Brightstar Resources Inks Consolidation Deals with Gateway Mining and Alto Metals

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THE BOURSE WHISPERER: Brightstar Resources (ASX: BTR) has upped the Goldfields consolidation stakes with the inking of deals with two emerging gold exploration plays.

The first is a Binding Agreement signed with Gateway Mining (ASX: GML), under which Brightstar will purchase Gateway’s gold rights within the eastern tenement block of that company’s Montague project.

The deal is profitable to Gateway, which will receive consideration of $14 million, comprising $5 million in cash, $7 million in Brightstar Shares and $2 million in deferred Brightstar Shares (subject to milestones).

Gateway will retain ownership of all other mineral rights (including base metals) within the Montague East Tenement Group, allowing it to continue its base metal exploration on these tenements in line with its recent exploration focus.

Copper-nickel-PGE prospects at Montague East, including the recently targeted Flametree prospect where drilling encountered:

GRC1014
1 metre at 0.72 per cent copper, 0.41 per cent nickel, 1 gram per tonne platinum + palladium (Pt+Pd) from 195m and 1m at 1 per cent copper, 0.39 per cent nickel, 1.2g/t Pt+Pd from 209m (EOH); and

GRC283
4m at 1.03 per cent copper, 0.44 per cent nickel, 0.9g/t Pt+Pd from 137m.

“The deal is structured in a way that delivers immediate cash into our balance sheet while at the same time giving Gateway a seat at the table of an exciting potential emerging consolidation play in the Sandstone region through a significant shareholding in Brightstar,” Gateway Mining managing director Mark Cossom said in the company’s ASX announcement.

“Alex Rovira and his team at Brightstar are working hard to build a significant new gold production company with an exciting growth future, and we are pleased to have been able to participate in what we believe amounts to sensible rationalisation in the belt.”

The ink was barely dry, and Brightstar Resources didn’t get to put the lid back on its biro, with Alto Metals (ASX: AME) tabling papers for a Scheme Implementation Deed (SID) under which Alto agrees to propose a Scheme of Arrangement (Scheme) for acquisition by Brightstar of 100 per cent of Alto.

Under the Scheme, Alto shareholders will receive four (4) Brightstar shares for each Alto share held on the Record Date (Scheme Consideration) giving an implied value of approximately six cents per Alto share, representing a healthy premium of:

– Approx. 82 per cent to the closing Alto share price of 3.3 cents per share on 30 July 2024; and
– Approx. 81 per cent to Alto’s 30-day VWAP of 3.3 cents per share up to and including 30 July 2024.

“The Scheme announced today is a key step towards building a significant gold business and provides Alto shareholders with an exciting opportunity to become part of an emerging gold producer,” Alto Metals managing director Matthew Bowles said in the company’s ASX announcement.

“In addition to delivering a significant premium, the Scheme, if approved and implemented, will allow Alto shareholders to retain ongoing exposure to the development of the Sandstone gold project, as part of a larger resources group holding multiple projects, which will reduce the risks associated with holding a single project.

“We believe this transaction is a great outcome for Alto shareholders and stakeholders, who will benefit from the development of the Sandstone gold project as part of an enlarged gold company with an exciting future.”

Brightstar is confident the implementation of the Alto Scheme and completion of the Gateway Montague Acquisition, the company will emerge as a junior West Australian gold explorer, developer and producer of note with a material exploration and development platform.

The upshot from the Scheme and Montague Acquisition will consolidate highly prospective exploration ground in the Sandstone region, complementing Brightstar’s existing production, development and exploration asset portfolio.

“This is a compelling transaction for all stakeholders, as the sensible consolidation of the Sandstone and Montague East Gold Projects delivers an asset base with the critical mass to be advanced towards meaningful production,” Brightstar Resources managing director Alex Rovira said.

“The Sandstone Hub has the mineral endowment and exploration upside to be a significant development opportunity in Western Australia in the coming years and presents as an asset with potential to support Brightstar’s aggressive growth ambitions to become a multi asset mid-tier WA gold producer.

“Brightstar has the team and experience to fast-track the exploration and development of the Sandstone assets in parallel with the development of the Menzies and Laverton Gold Projects, to underpin Brightstar’s ambitions of becoming a multi-asset producer in WA.”

