Breaker Resources (ASX: BRB) Explorers 2020

THE CONFERENCE CALLER: Breaker Resources kicked off a major reverse circulation (RC) and diamond drilling program last year, designed to grow the one million-ounce Bombora Resource within the company’s Lake Roe gold project, east of Kalgoorlie in Western Australia.

The Lake Roe project is located between two large gold deposits, the 3.5 million-ounce Carosue Dam mine and the 0.9 million-ounce Karonie gold deposit, located 60km north and 40km south of Lake Roe respectively.

The main focus of the drilling is intended for extensions and discovery outside the Resource envelope, both along strike and at depth.

Drilling is expected to continue throughout 2020, using at least three drill rigs.

Diamond drilling at Bombora South is looking to extend the 3.2-kilometre-long gold system to the south with the objective to discover and extend the main mineralised structures (faults) controlling the gold mineralisation observed at Bombora, prior to follow-up resource drilling.

RC and diamond drilling earmarked for Claypan will test a 2.5km by 500m gold anomaly identified by earlier aircore drilling 1.3km southeast of Bombora.

The Claypan anomaly is partially coincident with a newly identified, Bombora Sill-like quartz dolerite and has a geochemical signature comparable with that associated with the Bombora and Crescent primary discoveries.

As with Bombora South, the initial objective is discovery and to pin down the main structures controlling the mineralisation to guide further drilling.

The diamond and RC drill rigs were scheduled to drill up to Christmas and then resume early in the New Year.

Drilling undertaken earlier in the year had led to the discovery of a new steep lode with abundant coarse visible gold approximately 420m below surface in the southern part of the Bombora gold deposit.

Drill hole BBDD0086 encountered a 160m step-out hole that also hit a strong intersection of the high-grade Tura Lode, extending its known strike length to over 800m.

This result was considered important by the company, which interpreted it to further highlight the potential to increase the existing 1.1-million-ounce Resource at depth, and collectively reinforces the emerging underground mining potential at the Lake Roe project.

Breaker reported the Tura Lode intersection in hole BBDD0086 intersected 4.44m of sheared and altered lode with 2 per cent to 20 per cent sulphide, approximately 320m below surface.

“Of the ten wide-spaced, exploratory drill holes that have tested a significant thickness of the favourable quartz dolerite below the current Resource (250m below surface), four have intercepts exceeding 30 gram-metres and a further two intercepts exceed 15 gram-metres,” Breaker Resources executive chairman Tom Sanders said.

“This is an outstanding strike rate for reconnaissance-style drilling, and it says that the long-term underground mining potential is wide open.”

2020 will see a third diamond drill rig targeting the down-plunge extensions of the Tura, Daisy and Mindil lodes below the current Resource where reconnaissance drilling has previously identified high-grade gold mineralisation.

The initial hole in this area will be a deep (~1,200m) diamond drill hole at the southern end of the Bombora deposit and will be conducted as part of a Department of Mines, Industry Regulation and Safety’s Exploration Incentive Scheme (EIS) co-funded drilling program.

“The drilling campaign was designed to accelerate the unlocking of the immense exploration potential at Lake Roe,” Sanders said.

“Our team has done a great job unravelling the geology and believes there is huge scope to grow the one-million-ounce Resource based on a good understanding of the geology after 225,000 metres of drilling and detailed modelling.

“We are now applying this understanding outside the 3.2-kilometre Resource area to the rest of the 8.5 kilometre mineralisation system.

“The targets are a mix of prospects, some of which have already yielded strong reconnaissance intersections but which are poorly understood and inadequately drilled due to the early focus on Bombora (Bombora South, Bombora Deeps, Crescent).

“Other targets have compelling geochemistry with significant aircore drilling intersections that elevate the probability of fresh discovery (Claypan, Claypan North).

“I think this will translate into cost-effective extensional ounces and further discovery but it is now time to let the drill bit do the talking.

“The business case for our strategy is sound and simple.

“Our discovery cost at Bombora is approximately $18 per ounce…and the market is valuing resource ounces like ours at around $65 per ounce, rising to over $250 per ounce in many cases as projects develop.

“We believe drilling to expand the resource base is likely to add significant value and expand our development options.”


Directors: Tom Sanders, Mark Edwards, Mike Kitney, Linton Putland