishing a JORC-compliant resource.

    "The fact that Aluketiya is already covered by a Mining Licence is immensely valuable because not only will it enable us to start production quickly, it will also underpin our applications for other approvals such as transport and export licences."

    Drilling of Aluketiya

    MRL will seek to establish the extent of this high-grade graphite mineralisation as part of a drilling program due to start in late 2014.

    However, MRL does not intend to drill Aluketiya to the point of being able to calculate a JORC-compliant resource estimate and will instead aim to begin production as soon as possible.

    The importance of vein graphite

    Vein (crystalline) graphite is the purest form of graphite with TGC grades typically >90%, with some grade as high as 99.5% TGC.

    Mining vein graphite may be considered analogous to high-grade gold vein mining, requiring considerably less capital expenditure when compared to large-scale open pit mining.

    Operating unit costs will also be lower than those for typical large-scale open pit mining.

    Nature of vein graphite

    Sri Lankan graphite deposition model is best described from the 'bottom up': tension fractures formed in the metamorphic sediments, caused by the folding of the sediments, creating 'conduits' for the hydrothermal deposition of high quality vein graphite.

    Historically, mining of these veins has found the veins generally increase in thickness and grade quality with increasing depth. Graphite veins generally dip steeply at -70° to near vertical, enabling 'narrow vein' extraction mining techniques similar to those used on narrow vein, high-grade gold deposits.

    The method commonly used is an overhead retreat stoping technique where the high-grade vein graphite is mined and hauled to surface without contamination.

    The graphite selvages, in contact with the surrounding waste, is hauled to surface and stockpiled for upgrading. The balance of the waste is used to fill the floor of the stope.

    Across at Pandeniya - Priority 1 Area

    In other MRL Corporation news, drilling is continuing at the company's Pandeniya - Priority 1 Area within the Warakopola Area in central Sri Lanka, where extremely high-grade graphite intersections have been returned.

    These include assays showing 99.2% Total Carbon.

    Analysis

    The acquisition complements and expands MRL's extensive portfolio of high-grade vein graphite licences in Sri Lanka, where it is aiming to develop multiple small-scale production hubs.

    Aluketiya produced high-grade graphite for several decades until the operation was stopped in the 1960s, and historical records indicate that the graphite was of such high grade that the material would be direct shipping quality.

    Due to the nature of the vein graphite, it is anticipated vein widths of ~25cm, using narrow vein mining techniques can be economically extracted from underground operations.

    With a potentially relatively low capital expenditure likely for the new project and replete with a Mining License to allow transport and export, this could just be a game changer for MRF.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

    Aug 19 9:58 PM | Link | Comment!
  • Legend Mining Commences Electromagnetic Survey In Fraser Range

    Legend Mining (ASX:LEG) is cashed-up and has now commenced a major moving loop electromagnetic (MLEM) survey over its Fraser Range Project in Western Australia.

    The project is considered prospective for Nova style nickel-copper and Tropicana style gold mineralisation.

    Earlier in the month the company received the first tranche of $6 million from the $17.5 million sale of its Ngovayang project, bringing its cash and equivalents at hand to more than $15 million.

    There are two more tranches of $6 million and $5.5 million which ensures that the company is well funded going ahead.

    Mark Creasy is the largest shareholder in LEG with around 25%.

    Survey

    The MLEM survey is designed to test for possible conductors associated with seven priority targets previously identified through the interpretation of detailed aeromagnetic data.

    These targets were selected on their magnetic character and are interpreted to relate to mafic/ultramafic intrusives.

    The survey is expected to take 40-45 days to complete with ongoing monitoring of results undertaken to allow for infill if required.

    Based on the results of these surveys, aircore drill testing of all conductors will be undertaken subject to the necessary statutory clearances.

    Increased Fraser Range footprint

    Just last month LEG increased its footprint in the highly prospective Fraser Range District of Western Australia through a tenement ballot.

    The three small areas cover a combined area of 20.6 square kilometres and are located 225 kilometres east of Kalgoorlie along the Trans Australian Railway and 100 kilometres northeast of Sirius Resources' (ASX:SIR) world-class Nova nickel copper massive sulphide deposit.

    LEG now has three tenements in the Fraser Range District covering a total area of 409 square kilometres.

    Analysis

    Legend Mining has now commenced a MLEM survey at its Fraser Range project, which is prospective for Nova style nickel-copper and Tropicana style gold mineralisation.

    The company has cash and equivalents of around $15 million.

    There are two more tranches of $6 million and $5.5 million to come following the sale of the Ngovayang project, which ensures the company is well funded going ahead.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

    Aug 19 9:54 PM | Link | Comment!
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