 

TO READ THE FULL GATEWAY MINING ANNOUNCEMENT: CLICK HERE

TO READ THE FULL ALTO METALS ANNOUNCEMENT: CLICK HERE

 

Global Lithium Resources Drills Manna Lithium Deposit Extension

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THE DRILL SERGEANT: Global Lithium Resources (ASX: GL1) timed the release of new drilling results nicely with the annual Diggers and Dealers Conference a weekend away.

Global Lithium Resources announced results from recently completed exploration drilling undertaken at the company’s 100 per cent-owned Manna lithium project on the outskirts of Kalgoorlie in Western Australia.

The assay results came from some 6,261 metres of RC drilling, which the company declared to confirm an undercover Southwest extension to the Manna lithium deposit over a 600m strike length.

Drill results within this extension include:

MRC0468
13 metres at 0.96 per cent lithium oxide (Li2O) from 187m;

MRC0481
8m at 0.81 per cent Li2O from 86m; and

MRC0467
7m at 1.03 per cent Li2O from 78m.

Global Lithium acknowledged the grades achieved were lower compared to earlier results from the Manna Central area, but explained the CY24 drilling has highlighted potential to build on the current Mineral Resource Estimate (MRE) of 51.6 million tonnes at 1 per cent Li2O at Manna and delineate further open pit mineable mineral inventory.

“The 2024 exploration drill program at Manna has confirmed a new zone of spodumene hosting pegmatites and increased the team’s geological understanding of the project area,” Global Lithium Resources general manager – geology Logan Barber said in the company’s ASX announcement.

“The extension expands the footprint of the mineralised pegmatites at Manna and highlights the discovery upside that still exists following more than 100,000m of drilling completed to date.

“The results of this program have added further momentum for GL1’s exploration team following the recent increase of the Manna MRE.

“We look forward to further analysing the results and providing an update on planning regarding our next drill program at Manna.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Helix Resources Extends Collerina Copper Zone Prospectivity

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THE DRILL SERGEANT: Helix Resources (ASX: HLX) reported on geochemical sampling it recently conducted in search of new copper-gold deposits in the company’s Eastern Group Tenements located near Nyngan in central New South Wales.

Helix Resources’ efforts produced more than 600 auger sample assays from the Eastern Group Tenements, which its claims to have confirmed the Collerina Copper Trend as a major prospective zone with elemental signatures indicative of copper-gold deposits in similar style to nearby Aeris Resources’ Tritton copper deposit.

The company declared the geochemical infill results confirm the tenor and scale of pathfinder element anomalies identified at several targets:

o Numerous +20ppb gold (Au) assays have been returned, with peak values of 187ppb Au, 39ppb Au and 44ppb Au at Max’s Folly, Alderbaran and Gwinear respectively, with the sample grid infilled to 50m x 50m at Max’s Folly and Alderbaran, and to 100m x 50m at Gwinear.

o Several Au anomalies have been defined at Tarawera and Iowaba, with numerous +20ppb Au assays, with peak values of 37ppb Au and 59ppb Au respectively, with the sample grid infilled to 50m x 50m in multiple areas.

“The auger infill programs continue to confirm there are significant geochemical anomalies along the prospective corridor we refer to as the Collerina Copper Trend, which extends south from the Aeris Resources copper tenements through Helix’s Eastern Group Tenements for over 100km of strike length,” Helix Resources managing director Kylie Prendergast said in the company’s ASX announcement.

“The results demonstrate this is a major prospective zone and the signatures we are observing in the data are consistent with signatures for Tritton-style copper gold deposits.

“Helix is working proactively around crop and weather constraints to progress programs in all accessible areas, bringing targets to a drill ready stage as efficiently as possible.

“There are also several large areas along the prospective trend which are proposed for aircore drilling as they are essentially unexplored, given airborne VTEM geophysics may not have tested through the alluvial clays.

