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Drilling programs under way

Round Oak Minerals has commenced exploration drilling campaigns at its key mines and development projects.

At the Jaguar zinc and copper operation in Western Australia, a 29 hole, 7,582 metre Reverse Circulation drill programme is being undertaken.

The drilling is predominantly at exploration targets in corridors or gaps between existing known deposits at Bentley, Jaguar, Teutonic Bore and Triumph.

The aim of the program is to identify new deposits to extend the mine life of the Jaguar operation.

Drilling was carried out by contract drilling company Raglan Drilling and was recently completed, with base metal mineralisation identified in seven holes, including a 15m intersection of semi-massive sphalerite (zinc) mineralisation from 278m in Bentley North. Drill samples have been despatched for assay.

Down hole geophysical surveys will be completed in due course, with follow up RC and diamong drilling to be conducted based on the results of the initial program.

Separately at Jaguar, an area to the west and parallel to the belt of known deposits is being investigated through a program of 87 Air Core drill holes.

Known as the Western Rhyolite, the area is approximately 15 km long and considered likely to be a faulted off-set or fold-repeat of the main known prospective horizon. It therefore represents a substantial untested exploration zone with the potential to host a new hydrothermal system.

The 87 holes (approximately 7000m) have been designed in a series of nine traverses and drilling is approximately 50% completed.

At Round Oak’s Barbara mine in north-west Queensland, a six-hole drilling campaign is under way to test the unexplored area between the two previously mined out North and South open pits, as well as the continuity of ore at depth beneath the South Pit. The Barbara mine was placed on care and maintenance earlier this year after open pit mining ceased, with some of the higher ore grades encountered in the bottom of the pit.  The resource is known to continue below the completed pits and the current drilling program is designed to investigate the potential for underground mining and mine life extension.

At the Mt Colin mine near Barbara, diamond drilling has been undertaken to identify remaining resource extensions beyond the current planned life of mine, with the program expected to be completed in August.

Round Oak’s main development project, Stockman in Victoria, currently has a diamond drilling program being undertaken as part of the Definitive Phase Study. The program is designed to increase the confidence in the resource, identify potential additional resources and provide samples for metallurgical test work.

Metallurgical test work samples are being collected at the Currawong deposit where five holes are being drilled, with four already completed. Infill drilling is also being conducted at both the Wilga and Currawong deposits from surface collars, with 13 holes planned at Wilga for 1550 metres and 16 holes at Currawong for 4070 metres. The holes for the metallurgical samples are expected to be completed in August and the infill program is scheduled for completion by the end of the current year.

Round Oak CEO Rob Cooper said he was delighted with the progress being made with the drilling programs.

“Our key assets have exciting potential for growth and mine life extensions and we expect that these drilling programs will provide ample opportunities for additional resources to be identified, particularly at the Jaguar operation.

“Already we have seen some encouraging results and we look forward to reporting them formally in due course and incorporating them into our resource models and future mine plans,” he said.

White Dam sale

Round Oak Minerals has sold its 50% interest in the White Dam copper-gold project in South Australia to the company’s joint venture partner in the project, GBM Resources Ltd.

Round Oak will receive a cash payment of $500,000 for the sale and a refund of $1.9 million in environmental bonds which will be replaced by GBM.

In addition, Round Oak will retain an entitlement to a royalty payment on any future copper and gold production revenues and GBM will assume environmental liabilities for closure. The transaction is scheduled for completion on July 29.

CEO Rob Cooper said White Dam had been an excellent asset for Round Oak since 2003, when Round Oak’s predecessor company Exco Resources first became involved with the project.

“We are delighted to have been involved with White Dam for such an extended period, and would like to thank the team at White Dam who have overseen significant improvements in the operation.  We look forward to seeing GBM continue to grow the project successfully into the future,” he said.

The White Dam operation is located in the Olary Province of South Australia, on the southern margin of the Curnamona craton, 80km south-west of Broken Hill in NSW.

The operation consists of open pit mines, a dump/heap leach, gold and copper extraction facilities, and related infrastructure. Over its life the operation has produced approximately 175,000 ounces of gold from approximately 7.5 million tonnes of ore at a grade of 0.94g/t Au, mined from two open pits – Hannaford and Vertigo.  The recently constructed SART (sulphidisation, acidification, recycling and thickening) plant is also producing a copper concentrate and recycling cyanide that can be used in the gold circuit.

Stockman Definition Phase Study

The Round Oak Board has approved funding for the Definition Phase Study for the Stockman Copper-Zinc Project in Victoria. The Definition Phase Study is expected to be completed by the end of the first quarter of 2022 and is the final step prior to project construction.

The objective of the study is to assess a number of enhancements to the current base case of the Project. The main site activities will include a diamond drilling program to collect samples for metallurgical test work, which will use existing drill pads and access tracks. All primary approvals are in place for the development of the project and the secondary approvals required to progress to construction will be obtained as part of the Definition Phase Study.

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