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continuation

Although it may seem rather pedantic to be concerned what type of mineralisation is evident at APTA it is fundamental to evaluating the potential of the prospect. Brad will of course be fully aware of that so must have good reason to advocate the epithermal model despite all the previous conclusions in favour of a VMS origin. I hope so for his sake as the CEO of Agnico is on record as saying VMS was one of his targets in Colombia.
AGEOS

Having listened to Brad's Turner Pope webinar presentation via the OMI website for the first time today, I am prompted to add a post-scrip to my APTA post of last Friday, 11th Dec .Brad begins by saying he wont say much about the geology due to the mixed audience, but succeeds from my viewpoint as a geologist, in throwing in a significant anomaly.

He began by stating that the mid-Cauca belt is characterised by two types of mineralisation, low-grade high volume porphyry and high-grade epithermal vein deposits which are off-shoots from porphyry and similar intrusive igneous bodies, both types being of Late Miocene age [ 9- 5.6M yrs]. True but why leave out the third type, high-grade low volume VMS [Volcanogenic Massive Sulphide] deposits, which are numerous but of earlier, late-Cretaceous age [100-110M yrs]? The Atico Mining Corp which specialises in VMS projects lists 15 such targets on its El Roble Mine property SW of Medellin and significantly cites ANZA [presumably APTA since there is no alternative] as also being of VMS type.

Brad reinforces this apparent disregard of VMS style mineralisation later when discussing the APTA prospect. With the vertical section [page 9 of the published presentation] on the screen, he refers to the mineralised zones as “veins”, in the context of talking about “epithermal mineralisation”, the apparent implication being that he considers APTA to be an epithermal vein deposit. This is contrary to the unreserved VMS conclusion of the 2010 Snowden Report and the Interpretation and Conclusions of the 2019 NI 43-101 Report which begins “The geological information indicates that the direction of Minera Anza and its recent use of the VMS model has created positive results. The work confirms that mineralisation is related to a hydrothermal system ….. “

The latest published update from the company is the Oct 14th 2020 Annual Information Form lodged on SEDAR, which due to poor editing I have had to amend to make sense, but states:

“...drilling confirmed that gold and sulphide mineralisation are associated with a structurally controlled hydrothermal system (fault and breccia zones). Drilling also identified three units as carriers of gold mineralisation; silicified matrix-supported breccia with pyrite / sphalerite / chalcopyrite disseminated in the matrix and veins; fault zones with similar sulphides and laminated mudstones or tuff cut by quartz-sulphide veins.” “...all of the gypsum and metalliferous sulphides discovered to date are hosted in intermediate pyroclastic rocks.” All supportive of VMS type.

To be continued

Professor1, thanks for your response. You are correct in your recollection from Brad's interview [as confirmed also by DrR] but note that Brad was referring to the licenses [Contratos de Concesiones] for those areas within which the La Cejita and Jesuitas targets are situated, not the permits for drilling and associated interventions which cannot be issued until the Concessions are granted and ratified.

Applications for licenses [Concessions] are submitted to the National Mining Agency [ANM] and if successful are subject to ratification or refusal by the regional government of the Department of Antioquia in which ANZA is situated. OMI has four such applications pending.

I have posted [ 01.09., 18.09., 03.06., 27.05.2020] in detail on both the ICQ-080035X application which relates to La Cejita and was subject to a legal judgement dividing the Concession into two, and to the application process in general. Since the Antioquia authorities have not ratified any Concessions since 2015 this may not be as routine a procedure as implied in Brad's interview.
However, in anticipation of the obvious response; why would Newmont and Agnico get involved if they didn't have confidence in a successful outcome?