“Helix is focused on advancing several priority targets in its pipeline which we believe have potential to deliver a new copper-gold discovery in the highly endowed, Cobar region close to established operations and processing facilities.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Lincoln Minerals Implementing Staged Development Strategy for Kookaburra Graphite Project

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THE DRILL SERGEANT: Lincoln Minerals (ASX: LML) will have a lot to cram in its five minute pitch at the Roadhouse Steak Sandwich Showdown in Kalgoorlie next week.

Lincoln Minerals updated the market on progress of a Pre-Feasibility Study (PFS) underway for the company’s Kookaburra graphite project (KGP) in South Australia.

Lincoln is eyeing a staged development strategy at KGP where it aspires to deliver the first producing graphite mine for Australia for some time by leveraging the project’s unique attributes.

The company’s ambitions are based on:
• High grade core at surface: Potential to deliver low operating costs/high margins.
• Existing Mining License: Accelerates timeframe to first ore.
• Existing infrastructure: Power 5km’s, Water 12km’s and Road 0.1Km’s. Minimises capital and approvals timeframes.
• Proximity to major regional centre: 25 minutes from Port Lincoln.

Lincoln believes, based on publicly available information, that KGP has potential to deliver low start-up capital and operating costs and is likely to generate positive operating margins and an acceptable rate of return, even in a low graphite price environment.

“Lincoln’s Kookaburra Graphite Project is unique in Australia, in that it benefits from extremely high-grade graphite at surface, requiring no pre-strip, thanks to an orebody which literally sticks out of the ground,” Lincoln Minerals CEO Jonathon Trewartha said in the company’s ASX announcement.

“As an experienced mining project developer, it is clear to me that with a Mining Lease already approved and developing such high grades at the front end of the production schedule, means that Lincoln is likely to be able to generate attractive returns, even at low graphite prices.

“Our strategy to stage the development and initially to focus on the high grade at KGP will also allow us to progress to first ore potentially quicker than any other Australian project in Australia and enable Lincoln to deliver production-scale graphite concentrate for qualification in the EV markets while we plan the development of a larger project to feed the global demand for high quality anode material.

“We look forward to the results of our PFS to support our plans for KGP to be first to market in Australia, which would make it the preeminent graphite project, and we expect the outcome to attract significant interest in the project.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Prodigy Gold Reports Updated Hyperion Gold Deposit MRE

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THE DRILL SERGEANT: Prodigy Gold (ASX: PRX) released an updated Mineral Resource Estimate (MRE) for its 100 per cent-owned Hyperion gold deposit within the company’s Tanami North project in the Northern Territory.

Prodigy Gold reported a total MRE of 8.64 million tonnes at 1.5 grams per tonne gold for 407,000 ounces at a cut-off grade of 0.6g/t gold.

The company said the update represents an increase in ounces from the previously reported Hyperion MRE of 4.4 million tonnes at 2.2g/t gold for 314,000 ounces that was reported at a lower cut-off of 0.7g/t gold.

Prodigy explained the Tanami North project area is emerging as a strategically important project for the company and is to be the main focus of its exploration activities during the 2024 field season with drilling planned for both the Hyperion and Tregony deposits.

This will include drilling at Hyperion that is designed to provide additional sample material from different mineralised structures for further metallurgical testwork.

“The Hyperion deposit is one of Prodigy Gold’s most strategically important projects,” Prodigy Gold managing director Mark Edwards said in the company’s ASX announcement.

“It was a focus of exploration activities in 2023 with 19 holes drilled around the Hyperion exploration lease with 14 of these holes, for 1,674 metres, drilled into the Hyperion Mineral Resource itself.

“The work completed highlights that the Hyperion deposit is now reaching a size that warrants consideration for future development.

“While this Mineral Resource update has yielded more tonnes at lower grade, this update represents a better understanding of the deposit.

“The wireframing has been completed including lower grade material, with this update using a lower cut-off level of 0.3g/t gold compared to the lower cut-off level of 0.5g/t gold used in the 2018 model.

“This means the underlying higher-grade material of the updated Resource…is still present at a cut-off grade of 1.1g/t gold.

“This compares well with the tonnes and grade previously reported in 2018.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

PVW Resources to Acquire High Potential REE Projects in Brazil

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THE BOURSE WHISPERER: PVW Resources (ASX: PVW) has entered into a binding agreement to acquire a major portfolio of highly prospective ionic clay Rare Earth Element (REE) projects in Brazil.

