This is the second in a two-part feature series.
This article is a sponsored feature from Mining.com.au partner Belararox Ltd. It is not financial advice. Talk to a registered financial expert before making investment decisions.
Belararox (ASX:BRX) has endured a challenging environment since listing in January yet as part one of this two-part series uncovered, the company has achieved its objectives by ‘sticking to the script’.
As Managing Director Arvind Misra explained in part one, the junior exploration company has done everything it told the market it would.
As a mineral explorer focused on securing and developing resources to meet the surge in demand from the technology, battery, and renewable energy markets, forging ahead has been the mantra of Belararox.
Belararox is an advanced mineral explorer focused on ‘high value’ clean energy metals and is focused on the Belara zinc-copper-lead-silver-gold project located 100km north-northeast of Orange in Central New South Wales.
During the September 2022 quarter, the company focused on completing its maiden drill campaign to deliver a Mineral Resource Estimate (MRE) at the Belara Project.
Testing for repetitions of massive sulphide mineralisation
Belararox has successfully delivered a 2012 JORC compliant Inferred Resource 5Mt at a 3.41% Zn-Eq over the historic mines at Belara and Native Bee. The second phase of drilling will assess the potential for extensions to known mineralisation and test for repetitions of massive sulphide mineralisation, with the aim of identifying additional Inferred Resources for Belara and Native Bee and to further assess the project’s economic viability.
According to Misra, the fact that Belararox established such a substantial resource in about 10 months since listing in January this year, highlights the strength of the mineralisation and the significant ongoing growth potential.
Misra notes that the company is confident there is significant inventory growth to come, with the mineralisation open in every direction and numerous ‘highly prospective’ targets to drill.
In addition, he adds, the MRE and exploration works to date have been delivered on time and within budget, highlighting the diligence and commitment of the whole Belararox team.
“We have completed a maiden Mineral Resource Estimate in accordance with JORC (2012) Code over the historic mines at Belara and Native Bee, also new drill ready targets have been identified along strike extensions of known Belara and Native Bee mineralisation which will require significant exploration drilling.
“Considering Belararox is fully funded for phase two drilling, we are in a very good position moving into 2023”
Considering Belararox is fully funded for phase two drilling, we are in a very good position moving into 2023.”
The MD notes that regional exploration techniques, both geological and geophysical, as well as new 3D geological models and 3D machine learning assisted computer modelling techniques, will be used to develop and prioritise new regional targets, with the aim of having a pipeline of potential resource targets ready for evaluation.
The company’s latest quarterly report stated that at the Belara Project, massive sulphide mineralisation intersected in multiple drillholes – many of higher grade, for zinc, copper, and lead, than in the historic model.
Significant recent drill results include:
- BLRC019D – 10.0m at 3.80% Zn, 0.25% Cu, 1.26% Pb, 46.50g/t Ag and 0.49g/t Au from 203.0m, including 5.0m at 4.95% Zn, 0.44% Cu, 1.84% Pb, 75.94 g/t Ag and 0.75g/t Au.
- BLDD028 – 5.0 m at 6.80% Zn, 1.19% Cu, 1.38% Pb, 55.82 g/t Ag and 1.10 g/t Au from 51.0m, including 3.0m at 11.17% Zn, 1.69% Cu, 2.25% Pb, 88.13g/t Ag and 1.68g/t Au.
Support from sophisticated and professional investors
During the past quarter, Belararox settled a placement which raised $3.85 million at $0.55 per share (before costs), in a capital raise that received strong support from both new and existing sophisticated and professional investors. The company had $1.09 million cash at bank as of 30 September 2022.
“The capital raising was really, really successful … there was a lot of demand and we were happy with how it all went.
“The capital raising was really, really successful … there was a lot of demand and we were happy with how it all went”
“When you look at our listing price of $0.20 we have come a long way and that is from the hard work our team has done to make sure we stick to the script.”
Misra notes that with the access to cash Belararox will be able to maintain the pace of drilling to unlock the full value of the Belara asset.
On 3 November, Belararox reported its maiden Mineral Resource Estimate (MRE) had been completed for Belara and Native Bee prospects with Inferred Resources of 5 million tonnes (Mt) at 3.41% Zinc equivalent (Zn-Eq). The MRE includes 1.82% zinc, 0.33% copper, 0.63% lead, 17.5g/t silver, and 0.21g/t gold at a 0.85% Zn-Eq cut-off.
The Zn-Eq calculation used for the MRE is based on preliminary metallurgical test results from early phase one drilling. The metallurgical recoveries are expected to improve based on ‘higher grade’ composites, which are more reflective of the average metal grades contained in the MRE.
As Misra notes, there is significant exploration potential with extensions to mineralisation at Belara, where mineralisation is open to the north and down-dip, with the prospect of identifying additional resources during planned phase two drilling.
Also, at Native Bee, Misra adds that a broader mineralised trend has been identified in a coincident Gradient Array Induced Polarisation (GAIP) – airborne magnetics first derivative (1VD) – Fixed Loop Electro Magnetic (FLEM) anomaly, which extends from the area of the MRE southwards over some 1,500m.
Phase two drilling aims to target the extent of this 1,500m trend and will aim to identify additional resources in the vicinity of the old Native Bee mine and assess for the potential of mineralisation extending further south. There is a 20km of structural corridor south of Belara and Native Bee where no exploration work has been carried out, and this trend includes the old Ben Buckley base metal deposit.
Belara a burgeoning prospective project
The Belara Project comprises 3 contiguous exploration licenses (one granted – EL9184, two subject of applications – ELA6176 and ELA6267) in central New South Wales (NSW). The tenements are prospective for volcanogenic-associated massive sulphide (VAMS) deposits as evidenced by the presence of 2 small historic underground mines (Belara and Native Bee) that extracted copper. EL9184 and the 2 pending licence applications are wholly owned by Belararox.
Belara occurs within a sequence of Silurian quartz-muscovite-albite phyllites and meta sandstone that overlie dacitic volcanics near the top of the Chesleigh Formation. The mineralisation occurs at the top of the phyllite unit. A gossan outcrops along the line of the historic workings at Belara. The rocks to the east of the Belara lode are composed of greywackes with minor conglomerate layers and fine-grained argillite bands. The greywackes are very acidic in composition and are interpreted to be reworked acid volcanic quartz-feldspar porphyries.
The prospect occurs on the eastern limb of a north-northwest-striking antiform (Glencoe Anticline). The mineralisation occurs within a lithological sequence that is typical of Iberian type VAMS mineral systems. Interpretation of drill core indicates that the Belara lode consists of massive and stringer to disseminated pyrrhotite-chalcopyrite mineralisation with an upper zone that is enriched in galena and sphalerite. The lode is conformable with the strong regional cleavage; however, it is noted that this cleavage is parallel to the sedimentary bedding.
Belararox also has a 100% interest in the 49km-square Bullabulling Project located in the proven gold-producing Bullabulling goldfield near Coolgardie in Western Australia. The Bullabulling Project surrounds the 3Moz Bullabulling Gold Project and is along strike of the Nepean Nickel mine with 3D geology and prospectively mapping already completed and drill targets generated.
Belararox’s management team consists of Neil Warburton as Non-Executive Chair, Arvind Misra as Managing Director, Dr Greg Partington as Chief Technical Officer, and Michelle Stokes and Stephen Lowe as Non-Executive Directors.
Write to Adam Orlando at Mining.com.au
Images: Belararox Ltd & iStock
