THE BOURSE WHISPERER: Breakaway Resources (ASX:BRW) has reported a maiden JORC Code-compliant Mineral Resource estimate for the company’s Sandy Creek copper-gold project, located south-east of Cloncurry in North Queensland.
The maiden Inferred Resource comprises:
– 2.06 million tonnes at 1.42 per cent copper and 0.33 grams per tonne gold containing 29,400 tonnes of copper metal and 21,900 ounces of gold.
Most of the resource (1.6Mt at 1.46 per cent copper and 0.35g/t gold) is contained within the Sandy Creek Main Zone, with the balance lying within the newly discovered Western Zone.
The Main Zone extends over a strike length of 700 metres and to a vertical depth of 200 metres, with the resource remaining open both to the north and down-plunge to the south.
Sandy Creek project long section showing the Main Zone resource. Source: Company announcement
The company has identified the down-plunge extensions to the south as its focus for the next phase of drilling due to the stronger widths and grades of mineralisation achieved from drilling in this area indicating the potential for plunging high-grade shoots typical of the mineralisation at the Eloise copper mine, which is located east of Sandy Creek.
The maiden JORC resource estimate has provided the impetus for Breakaway to plan further diamond drilling to test the down-plunge extensional potential at Sandy Creek followed by metallurgical test work on the core.
The company said the estimation of a maiden resource at Sandy Creek combined with the recently-announced Joint Venture with Sandfire Resources (ASX:SFR) has further highlighted the regional potential of the broader Eloise project.
“We are very pleased to have delivered a maiden resource for Sandy Creek which is an important milestone in our exploration of the Eloise project,” Breakaway Resources managing director Victor Rajasooriar said in the company’s announcement to the Australian Securities Exchange.
“More importantly, it gives us a clear pathway moving forward in terms of the development of the company.
“While the initial Sandy Creek resource is modest, it is shallow and potentially economic through a small open pit development.
“This potential will be assessed through a Scoping Study on completion of the next phase of drilling.”
Breakaway considers the potential for down-plunge extensions of the mineralisation, which it intends testing with its next drilling campaign, forms part of a much bigger picture at Sandy Creek.
The company said this drilling should provide a much clearer indication of the sort of project Sandy Creek is, and how it can best add value to it.
“At the same time, technical reviews and data interpretation will be commencing on the Broader Altia project under our recently announced $8 million farm-in joint venture with Sandfire Resources,” Rajasooriar continued.
“We are looking forward to commencing that work in conjunction with Sandfire and moving to the next stage in terms of unlocking the value of the Eloise exploration project.”