PVW Resources signed the agreement to acquire Brazil-registered Scanty Mineracao Ltda, aka Scanty, the holder of what the company considers being a strategically important and highly prospective portfolio of REE projects across four different areas in Brazil.

The company was assisted in the identification and selection of the portfolio of 11 projects by independent Brazilian geological consultants.

PVW believes the package presents the opportunity for new ionic clay REE discoveries in underexplored areas.

“The PVW Board see these projects as an exceptional opportunity to grow our presence in the rapidly evolving critical minerals landscape globally,” PVW Resources non-executive chairman George Bauk said in the company’s ASX announcement.

“The acquisition of strategically located rare earth element projects in Brazil allows us to gain a foothold in a highly prospective and stable region which has recently established itself at the forefront of the rare earth industry globally.

“We are delighted in the appointment of Mr Luis Azevedo as a Non-Executive Director, a major shareholder of Scanty following the completion of the transaction.

“Mr Azevedo is an experienced Brazilian mining and legal professional who began his career with WMC Resources, a company I also worked for over a decade.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

The Resources Roadhouse Returns to Kalgoorlie for the Steak Sandwich Showdown

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THE CONFERENCE CALLER: The Resources Roadhouse is returning to Kalgoorlie to mount a new production of its annual Steak Sandwich Showdown.

The Roadhouse has put together a solid program of junior companies that are chomping at the bit to present to our loyal audience.

Terrain Minerals (ASX: TMX)

Terrain Minerals has developed a taste for gallium, not the Sméagol of Lord of the Rings fame, but a relatively unknown though much sought after soft, silvery metal that lends itself to use in optics, electronics, and nuclear engineering due to its non-toxicity and resistance to neutron radiation and beta decay.

Gallium also provides a critical component in multiple steps of the manufacturing process for computer chips and other electronic devices including photovoltaics.

At the company’s 100 per cent-owned Larin’s Lane project in Western Australia, recent drilling encountered intersections of gallium up to 64m wide and with multiple higher-grade zones across a strike of six kilometres that remains open.

Terrain has indicated it intends to continue to advance the gallium potential at Larin’s Lane while undertaking parallel REE exploration at its Lort River projects.

Lincoln Minerals (ASX: LML)

Lincoln Minerals shines its spotlight on development of the company’s Kookaburra graphite project in South Australia.

The company claims Kookaburra to b the second largest known graphite resource on South Australia’s Eyre Peninsula and considers it to have potential to contribute graphite products to the growing demand for batteries and battery storage facilities.

Kookaburra hosts Measured, Indicated and Inferred Resources of 12.8 million tonnes at 7.6 per cent total graphitic carbon (TGC).

An independent review of previous metallurgical test work confirmed graphite from Kookaburra to be ideal for use as a feedstock for high quality battery anode material to serve the fast-growing global EV markets.

Lincoln read the study results to confirm existing data being sufficient to commence a Pre-Feasibility Study for the project targeting production of graphite concentrate.

Westar Resources (ASX: WSR)

Westar Resources’ mantra is straight forward: a mineral exploration company focused on discovery of high-quality gold and critical metals deposits.

The company’s portfolio is spread far and wide throughout Western Australia with a recently acquired graphite project in South Australia added to the mix.

The company’s stated exploration strategy is to explore projects systematically and intelligently using innovation, technology, and best-practice with a clear focus on optimising opportunities for success and generating material discoveries.

Warriedar Resources (ASX: WA8)

Warriedar Resources is making progress with reverse circulation (RC) and diamond drilling activities at the company’s Golden Range project in the Murchison region of Western Australia.

Warriedar Resources’ diamond drilling is the first undertaken at the 2.3km-long Ricciardo deposit, and the nearby M1 deposit, by any operator in ten years.

Recent drilling at M1 produced results better than what the company expected raising the company’s expectations for the deposit, which is in the gun for further drilling in H2 2024.

Warriedar’s war chest received a boost with the company signing a binding agreement for the sale of its residual Golden Range camp assets to Fenix Resources for cash consideration of $2 million.

