Recent drilling results from Great Boulder Resources and Magmatic Resources have thrust two small-cap miners into the Australian resources sector spotlight, with notable extensions of mineralised zones and identification of new targets.
Peak Hill yields high-grade gold results
Notably, Golden Treasure returned 8m at 39.9g/t gold from a depth of 58m and 4m at 39.3g/t gold from 30m, while Durack and Enigma yielded 11m at 6.36g/t gold from surface and 7m at 6.34g/t gold from 36m, respectively.
The Golden Treasure results are particularly significant, as they demonstrate continuity of mineralisation between Jubilee and Golden Treasure, allowing for the potential modelling of a single, larger resource. This, in turn, suggests potential for substantial growth of the existing 481,000oz gold resource. Furthermore, Peak Hill benefits from a straightforward, low-capital pathway to production and cash flow, thanks to an ore purchase agreement with Westgold, its largest shareholder.
Magmatic Resources confirms strike continuity at Otto 2
Magmatic Resources’ drilling at the Otto 2 prospect has confirmed strike continuity, with results including 5m at 7.78g/t gold from 184m and 2m at 4.04g/t gold from 144m. Gold mineralisation has been found to be contiguous over 320m of north-south strike. The Induced Polarisation anomaly has a strike length of about 800m, which is indicative of its greater strike potential. Should gold mineralisation be determined to have a relationship to the coincident gravity high, the potential strike length of gold mineralisation could be even greater.
Magmatic Resources will now carry out wireline logging to collect structural information, revise the geology model, and undertake follow-up drilling to test plunge and strike continuity of mineralisation discovered to date.
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Native Mineral Resources forms strategic partnership in Queensland
Native Mineral Resources has entered into a joint venture agreement with Citigold Corporation, securing rights to production from the Central, Warrior, and Stockholm areas, as well as surrounding exploration ground, at the Charters Towers gold project in Queensland. The agreement encompasses 17 mining leases in the Central area, six in Warrior, and seven in the Stockholm area, along with a mining lease application, four mineral development licences, and five exploration permits.
The joint venture tenements collectively host the majority of Citigold’s reported resource, comprising 3.1Mt at 7.6g/t gold for 764,000oz of contained gold in the indicated category, and an inferred resource of 26.5Mt at 13.5g/t gold, or 11.5Moz of contained gold. Native Mineral Resources has exclusive rights to undertake exploration and proving-up drilling, as well as the right to proceed with mining, with material to be processed through its Blackjack processing plant.
Native Mineral Resources will recover eligible expenditure, including drilling, development, mining, processing, and directly attributable financing costs, from gross smelt proceeds. Any remaining surplus will be shared equally between the company and Citigold. Additionally, Native Mineral Resources will pay Citigold a one-off Production Payment of $5m once 8000oz of gold have been produced from the joint venture tenements.
Andean Silver targets production restart studies
Andean Silver’s drilling at the Cerro Bayo silver-gold project in Chile is uncovering multiple high-grade shoots, supporting the company’s plan to grow and upgrade resources. Recent drilling results include 1.7m at 1269g/t silver equivalent (AgEq), 3.3m at 628g/t AgEq, and 1.6m at 1102g/t AgEq. The latest assays include results from maiden drilling at the Temer 4 prospect, where the mineralised vein has now been defined over 350m of strike and 100m depth, and at Dagny, where the holes extend the main shoot at depth below existing development. Drilling at Dagny also intersected new hangingwall lodes outside existing resources.
Past intercepts include 8m at 0.42g/t 3E from 24m, including 2m at 0.88g/t 3E, and 17m at 0.36g/t 3E from 84m.
