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Miners upbeat

Thursday, 29th September, 2011

By Andrew Robertson

 Two fledgling explorers in search of base and precious metals in our area have received a boost with recent test drilling yielding positive results.

Silver City Minerals Limited described as “encouraging” high grade results from a shallow drilling program at its Allendale lead-zinc-silver prospect, 40km north of Broken Hill.

At the same time, Broken Hill Prospects said sample recovery from eight holes it drilled at its Pyrite Hill cobalt deposit, 25km southwest of the city, were of a high standard.

Silver City Minerals, a base and precious metals explorer, drilled 21 holes - for a total of 1829 metres - close to the old Allendale mine to test for mineralisation.

Managing director Chris Torrey said initial results were, to his knowledge, the “most significant published” from Broken Hill-type mineralisation in the district - outside the Line of Lode - since 2004.

“It is excellent to see such encouraging high grade results so close to the surface in our first-pass drilling program at Allendale,” Mr Torrey said.

“While we are still waiting for completed assays, these results ... suggest the presence of a number of well mineralised horizons.”

Mr Torrey said that a significant portion of the mineralisation sat on “the margin of a distinctive amphibolite rock” which has been mapped extensively, providing an excellent target for future exploration by the company.

“Geological and structural modelling of this unit has commenced and will greatly assist in targeting holes for the next important round of drilling that has the potential to locate near surface, high grade base metal and silver resources.”

Before 1990 the Allendale mine produced about 20,000 tonnes of massive sulphide rock with grades similar to those recorded on the line of lode.

The company has also completed drilling at the Allendale South, Steakhouse and Sinclair’s prospects, with results from these holes pending.

Silver City Minerals, whose chairman is former CBH Resources managing director, Bob Besley, listed on the Australian Stock Exchange (ASX) in July after its public offering raised $9.8 million.

When it announced the drilling program at Allendale in July, the company said it would be the first of six planned for the district in the next six months.

Broken Hill Prospects, meanwhile, completed over 1800 metres of drilling at Pyrite Hill where previous drilling defined an inferred resource of 10.6 million tonnes (containing 2.2 pounds per tonne of cobalt) within 100m from surface.

The company, which listed on the ASX in February, said zones of mineralisation were intersected in all eight of the drill holes with semi-massive to massive pyrite present in most.

Managing director Ian Pringle said assaying, interpretation and reporting was expected to be completed early next month.

 

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