Red Metals (ASX: RDM)

All the noise emanating from Red Metal in recent times has centred around the company’s Sybella rare earth project near Mt Isa.

Red Metal recently announced results of a proof-of-concept impurity removal trial on the Sybella rare earth ore that resulted in precipitation of a potentially saleable mixed rare earth carbonate (MREC) product.

Tests revealed 48.7 per cent of the MREC product is comprised of total rare earth oxides (TREO).

The point of difference for the Sybella ore is the magnet rare earth oxide (MREO) proportion of the TRE0 at 39.5 per cent.

This high proportion holds some significance because MREOs represent 92.5 per cent of the value of TREO elements in the product.

Drilling, metallurgical and comminution studies to date have raised Red Metal’s confidence that a low-cost, low-capital, heap leach processing option may prove feasible.

Mt Malcolm Mines (ASX: M2M)

Mt Malcolm Mines recently conducted a program of grade control reverse circulation (RC) drilling leading to the commencement of bulk sampling as well as an ore processing study at the company’s Golden Crown prospect in Western Australia.

The company received a boost in confidence form the grade control drilling results for bulk sampling and the overall mineralisation at Golden Crown.

Besides confirming high-grade mineralisation within the sampling area, the drilling campaign also provided valuable insights into grade distribution delivering results mt Malcolm considers crucial for delineating the bulk sampling grade and assisting in planning for future drilling.

Cazaly Resources (ASX: CAZ)

Cazaly Resources holds a diverse portfolio of projects spread across the globe in Australia, Namibia, and Canada.

Most news of late has come from its Canadian division where it has the Sundown lithium project sitting in a sought-after neighbourhood of the world-class James Bay lithium province.

Its other Canadian foray is the Carb Lake rare earth element (REE) project in the Red Lake District of Ontario, Canada, another well-known mining province.

Cazaly has received government approval, which included consultation with First Nations, for a proposed drill program to test niobium and REE mineralisation at the large-scale Carb Lake carbonatite complex.

Burley Minerals (ASX: BUR)

Burley Minerals has a portfolio of Western Australia iron projects.

The first of these is the 100 per cent-owned Broad Flat Well CID (Channel Iron Deposit) project.

The company is working with the Yindjibarndi Aboriginal Corporation to complete heritage surveys at Broad Flat Well as well as the Yindjibarndi Nation’s majority owned construction contractor, Yurra Pty Ltd, to facilitate earthworks for the heritage surveys and ensuing drilling program anticipated to be carried out in Q3 2024.

Elsewhere the company has the Cane Bore CID project near Onslow and the Yerecoin iron project not far to the north of Perth that hosts a JORC 2012-compliant Inferred and Indicated Mineral Resource of 246.7 million tonnes capable of producing a concentrate at greater than 68 per cent iron.

Burley Minerals also has lithium projects in Canada.

Astral Resources Completed Rogan Josh In-Fill Drilling Ahead of MRE

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THE DRILL SERGEANT: Astral Resources (ASX: AAR) reported final assay results from drilling undertaken at the company’s 100 per cent-owned Feysville gold project outside Kalgoorlie in Western Australia.

Astral Resources received assays from the remaining 16 holes of a 32-hole RC drilling program completed at the Rogan Josh prospect.

Results from the Rogan Josh in-fill program include:

FRC325
8 metres at 1.35g/t Au from 55 metres;

FRC287
8m at 1.28g/t Au from 43 metres; and

FRC326
5m at 1.79g/t Au from 32 metres.

The Feysville project hosts a Mineral Resource Estimate of 3 million tonnes at 1.3 grams per tonne gold for 116,000 ounces of contained gold at the Think Big deposit.

Astral believes this to be a sound foundation to potentially become a source of satellite ore feed to a future operation based on the company’s flagship Mandilla gold project approximately 50km to the south.

“Recent exploration activity at Feysville demonstrated the potential of the project to provide multiple gold deposits capable of producing satellite feed for the 2.5 million tonnes per annum Mandilla process plant contemplated in the September 2023 Scoping Study,” Astral Resources managing director Marc Ducler said in the company’s ASX announcement.

“The recently completed drill programs will provide critical data into Mineral Resource Estimates for the Feysville project, being Think Big, Rogan Josh and Kamperman.