Karl345345, I guess you are referring to a post dated 24.07.2020 regarding the Newmont – Minera Anza agreement, in which I highlighted section 8g [page 16] which defines a process for integration of all the ANZA Concessions to ensure synchronicity of mineral exploration. The Agreement is clear to the extent that I was able to post in paragraph 5, “Without Concessions for all the area to which the Agreement relates, the process of integration cannot proceed and Newmont cannot meet its year 3 (and 4) objectives regarding subsurface exploration ie drilling, unless plans are revised and only those areas for which current Concessions exist are targeted.” That was correct at the time I posted it, and obviously Newmont subsequently decided to revise plans and begin drilling areas for which Concessions do already exist, thereby disregarding the process of synchronising mineral exploration as defined in the Agreement.
If you considered that as a bearish stance on my part, I suggest you failed to disassociate the message from the messenger.

Karl345345 your recall is incorrect, at no time have I stated “there is no way drilling will commence until all licenses are secured for the whole project” since that would have been manifestly untrue.

I have however stated on several occasions that no drilling can or will be permitted in those regions of ANZA for which OMI do not hold 'Contratos de Concesiones' which currently relates to half of the 217 hectare ANZA area, including the whole of the La Cejita and Jesuitas targets. As I have posted extensively on the legal and practical implications of those outstanding Concession Applications I refer those interested in the facts to my post history.

Withdrawal of your incorrect allegation would be appreciated.

DrR the 0.5m oz Au indicated plus inferred resource relates to the 71 legacy holes at APTA, as I would have thought is crystal clear. The calculations on which that is based are detailed in three lengthy posts dated 13th Oct 2018 which can be accessed by clicking on AGEOS top left and scrolling back to page 10. My answers to questions arising are in a fourth post later that day.
As I have posted before, my calculation of c0.5m oz Au at APTA is endorsed and quoted by colleagues at Outcrop Gold which has title to the Pantagora area , three times the area of ANZA and occupying all the terrain from ANZA north to Buritica.

continuation:

With regard to the current 2400m, 2-rig, drill programme, as confirmed on page 11 of the presentation, the obvious drill targets are the potential down-dip extensions of those portions of the high-grade zones which remain open at depth. Six holes of 400m average depth, drilled from the eastern margin, inclined westwards would test for those extensions. None of the legacy drilling N and S of the high-grade zones provided evidence of further extensions in those directions. If the down-dip extensions are confirmed and the grades maintained at the current average of 3.2 – 3.7g/t Au, the approx 500.000oz Au max resource I calculated in 2018 is feasible. That might satisfy the “legacy project” requirement defined in the Newmont/Orosur agreement as being due to OMI but in the absence of a second and more substantial multi-million oz Au discovery, would not ensure Newmont's continued interest in ANZA. I suspect Agnico would decide likewise.

If this doesn't engender at least some doubt in the minds of those who persist in advocating multi-million oz Au predictions for APTA then I could add masses of other supportive geological evidence. However I realise that evidence of metallogenesis and the tectonic and stratigraphic chronology, vital as it is in understanding APTA and other ANZA targets, would be wasted here. I withhold that in recognition of those for whom factual evidence carries no weight when it contradicts cherished belief and have no doubt that their absurd baseless predictions of Au resource for APTA and elsewhere will continue to blight this forum.

What value is a life-times knowledge and experience as a geologist when confronting the 'mystic meg' predictions of Bob Moriaty and his kind?
AGEOS

The recent Turner Pope webinar and consequent updated website presentation produced no great surprises and is personally reassuring in confirming much of what I have concluded and posted during the last two years regarding the ANZA project. Since my initial post in Oct 2018 detailing estimates of the Au resource at APTA and subsequently highlighting the prospects of the additional four SGA [Sediment Gold Anomaly] targets, I have remained positive regarding OMI's potential. However, investor expectations as evidenced by many posts on this forum, continue to be at variance with the geological data which is clearly misunderstood by most.

In an attempt to redress some of this misunderstanding I will refer here to the APTA target and the current drilling program, quoting in evidence directly from the presentation entitled Orosur Mining Ltd – next chapter Anza Gold Project December 2020 pages 1-13.

To understand the potential of the APTA target it is essential to have a mental image of the form and dimensions of the mineral deposit. The map on page 8 of the presentation shows the inferred interface of the four 'High Grade Au Zones' with the ground surface. The traces of 33 of the 71 legacy drill holes, including Au g/t assays, are superimposed. A vertical 400m E-W cross-section through the northern end of the most westerly of the high-grade zones is shown on page 9. Its location on the map is through holes 53 and 43 [and holes 62,60,70 not on map], which intercepted by far the thickest zone of the deposit. The combination of cross-section and map should allow those able to envisage 3D, to construct a visual image of the whole deposit. In the simplest terms, the high-grade mineralisation is confined to three parallel sheets, inclined at c45 degrees E, each approx 300m N-S and varying in dimension down-dip, with an isolated 150m slab further south similarly inclined eastwards.

I have the advantage of a computer simulation model capable of producing 2D and 3D images of the 'high-grade Au zones' within a structural and stratigraphic framework. That shows subdivision of the three zones locally into four and five zones. Also it allows block modelling to provide tentative resource estimations as outlined in my Oct 2018 calculation.

To be continued

I see you've been having trouble understanding use of the term "massive". Nothing new as it is invariably misunderstood since the geological meaning depends on context. In the case quoted the word refers to the !quartz" not to the "quartz vein" and in that sense it is describing the quartz as being "isotropic" or as I described it in a previous post, as being "non-crystalline" or "lacking crystal form".
Two other words for non-geologists to avoid using or attempting to understand in relation to mineral deposits are "strike" and "open" as in a deposit being described as "open in all directions", "open along strike" or "open down dip". The misuse and misunderstanding of these terms on these forums is legion.
AGEOS

Rimsha, if I should be so flattered as to have been the source of the 'summary' you seek just click on AGEOS [top left] for access to previous posts.
I did refer briefly to Tunisia potential on 14.06.2020 & 22.04.2020 but if recollection is correct have only made brief and scattered reference to Congo prospects so maybe MarketGunslinger was the author of that.
When those acquisitions are confirmed I will however post more comprehensive information on both as I have access to technical data unavailable to non-specialists. Best wishes.
AGEOS

“No one saw the placing coming.” Not so DrRemington. Paragraph four of my post of 31.07.2020 concluded that since company accounts showed that over $1m of receipts from Newmont had been spent on corporate and administrative expenses during the 9 months to 29.02.2020, there was a question mark over how C & A expenditure would be funded after Sept 2020 when the last cash payments from Newmont would be received. A placing was the obvious answer to that question. Needless to say no one on this forum responded.
I make no further comment, in expectation of the usual abuse anticipated on this forum.
AGEOS

Spot-on Ezhik. Zenith Netherlands will be receiving the full revenue stream from Sidi El Kilani having now met its financial obligations to both CNPC and KUFPEC. The outstanding CCH approval is a legal transfer of seller's rights and should not affect the revenue stream. Zenith Netherlands will be joint operator, with ETAP, of both the SLK Concession and the much larger North Kairouan Permit so a considerable potential in store as I've indicated in previous posts.
Good to see you read the OMI runes correctly. Best of luck.
AGEOS

Check facts before drawing conclusions. Interest in Sidi El Kilani Field is 45% [22.5% ex-CNPC + 22.5% ex-KUFPEC].
Total production is oil @ 529-566 bbls [daily production last week]. And gas at 2.2-2.5M m3 per day.also last week.
AGEOS

continuation:

With regard to pozzolan the market is far more complex and is perhaps best viewed as a market for a variety of ore varieties all with varying pozzolanic properties. Lassenite and HessPozz are two of the more significant high-silica variants I've detailed in previous posts and even the fines from CS perlite may be marketable as a high silica pozzolan or as a constituent of such [ref RNS 27.10.2020]. Despite the range of variants and the very considerable volumes potentially available it appears that the CS pozzolan may be very well placed for securing at least a portion of the Nevada cement market. I outlined the technical basis for this on 22.05.2020, a post, the significance of which, may have escaped the attention of most.

In summary, a Nevada Dept of Transport [NDT] Research Report ranked a local natural pozzolan with a chemical signature very similar to that of the CS pozzolan [it could have been a CS sample] as the best for mitigating ASR-induced expansion in concrete mixes using 7 Nevada-sourced aggregates. That elevates the CS pozzolan to the top category for any concrete manufacturer using the same or comparable aggregates. With the Nevada Cement Co's Mustache Mine at Fernley [the only operational pozzolan mine in Nevada and strongly opposed by Fernley residents] having reduced output to 959 tons in 2019, it is possible that the large scale pozzolan grinding test and concrete pour mentioned in the 16th Nov RNS is a joint operation. NCC have a road surfacing contract with NDT and the SRES consultant Tom Adams is an ex-NCC geomaterials engineer. Whilst the pozzolanic market provides stiff competition [ see 14.09.2018 post re Geofortis patents re Lassenite], the mineralogical and therefore physico-chemical variation in natural pozzolan deposits should allow plenty of opportunities for the CS pozzolan to find a market niche.

A somewhat extended reply to your question, Dubliner, but hopefully of use. Best wishes.
AGEOS

Dubliner, thanks for the response and question re the CS Project.

With regulatory approvals and initial finance in place, and mine-build operations underway, clearly much of the initial uncertainty in the CS project has now been allayed. Both products, perlite and pozzolan, have met industry test standards for a range of applications and there is a substantial ore resource with significant reserves of perlite at New Pearl and Jackson Wash. The focus now is on potential sales and production.

All evidence continues to indicate a favourable market for future perlite sales from a current stable base. The latest US Geol Survey data, for 2019, shows processed crude ore mined in the USA as 480,000tons, from 8 mines in 5 western states, with New Mexico and Oregon the main producers. An additional 200,000tons was imported. Both totals reflect a fluctuating but gradual increase over five years. Applications for expanded perlite in 2019 are listed as, construction products 58%, fillers 18%, horticulture 16%. Marijuana cultivation is listed as an increasing market. Significantly, an unnamed [ie CS] “perlite deposit in Nevada” is the only new perlite project listed for the whole USA.

The Nevada Bureau of Mines lists only one perlite mine as operational in the state in 2019 ie Tenacity Perlite Mine, Lincoln County, Wilkin Mining, 2213 tons mined. There are 56 perlite expansion plants in the USA so the 20-30 tons of CS raw perlite distributed to 5 plants for testing to date is an encouraging start. Hopefully that includes one or more of the Nevada based Lovelock, Fernley and Clark perlite/diatomite processing plants acquired by US Silica Holdings from EP Minerals in May 2018 [see 02.09.2018 post for background details] especially as US Silica appears to have closed, in 2019, its Fallon Perlite Mine in Churchill County, its only previously operating Nevada mine.

to be continued

Thanks for the generous response to yesterday's effort. Balm to the soul after the abuse received on OMI. Gold punters seem totally averse to geological realities. Not consistent with the 'fairy dust' concept of gold genesis I guess.

SGD27 yes, Bay State is complicated by the existence of historical workings, both since the workings may require conservation and may also offer mine safety challenges. The resource will be relatively expensive to prove up, requiring at least an 18 hole, 3800m initial drill programme to acquire HQ size core, using a triple tube core barrel, and a down-hole Reflex core orientation tool which allows subsequent structural analysis of samples. A second drill programme would also be required, for resource definition. Hopefully revenue from CS will allow reactivation of the project..
AGEOS

continuation:

If assay produces encouraging Ag-Au results from the quartz veins and breccia, with insignificant supergene enrichment, I anticipate Clayton will be upgraded to being worthy of further exploration with a possible epithermal target in mind. This would require deeper drilling and so would probably be added to the list of projects open to joint venture operation with the longer term option of in-house development as and when funds become available.

Those who have followed this forum since late 2017 may recall that I posted the first detailed CS Project resource calculations in November of that year so it is pleasing to see mining production imminent and the prospect of revenue and/or capital to initiate other projects in sight. In that latter respect those who have been here since 2015 will recall the Bay State Silver Project, my original incentive for SRES interest, and hopefully soon eligible for further exploration as finances allow.

Those who were salivating over the 4.8oz/t Ag from CL-15 at Clayton should bear in mind that Bay State in the 1900's was producing at >100oz/t Ag and the assays from the 2015 3-hole drill campaign indicated according to my conservative calculations, an inferred resource of 1.24M oz Ag from 104,189 tons ore at an average of 11.94oz/t Ag. The potential resource is much greater but requires deep drilling of the Chihuahua and Lincoln vein systems for which financing is now hopefully in sight. I look forward to the opportunity to enlarge on this and other Au-Ag prospects in the near future.

For those unfamiliar with my contributions, I am a geologist with over fifty years experience of exploration globally. I post infrequently and recently somewhat cautiously, due to the increased frequency of unpleasant responses. Questions are welcome but replies may be delayed. Best of luck to all.
AGEOS

The latest RNS regarding the Clayton Silver Project, brief as it is, nevertheless provides a clear indication of the mineralogical potential under consideration so this is perhaps an appropriate time to offer this contribution. As a reminder, the relevant words from the 16.11.2020 RNS regarding the 20CLDD001 core log are as follows:
“Massive quartz vein and quartz breccia intersected in target zone between 83.52m and 91.44m downhole (true thickness unknown) containing fine grained disseminated sulphides including mineral logged as the silver sulphide mineral acanthite.”

This mineral association, whilst not diagnostic, is strongly indicative of moderately low temperature, low sulphidization, epithermal mineralisation, and in terms of mode of formation implies, mineral emplacement by aqueous fluids emanating from a nearby magmatic source. Quartz is the host and carrier [note, 'massive' means 'not crystallised and physically undifferentiated', not 'huge'] and together with the low temperature minerals acanthite and pyrite, suggests fluid origin from a relatively shallow depth.

Assay and analysis will determine the silver [Acanthite is 87% Ag] and gold content [4.8oz/ton Ag and 0.4g/t Au over 7.6m in the CL-15 historic hole] but more importantly will hopefully assist in the determination of what proportion of the Ag-Au mineralisation is of primary [ie epithermal] origin and how much, if any, is due to supergene enrichment. Such secondary, supergene enrichment is often localised and so can provide misleadingly enhanced assay results. If it has occurred at Clayton it will have been due to meteoric water [ie terrestrially derived] having leached out silver from the overlying volcanics and percolated down to react with sulphides in the quartz. It is the proportion of silver of primary, epithermal origin, together with the gold [Mineral Ridge has an Ag/Au ration of 2/1] which will determine further development or abandonment.

To be continued

Please ignore as not relevant to RSA, and apologies to all for using this as a means of contact.

Wolfbag2, I am 'aegos' [a corruption of ageos] and have no connection with anon1234. I am a geoscientist and former CEO with 50 years experience in global exploration geology.. Click on AGEOS and scroll back to Oct 13. 2018 for beginning of OMI coverage. Best of luck with your investments. No need to respond.

The following extract from my post of 09.08.2020 may assist in understanding ZEN's current field operational capacity all of which will now be directed towards African interests.

For those unaware, Zena Drilling is a wholly owned subsidiary, registered in the UAE, with office and depot in Baku, Azerbaijan. Assets include a twice-upgraded A80 workover rig, an A-100-ton truck-mounted 375HP workover rig, a BD-260-ton Robotics [Italy] drilling rig with 4600m [since upgraded] drill-depth capacity [purchase cost = £2m] and c£1m worth of spares and ancillary equipment [£650K Robotics]. It also has a lease/purchase agreement in place with Olieum Services for a BQ500 2000HP Robotics automated hydraulic drilling rig with 6300m drill depth capacity. This agreement has an initial 6 month 'no leasing-cost grace period' plus operating crew.
Zena Drilling also appears to have retained at least 7 staff through the present crisis and its current operating costs are presumably met from the $1.2m which was due from SOCAR to Zenith Aran, ZEN's operator subsidiary in Azerbaijan, earlier this year.
AGEOS