Doray Minerals Limited

Published : December 17th, 2015

High-Grade Gold Results Extend Wilber Lode

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High-Grade Gold Results Extend Wilber Lode

DRM Wilber_Nth_UGDD_results_nov2015


ASX Announcement

18 November 2015


HIGH-GRADE RESULTS FROM ANDY WELL HIGHLIGHT ADDITIONAL WILBER LODE MINE LIFE POTENTIAL

  • High-grade gold mineralisation intersected at Wilber North

  • Results of 3.7m @ 13.4g/t Au (estimated true width 1.2m) and 1.0m @ 10.8g/t Au (estimated true width 0.2m) extend Wilber Lode 50-100m north of previous drilling

  • Intersections extend the northern high-grade gold pod at Wilber Deeps

  • Follow-up drilling underway


Doray Minerals Limited (ASX:DRM, Doray) is pleased to announce that recent underground Diamond drilling at the Andy Well Gold Project has been successful in extending the zone of high-grade gold mineralisation to the north of the existing Wilber Lode Ore Reserve boundary, indicating the potential for further extensions to the Wilber Lode underground mine.


The high-grade Wilber Lode gold deposit was discovered at Andy Well by Doray in March 2010, has been in production since August 2013 and is currently the highest grade gold operation in Australia.


Historically, the northern edge of the Wilber Lode deposit has been defined by a cross-cutting Proterozoic dolerite dyke. Drilling undertaken as part of the recent Wilber Mineral Resource update (see ASX Release 30 September 2015) intersected high grades (1.5m @ 14.1g/t Au in WBUG0785) along the northern boundary of the Resource, however a suitable drill location was not available to enable further drill testing in this area at the time.


Following subsequent completion of underground development in the adjacent area, recent drilling has successfully intersected further high-grade gold mineralisation in a quartz lode on the northern side of the Proterozoic dyke and 50-100m north of any existing drill intersections of the Wilber Lode.


Doray's Managing Director, Mr Allan Kelly, said that the recent drilling will have a significant impact on the current interpretation and development plans for the Wilber Lode mine and appears to confirm the presence of a new coherent high-grade gold zone in the orebody.


"These results support our long held belief that the Wilber Lode mineralisation would continue north of the dolerite dyke and that it was only a matter of time before we confirmed that," Mr Kelly said.


"It appears that the high-grade gold mineralisation that has been mined to date in the northern panel at Wilber remains completely open down plunge to the north and appears to be shifting further north at depth," he added.


"This means the current Indicated Mineral Resource, and associated Ore Reserve defined for planned mining at Wilber Deeps, can be expanded to the north with the potential for a corresponding overall increase in the high-grade inventory at Andy Well".

Wilber North underground Diamond drilling


A programme of underground Diamond drilling has recently been undertaken at Wilber North, drilling from the Wilber decline. This drilling was carried out utilising an LM75 drill, with holes drilled to NQ2 size. Two Diamond holes were drilled for 908m in total. This drilling is part of the first continuous and concerted in-mine exploration effort at Andy Well planned for the 2016 financial year. Drilling was targeting the northern boundary of the Wilber Lode which comprises the current Inferred Mineral Resource outline (see Figure 1).


The current interpretation is that high-grade gold mineralisation within the Wilber Lode exhibits an overall northerly plunge, and would cross over to the northern side of the cross-cutting dolerite dyke.


This recent drilling successfully intersected typical Andy Well-style mineralisation, with high-grade gold hosted in a quartz vein within sheared high-magnesium basalt. Mineralisation is typical of that being currently mined by underground methods at Wilber. Both intersections contained significant visible gold, with the intersection in WBUG0911 also exhibiting extensive galena and chalcopyrite mineralisation, which is typical of "bonanza" grade ore within the Wilber Lode. The variance in true widths is also typical of the Wilber Lode orebody, due to extensive development of boudinage textures within the quartz lode.


Significant results received include:


  • WBUG0911 - 3.7m @ 13.4g/t Au from 308.4mdh (est. true width 1.2m)

    • Incl. 2.0m @ 22.5g/t Au from 309.0mdh

  • WBUG0912 - 1.0m @ 10.8g/t Au from 395.0mdh (est. true width 0.2m)

    • Incl. 0.3m @ 33.3g/t Au from 395.7mdh


Ongoing Drilling at Andy Well


Doray is maintaining a sustained exploration programme at Andy Well, with a focus on both short and long term additions to mine life. As part of this programme:

JORC Code 2012 Edition Summary (Table 1) - Wilber Nth Deeps UG DD 2015

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria

JORC Code explanation

Commentary

Sampling techniques

  • Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

  • Diamond core (NQ2) sampled whole core, 0.3m to 1.2m. Whole core has been selected at Wilber due to the level of geological understanding around mineralisation not requiring the need to retain a library sample, and the greater sample size gained from whole core analysis with respect to assay repeatability

  • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

  • Drill core is measured by tape and compared to downhole core blocks consistent with industry standards.

  • Aspects of the determination of mineralisation that are Material to the Public Report.

  • Mineralisation determined qualitatively through: presence of sulphide in quartz; internal structure (massive, brecciated, laminated) of quartz.

  • Mineralisation determined quantitatively via fire assay.

  • In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

  • Diamond core samples crushed to 2mm and pulverized to 75µm.

  • All samples analysed by 25g Fire Assay and AAS finish

  • When visible gold is observed in Diamond core, this sample is flagged by the supervising geologist and a lab barren quartz flush is requested following the high grade sample. The quartz wash material is assayed and reported by the laboratory.

  • Blank sample material is submitted immediately following suspected mineralised samples

Drilling techniques

  • Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of Diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

  • NQ2 and BQTK sized underground Diamond drill core (standard tube) drilled to a maximum downhole depth of 425m.

Drill sample recovery

  • Method of recording and assessing core and chip sample recoveries and results assessed.

  • Core assessed during drilling for loss, loss intervals recorded on core blocks and logged by Geologist, and stored in DRM database.

  • Measures taken to maximise sample recovery and ensure representative nature of the samples.

  • Diamond drill holes collared from underground into fresh rock.


Criteria

JORC Code explanation

Commentary

  • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

  • Sample recoveries in Diamond core are nominally 100%, there is no known relationship between sample recovery and grade.

Logging

  • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

  • Holes logged to a level of detail to support mineral resource estimation: lithology; alteration; mineralization; geotechnical; veining

  • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

  • Qualitative: lithology, alteration, foliation

  • Quantitative: vein percentage; mineralization (sulphide) percentage; RQD measurement; assayed for gold.

  • Drill core is photographed both wet and dry.

  • The total length and percentage of the relevant intersections logged.

  • All holes logged for entire length of hole.

Sub-sampling techniques and sample preparation

  • If core, whether cut or sawn and whether quarter, half or all core taken.

  • NQ2 Core whole core - whole core intersections of mineralized zones are logged, marked-up, photographed and the sent for assay analysis

  • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

  • Not Applicable

  • For all sample types, the nature, quality and appropriateness of the sample preparation technique.

  • Diamond core is crushed to 2mm by a jaw crusher then the entire sample is pulverized to 75µm by a LM5 (85% passing)

  • Gold analysis is determined by a 25g charge fire assay with an AAS finish.

  • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

  • Pulp duplicates taken at the pulverising stage and selective repeats conducted at the laboratories discretion.

  • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

  • No duplicate sampling on this current drill programme. Whole core sampling has been instigated to improve sample representativeness.

  • Whether sample sizes are appropriate to the grain size of the material being sampled.

  • Sample size appropriate for grain size of samples material.

Quality of assay data and laboratory tests

  • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

  • Fire assay (25g), total technique, appropriate for gold

  • AAS determination, appropriate for gold.

  • OES for other elements.

  • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

  • No geophysical measurements taken,


Criteria

JORC Code explanation

Commentary

  • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

  • Certified reference material standards, 1 in 40 samples, 0.34 to 9.25 ppm, total 371 submitted, results considered acceptable.

  • Blanks: A lab barren quartz flush is requested following a predicted high grade sample (i.e. visible gold). Results for the quartz flush material are reported.

  • Blank samples are submitted to the laboratory following suspected mineralized samples

  • Duplicates:

o Lab: Random pulp duplicates are taken on average 1 in every 10 samples

Verification of sampling and assaying

  • The verification of significant intersections by either independent or alternative company personnel.

  • All sampling is routinely inspected by senior geological staff. Significant intersections are inspected by senior geological staff and DRM corporate staff.

  • 2% of samples returned > 0.1g/t Au are sent to an umpire laboratory on a quarterly basis for verification.

  • The use of twinned holes.

  • No twinned holes. Drilling is into an actively mined orebody, with extensive existing drill data.

  • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

  • Data stored in Datashed database on internal company server, logging performed on LogChief and synchronised to Datashed database, data validated by database administrator, import validate protocols in place. Visual validation in Surpac by company geologists.

  • Discuss any adjustment to assay data.

  • No adjustments made to assay data. First gold assay is utilized for any resource estimation.

Location of data points

  • Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

  • Collars: Nominal design coordinates reported pending final surveyed collar coordinates

  • Downhole: surveyed with in-rod Reflex tool.

  • Specification of the grid system used.

  • MGA94 - Zone 50; Wilber Local grid, rotated 45° east, along strike of Wilber deposit.

  • Quality and adequacy of topographic control.

  • Not Applicable

Data spacing and distribution

  • Data spacing for reporting of Exploration Results.

  • Data spacing nominal 50m x 100m staggered grid3

  • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

  • Data spacing for indicated material is approximately 50 x 100m. All other areas where sample data is greater than 50 x 100m is inferred.


Criteria

JORC Code explanation

Commentary

  • Whether sample compositing has been applied.

  • Samples taken on a 0.3 to 1.2m interval in Diamond core. No Sample composites taken.

Orientation of data in relation to geological structure

  • Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

  • Drill holes oriented at relative to the position of available underground access, and optimised to the dip of the orebody as much as possible. Sampling believed to be unbiased.

  • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

  • Not Applicable

Sample security

  • The measures taken to ensure sample security.

  • All samples are selected, cut and bagged in a tied numbered calico bag, grouped into larger polyweave bags and cable tied. Polyweave bags are placed into larger bulky bags with a sample submission sheet and tied shut. Consignment note and delivery address details are written on the side of the bag and delivered to Toll Express in Meekatharra. The bags are delivered directly to MinAnalytical in Canning Vale, WA who are NATA accredited for compliance with ISO/IEC17025:2005.

Audits or reviews

  • The results of any audits or reviews of sampling techniques and data.

  • Performance meetings held between a DRM and MinAnalytical representative are conducted monthly. QAQC data are reviewed with each assay batch returned, and on regular monthly intervals (trend analysis).

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

  • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

  • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

  • M51/870 is 100% owned by Andy Well Mining Ltd, which is a wholly owned subsidiary of DRM. M51/870 is located within the Yugunga- Nya Native Title Claim.

  • M51/870 Heritage surveys have been conducted over active mining and exploration areas

  • M51/870 is valid until 2033

Exploration done by other parties

  • Acknowledgment and appraisal of exploration by other parties.

  • Historic exploration was carried out on Wilber by Dominion Mining, Western Mining Corporation and Australasian Gold Mines, including geophysics, soil mapping and sampling, and drilling.

Geology

  • Deposit type, geological setting and style of mineralisation.

  • Project scale geology consists of Archean aged high Mg Basalt units intruded by north-south striking porphyry intrusives. These are cross cut by east-west striking Proterozoic dolerite dykes. The mineralized quartz vein cross cuts the Archaen units but not the Proterozoic dykes.

Drill hole Information

  • A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

    • easting and northing of the drill hole collar

    • elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

    • dip and azimuth of the hole

    • down hole length and interception depth

    • hole length.

  • If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

  • Previous drillhole data for Wilber has been periodically released to the ASX since 2010.

Data aggregation methods

  • In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

  • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

  • The assumptions used for any reporting of metal equivalent values should be clearly stated.

  • No top-cuts have been applied when reporting results.

  • First assay from the interval in question is reported (i.e. Au1).

  • Aggregate sample assays were calculated using a length weighted average

  • Intercepts are reported on a geological basis (i.e. where quartz veining is present).

  • No metal equivalent values are used for reporting exploration results


Criteria

JORC Code explanation

Commentary

Relationship between mineralisation widths and intercept lengths

  • These relationships are particularly important in the reporting of Exploration Results.

  • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

  • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

  • Drill holes oriented depending on available underground platforms for drilling. True widths have been calculated and reported to assist in interpretation.

  • Strike of Wilber Lode is 45° dipping to the west at 80°

Diagrams

  • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

  • Refer to longitudinal section attached

Balanced reporting

  • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

  • All holes drilled are reported.

Other substantive exploration data

  • Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

  • All meaningful and material data is reported

Further work

  • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

  • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

  • Further drilling is to be conducted down dip and along strike to the north of the existing Wilber resource.

Read the rest of the article at www.noodls.com
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Doray Minerals Limited

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CODE : DRM.AX
ISIN : AU000000DRM6
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Doray Minerals is a exploration company based in Australia.

Its main exploration properties are MEEKATHARRA NORTH, MINGAH, MAGNET NORTH, LAKE MAGENTA, ABBOTTS, WESTERN QUEEN, NUCKULLA HILL and HICKS in Australia.

Doray Minerals is listed in Australia. Its market capitalisation is AU$ 117.8 millions as of today (US$ 85.0 millions, € 74.5 millions).

Its stock quote reached its highest recent level on November 26, 2010 at AU$ 1.70, and its lowest recent point on December 08, 2017 at AU$ 0.16.

Doray Minerals has 357 089 984 shares outstanding.

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