“The previously reported Think Big MRE of 116,000 ounces was unconstrained (not reported within an optimised pit shell), so it is expected a small decrease will be incurred when applying open pit constraints as is best practice.

“On the upside, we are very confident that inaugural contributions from Kamperman and Rogan Josh will see a material increase in the aggregate Mineral Resources at Feysville following the positive exploration results reported, primarily at Kamperman, over the last 18 months or so.”

Astral indicated it has plans underway for a RC in-fill program at the Theia deposit within the Mandilla gold project it anticipates will support an MRE update for Mandilla ahead of detailed mine design for the Mandilla Pre-Feasibility Study.

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Argent Minerals Upgrade Kempfield Deposit Silver MRE

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THE DRILL SERGEANT: Argent Minerals (ASX: ARD) reported an upgraded Mineral Resource Estimate (MRE) for the Kempfield silver deposit within the company’s 100 per cent-owned Kempfield silver-gold-lead-zinc project in New South Wales.

The Kempfield silver deposit MRE now stands at 63.7 million tonnes at 69.75 grams per tonne silver equivalent (AgEq) for 142.8 million ounces of silver, with a 54 per cent increase in silver metal content to 65.8 million ounces silver from the previous 2023 MRE.

Argent Minerals claims the updated MRE positions the Kempfield silver deposit as the second largest undeveloped silver deposit in Australia.

“The upgraded 2012 JORC compliant Resource over the Kempfield silver polymetallic deposit has delivered a significant 54 per cent increase of silver content compared to the previous resource, a major milestone for Argent,” Argent Minerals managing director Pedro Kastellorizos said in the company’s ASX announcement.

“The significance of the Mineral Resource Estimate, both in size and the associated value of the metal content within the resource area is substantial.

“The company believes the discovery of further mineralisation within the project area will further enhance the overall value of the future operations.

“Furthermore, our technical team believe the Kempfield deposit has substantial potential for additional resource growth along strike, down hole plunge and depth.

“Argent will be planning the next phase of drilling within the Kempfield NW, Sugarloaf Hill, Henry’s and Golden Wattle Zone Area with a view of increasing the tonnage and grade of the current resource estimation.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Hammer Metals Delivers Maiden Mineral Resource Estimate for Orelia North Gold Deposit

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THE DRILL SERGEANT: Hammer Metals (ASX: HMX) delivered the initial Mineral Resource Estimate (MRE) for the Orelia North gold deposit, part of the company’s Yandal gold project in Western Australia.

The Orelia North deposit is located to the northeast of Leinster in the Yandal Greenstone Belt in WA in a good neighbourhood sitting approximately 9.5 kilometres to the north of the Orelia gold operation operated by Northern Star Resources (ASX: NST) and around 12.5km northwest of that company’s Bronzewing gold operations.

Hammer Metals released a JORC Code-compliant Inferred MRE for Orelia North of 1.48 million tonnes at 1.15 grams per tonne gold for 54,500 ounces of contained gold (0.5g/t Au cut-off).

The deposit extends from surface and remains open at depth, which the company consider displaying potential for Resource extensions.

“We’re pleased to report the initial Mineral Resource Estimate of over 54,000 ounces of contained gold for the Orelia North deposit, providing a solid foundation for Hammer’s ongoing exploration within the Yandal Greenstone Belt,” Hammer Metals managing director Daniel Thomas said in the company’s ASX announcement.

“Orelia North was discovered by Hammer in 2020 as part of a reconnaissance aircore drilling program.

“The discovery highlights the potential of Hammer’s exploration ground in the Yandal region where shallow first pass exploration conducted in the late 1970s and 1980s has been shown, in some instances, to not have detected near surface gold mineralisation.

“The Yandal gold region has long been a significant contributor to Australia’s gold production, with numerous significant gold systems including Bronzewing (2.3Moz), Jundee (>10Moz) and Thunderbox (>8Moz).

“With the Orelia North deposit located less than 10 kilometres north of Northern Star’s operating gold mine at Orelia, the project is ideally situated for future development.

“Additional exploration potential will now be considered with a view to increasing the project’s contained gold inventory.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE