MARCH 2022 QUARTERLY ACTIVITIES REPORT
DATELINE RESOURCES LIMITED
(ACN 149 105 653)
ASX Code: DTR
Dateline Resources Limited (ASX: DTR) (Dateline or the Company) is pleased to provide an update on its activities for the March 2022 quarter. The Company's focus during the period was the commencement of gold mining at the Gold Links Project in Colorado and planning exploration activities at the Colosseum Gold Mine in California.
HIGHLIGHTS
CAPITAL STRUCTURE
Gold Links Gold Mine
Share Price (27/04/22) $0.125 Shares on issue 443 million Market Cap $55.3 million
• Development ore mining commenced, with ore transported to the Company's
Lucky Strike mill for commissioning and processing.
MAJOR SHAREHOLDERS
• Installation of additional milling and flotation capacity is progressing, with commissioning of this new equipment planned for the June quarter.
Southern Cross Exploration NL 21.8%
• New mining fleet acquired from Komatsu USA
Mr. Mark Johnson AO 19.8%
National Nominees Ltd 11.9%
• Transition to 'owner mining' planned for late April, with experienced mining team recruited.
Stephen Baghdadi 5.9%
DIRECTORS & MANAGEMENT
• Underground diamond drilling continued to intersect high-grade mineralisation with results including:
Mark Johnson AO Chairman
o CRG21-038: 1.54m @ 18.44g/t Au & 16g/t Ag
o CRG22-002: 1.55m @ 14.6g/t Au & 29.3g/t Ag
Stephen Baghdadi Managing Director
o CRG21-042: 0.5m @ 30.04g/t Au & 274g/t Ag
Greg Hall Non-Executive Director
Colosseum Gold Mine
Tony Ferguson Non-Executive Director
• Rare earth exploration continued in the quarter, with REE experts visiting site and commencing a sampling and mapping program.
Bill Lannen Non-Executive DirectorMark Ohlsson Company Secretary
• Exploration drilling around the existing open pits completed early in the June quarter.
CONTACT
• Results expected in May 2022 with a JORC-2012 Mineral Resource estimate planned for the June quarter
Mark Ohlsson
Phone: +61 2 9375 2353 Postal Address: P.O. Box 553
Corporate
South Hurstville NSW 2221
Email:info@datelineresources.com.au
• At the end of the quarter, the Company's cash balance was $3.3 million.
Commenting on the progress during the quarter, Dateline's Managing Director,
Stephen Baghdadi, said:
"Dateline checked off another milestone during the quarter when we commenced ore mining at Gold Links and transported ore for processing.
"Commissioning is progressing well, and we expect the new processing capacity to come online in the June quarter, setting us up nicely for a big second half.
"At Colosseum, the rare earth exploration is throwing up some significant priority targets for testing."
Gold Links Gold Mine, Colorado
Gold Links hosts a swarm of high-grade narrow gold veins over more than 5km strike length and a kilometre across strike. Historical mapping and drilling coupled with the Company's own exploration work has confirmed mineralisation is extensive throughout the Project.
The Company has commenced ore mining at Gold Links with first gold-in-concentrate sales planned to occur during the June quarter. High-grade stoping ore is being blended into the processing ore stream with the head grade and production expected to increase during the June quarter.
Additional milling and flotation capacity is currently being installed and is expected to be brought online for further commissioning during the June quarter.
Production and operating cost data will be provided in the June quarter, representing a full quarter of production.
Underground Exploration
During the quarter, the underground drilling program was aimed at extending a known mineralised zone that was drilled between 1975 and 1985. The drilling has been successful in extending mineralised zone.
The strike between the northern and southern most drillhole in Discovery Zone 1 is 112 metres and the distance between the highest and lowest mineralised drill hole is 128 metres. All geological indications are that the vein continues at depth and to the north.
Results announced during the quarter included:
CRG21-038 returned an assay result of 1.54 metres of 18.44g/t Au and 16g/t Ag. This drillhole was designed to test the southern extension of the 2150 vein and is 76 metres south of drill hole CRG17-1. CRG17-1 was drilled by the Dateline Resources in 2017 and is currently the northern most hole that has been drilled by Dateline from underground.
CRG22-022 returned an assay result of 1.55 metres of 14.6g/t Au and 29.3g/t Ag. This drillhole was 23 metres down-dip of CRG21-042
CRG21-042 returned an assay result of 0.5m of 30.04g/t Au and 274g/t Ag. This hole was designed to test the lateral consistency of the vein.
Figure 1 - Long section view of ore zones annotated - Gold Links Project scale is in feet
Colosseum Gold Mine, California
The Colosseum Gold Mine is in the southern section of the Walker Lane Trend in California, USA. The Walker Lane Trend hosts numerous substantial discoveries including the Corvus Gold owned 1.7Moz Mother Lode deposit and the 6.5Moz Castle Mountain gold mine owned by Equinox Gold (located 50km to the Southeast of Colosseum).
The primary activities for the March quarter included surface sampling and planning of field work and rare earth specialists conducting a site visit to the project.
Figure 2: Colosseum location relative to other operating mines and significant discoveries
Drill Planning
During the quarter, the Company progressed drilling plans for Colosseum, aimed at validating the historical drill database, testing below the previously identified mineralised zone and assessing water quality in and around the open pits.
The drilling program commenced in April 2022 and results will be reported during the June quarter
Rare Earth Potential
During the quarter, two US rare earth specialists, Anthony Mariano Jr. and Anthony N. Mariano, PhD., visited the Colosseum Project to complete a field visit looking at the rare earth potential of the project. Dr Mariano has previously investigated Mountain Pass and the surrounding region.
Post quarter end, the Company announced that the site visit and subsequent analysis highlighted that rock types within the claim area show similar geological properties to the nearby Mountain Pass REE Mine. Further mapping is planned with the aim of drilling high priority targets in H2 2022.
CORPORATE
Cash at bank
At the end of the quarter, the Company had cash and investments of A$2.6 million.
Litigation
The Gold Links mining contractor has commenced legal action against the Company for US$850k, whilst the Company is claiming a similar amount pursuant to our rights under the mining contract.
JUNE QUARTER - PLANNED ACTIVITIES
During the June quarter, the Company intends to undertake the following activities:
Gold Links Gold Mine
• Continued production from 9900RL Mineral Resource
• Commissioning of the expanded circuit at Lucky Strike Mill
• Commencement of owner mining with new Komatsu equipment
• Commencement of the sale of concentrate from Gold Links
• Ongoing drilling of high priority underground targets
Colosseum Gold Mine
• Initial drilling program (almost completed as at date of writing of this report)
• Reporting of drilling results
• Initial JORC-2012 Mineral Resource estimate
• REE mapping, sampling and planning
Authorised by the Dateline Board.
For more information, please contact:
Stephen Baghdadi Managing Director +61 2 9375 2353www.datelineresources.com.auAndrew Rowell
White Noise Communications +61 400 466 226andrew@whitenoisecomms.comFollow Dateline on Twitter:
https://twitter.com/Dateline_DTR
About Dateline Resources Limited
Dateline Resources Limited (ASX: DTR) is an Australian publicly listed company focused on gold mining and exploration in North America. The Company owns 100% of the Gold Links and Green Mountain Projects in Colorado, USA and 100% of the Colosseum Gold Mine in California.
The Gold Links Gold Mine is a historic high-grade gold mining project where over 150,000 ounces of gold was mined from high-grade veins. Mineralisation can be traced on surface and underground for almost 6km from the Northern to the Southern sections of the project. Ore mining commenced in late 2021, with first saleable gold concentrate produced in April 2022.
The Company owns the Lucky Strike gold mill, located 50km from the Gold Links mine, within the Green Mountain Project. Ore is transported to Lucky Strike for processing.
The Colosseum Gold Mine is located in the Walker Lane Trend in East San Bernardino County, California and produced approximately 344,000 ounces of gold (see ASX release 15 March 2021). Significant potential remains for extension to mineralisation at depth as well as potential for rare earth elements.
Competent Person Statement
Sample preparation and any exploration information in this announcement is based upon work reviewed by Mr Greg Hall who is a Chartered Professional of the Australasian Institute of Mining and Metallurgy (CP-IMM). Mr Hall has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to quality as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Mr Hall is a Non-Executive Director of Dateline Resources Limited and consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.
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Dateline Resources Limited published this content on 29 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2022 06:11:07 UTC.