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THE DAILY ROADHOUSE

 

Ramelius Resources Makes Move on Spectrum Metals

THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) and Spectrum Metals (ASX: SPX) have struck a Bid Implementation Agreement (BIA) that will result in Ramelius offering to acquire all of the issued and outstanding ordinary shares in Spectrum that it does not already own.

Red 5 Increases Darlot Reserve and Resource Estimates

THE DRILL SERGEANT: Red 5 Limited (ASX: RED) updated the JORC Code 2012-compliant Ore Reserve and Mineral Resource estimates for the company’s Darlot gold mine in Western Australia.

 

Ramelius Resources Makes Move on Spectrum Metals

THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) and Spectrum Metals (ASX: SPX) have struck a Bid Implementation Agreement (BIA) that will result in Ramelius offering to acquire all of the issued and outstanding ordinary shares in Spectrum that it does not already own.

Spectrum Shareholders will receive one Ramelius share for every ten Spectrum shares held and cash consideration of 1.7 cents per Spectrum share held, valuing Spectrum shares at 15 cents each – a 52 per cent premium to Spectrum’s last closing price of 9.9 cents on 7 February 2020.

On Ramelius’ radar is Spectrum’s 100 per cent-owned Penny West gold project, located approximately 150 kilometres south-east of Ramelius’ Mt Magnet mining and processing operations north-east of Perth in Western Australia.

Spectrum recently announced a maiden Mineral Resource estimate for the Penny West gold project of 799,000 tonnes at 13.8 grams per tonne gold for 355,500 ounces, including 569,000 tonnes at 16.8g/t gold for 306,800 ounces at Penny North.

The two companies consider the proximity of Ramelius’ Mt Magnet processing facility to Spectrum’s Penny West gold project provides potential to realise capital cost savings and operational synergies in developing the Penny West while maintaining exposure to ongoing exploration potential.

“There is clear logic in the combination of Spectrum’s assets with Ramelius’ WA operations,” Ramelius Resources managing director Mark Zeptner said in the company’s announcement to the Australian Securities Exchange.

“After the successful acquisition of the Marda and Tampia Hill gold projects in 2019, Ramelius is focussed on building on its growth strategy to extend mine life and maximise the value of existing infrastructure in its portfolio.

“This compelling offer is the next step in that growth strategy and is expected to provide significant benefits to both Spectrum and Ramelius shareholders.”

The deal appears a good one for shareholders of Spectrum, who will not only remain exposed to all of the upside from exploration and development of Penny West but will benefit from having access to cash flow generating assets at Edna May, Mt Magnet and Vivien, while gaining exposure to the Marda and Tampia Hill projects through being a shareholder of the enlarged combined group.

“The last year has been one of exceptional growth for Spectrum which we are particularly proud of,” Spectrum Metals chairman Alex Hewlett said.

“The Penny West gold system is developing into one of significant value, I am firmly of the view that this transaction with Ramelius will unlock the full value of Penny West for the benefit of all of our shareholders.

“The combination of Penny West with the existing assets of Ramelius will build a gold business capable of delivering exceptional future returns for our shareholders.”

 

Email: ramelius@rameliusresources.com.au

Web: www.rameliusresources.com.au

 

Spectrum Metals Drills High-Grade Extensions at Penny North

THE DRILL SERGEANT: Spectrum Metals (ASX: SPX) continued its run of high-grade results from extensional RC drilling within the high-grade shoot at the company’s Penny North project.

Spectrum Metals received results from four new holes that returned results of:

SPWRC081
4 metres at 63.1 grams per tonne gold from 289m, including 3m at 83.7g/t from 289m;

SPWRC080
2m at 50.5g/t gold from 338m;

SPWRC071
2m at 48.7g/t gold from 264m, including 1m at 95.5g/t gold from 264m;

SPWRC072
2m at 27.1g/t gold from 2315m, including 1m at 44.6g/t gold from 315m.

The company also received results from parts of two holes from Penny South, including:

SPWRC078
2m at 17.1g/t gold from 182m;

SPWRC062
5m at 2.5g/t gold from 234m, including 1m at 5.7g/t from 237m.

The company claimed the result in SPWRC078 of 2m at 17.1g/t gold at Penny South indicates that the main lode continues to the south.

Further assay results at Penny South are pending and additional holes have been planned.

“We are very pleased to see continuing high-grade down plunge gold mineralisation at Penny North,” Spectrum Metals managing director Paul Adams said in the company’s announcement to the Australian Securities Exchange.

“In addition, early drilling at Penny South suggests this location may represent a new target in the short term.

“This is separate to hole SPWRC006 (5m at 28.9g/t from 203), that appears to represent a separate hanging wall position to the main lode.”

 

Email: info@spectrummetals.com.au

Web: www.spectrummetals.com.au

 

Spectrum Metals Hits High-Grade Penny North Extensions

THE DRILL SERGEANT: Spectrum Metals (ASX: SPX) announced the latest results from the high-grade Penny North lode at the company’s 100 per cent-owned Penny West project near Youanmi in Western Australia.

Spectrum Metals said the results, which stem from four new holes, demonstrate the continuity of high-tenor mineralisation within the high-grade Penny North shoot.

The results from the latest four holes included:

SPWRC067
3 metres at 34.4 grams per tonne gold from 264m, including 1m at 99.9g/t gold from 265m;

SPWRC068
9m at 24.1g/t gold from 265m, including 3m at 69.3g/t gold from 267m;

SPWRC069
9m at 15.9g/t gold from 294m, including 6m at 22.5g/t from 295m; and

SPWRC070
2m at 16.6g/t gold from 274m.

Spectrum also reported additional results to complete six holes whose main lode intersections had been previously reported.

Results from the further two holes included:

SPWRC051
4m at 16.8g/t gold from 116m, including 2m at 31.1g/t gold from 116m; and

SPWRC048
4m at 6.1g/t gold from 68m.

Spectrum explained that it had previously considered hole SPWRC070 to lie outside the interpreted high-grade shoot boundary, but its position now lies within the 20to 40gm contour.

It also stated that the intersection encountered by hole SPWRC051 of 2m at 31.1g/t from 116m sits in a hanging wall lode position, 20m up-hole from the structure that hosts the main high-grade mineralisation at Penny North.

The company has drilling continuing at Penny North with further rigs planned to commence mid to late August to expand the project on multiple fronts.

“We are impressed by the width and grade of the latest drill results from Penny North, particularly as these results lie at the edge of the high-grade envelope,” Spectrum Metals managing director Paul Adams said in the company’s announcement to the Australian Securities Exchange.

“We have been able to increase the known strike length at the base of the zone to at least 200 metres and have very high-grade mineralisation in the deepest hole yet drilled at Penny West in hole SPWRC069.”

 

Email: info@spectrummetals.com.au

Website: www.spectrummetals.com.au

 

Spectrum Metals Achieves High-Grade Extensions at Penny North

THE DRILL SERGEANT: Spectrum Metals (ASX: SPX) released further high-grade gold intersections from the company’s Penny North prospect in Western Australia.

Spectrum Metals is currently conducting an extensional Phase II RC drilling program at the Penny North prospect.

The latest results are from 12 recently completed holes with results pending from a further eight holes.

An additional 11 holes have been designed and are yet to be drilled.

So far, SPX has drilled 44 RC holes into the Penny North prospect.

Intersections achieved from the latest batch of assays received include:

SPWRC053
5 metres at 13.3 grams per tonne gold from 202m within 9m at 6.9g/t gold from 200m;

SPWRC054
1m at 24g/t gold from 231m within 7m at 4.9g/t gold from 225m, and 3m at 15g/t gold from 239m;

SPWRC051
1m at 26g/t gold from 149m, within 13m at 3.2g/t gold from 141m;

SPWRC047
1m at 18g/t gold from 111m, within 4m at 4.6g/t gold from 111m; and

SPWRC048
1m at 8.2g/t gold from 134m.

The drilling has now extended the Penny North high-grade mineralisation down dip, south and north taking the gold mineral system at Penny West / Penny North to now measure 650m in strike length extending to a vertical depth of 230m and is open in all directions.

Spectrum indicated it still has a number of infill holes still to drill from its Phase I program under the Penny West pit, and as part of Phase II will follow up an earlier intersection in SPWRC006 of 5m at 28.9g/t gold from 203m, which it said is open in all directions and could represent a new zone of increased lode thickness.

“The Penny North Lode is displaying an apparent southerly high-grade plunge, much like the mineralisation associated with the Penny West lode beneath the open pit,” Spectrum Metals said in its ASX announcement.

“However, mineralisation remains open to the north with additional holes planned with the aim of extending the mineralisation in a northerly direction.”

 

Email: info@spectrummetals.com.au

Website: www.spectrummetals.com.au

 

Spectrum Metals Doubles Penny North Lode Extent

THE DRILL SERGEANT: Spectrum Metals (ASX: SPX) released the first results from a Phase II drilling program recently conducted at the company’s Penny North prospect in Western Australia.

Spectrum Metals has received results from three holes, including:

SPWRC040
7 metres at 17.5 grams per tonne gold from 230m, within 11m at 11.7g/t gold from 229m;

SPWRC039
1m at 180.3g/t gold from 206m, within 3m at 70.8g/t gold from 205m; and

SPWRC036
1m at 12.3g/t gold from 205m, within 3m at 6.3g/t gold from 205m.

The company explained the high-grade results from Holes SPWRC039 and SPWRC040 are located down dip of previously reported hole SPWRC027, adding that holes SPWRC039 and SPWRC040 add approximately 80m of down dip extent to this section line and therefore doubles the down dip extent of the Penny North lode on this section.

Up dip holes SPWRC038 and SPWRC050 on the same section line are still awaiting assay results.

Spectrum has drilled a total of 20 holes in its Phase II program so far that is continuing.

“We are very excited to see the high tenor and high width of gold mineralisation continue in our Phase II program, particularly within hole SPWRC040 which is the deepest hole yet assayed at Penny North,” Spectrum Metals managing director Paul Adams said in the company’s announcement to the Australian Securities Exchange.

“It appears that the Penny North structure again widens at this location and remains open down dip and along strike.”

 

Email: info@spectrummetals.com.au

Website: www.spectrummetals.com.au

 

Spectrum Metals to Run SAM Survey Over Penny West Shear

THE DRILL SERGEANT: Spectrum Metals (ASX: SPX) is preparing a Sub‐Audio Magnetic (SAM) survey to be carried out over the Penny West Shear and surrounds at the company’s Penny West gold project in Western Australia.

Spectrum Metals has engaged Gap Geophysics to complete the SAM survey covering the Penny West Shear from south of the Penny West open pit to the northern lease boundary.

In 2015, a ground magnetic survey conducted over the entire Penny West project area, consisting of Mining Leases M57/180 and M57/196 produced magnetic data showing a clear and distinct low magnetic intensity zone striking north to south, from the Penny West open pit, to the northern lease boundary.

Spectrum Metals explained the proposed SAM survey, consisting of around 85 linear kilometres and covering an area of four-square kilometres, will encompass the entire Penny West Shear Zone in addition to other structures to the east and west.

Besides providing a higher resolution magnetic survey the SAM technique will be used to identify conductive material within the rock and resistive anomalies in conductive terrain.

The results will then be combined with recent auger geochemistry, which Spectrum will use as a layered data approach to help guide its future drilling programs on the tenements and in the gap Zone between Penny North and Columbia‐Magenta.

“Spectrum is eagerly anticipating the commencement of the SAM geophysics survey,” Spectrums Metals managing director Paul Adams said in the company’s announcement to the Australian Securities Exchange.

“We believe that this technique, which has been of significant value to other explorers in the goldfields recently, will greatly enhance our structural understanding at the Penny West project and will be used to target additional potential gold mineralisation along the Penny West Shear.”

 

Email: info@spectrummetals.com.au

Website: www.spectrummetals.com.au

 

Spectrum Metals Encounters High-Grades at Magenta and Penny West

THE DRILL SERGEANT: Spectrum Metals (ASX: SPX) received the final assays for the maiden drilling program undertaken at the company’s 100 per cent-owned Penny West gold project near Youanmi in Western Australia.

Spectrum Metals received results from three holes at the target that included:

SPWRC009
1 metre at 11.5 grams per tonne gold from 86m, within 3m at 5g/t gold from 86m; and

SPWRC010
1m at 7.9g/t gold from 58m.

Results also returned assays from the three remaining holes drilled at Penny North including:

SPWRC032
2m at 12.9g/t gold from 186m and 1m at 11.9g/t gold from 196m; and

SPWRC033
3m at 1.8g/t gold from 171m.

Spectrum Metals said the results open another area of focus at Magenta and also shows that high-grade gold mineralisation exists at either end of a 1.4-kilometre-long ‘gap zone’ that has no RC drilling.

The company claimed the drilling at Magenta confirmed the high-grade structure remains open in all directions and has now extended the strike length of this new zone to over 100 metres.

Results from the remaining RC holes from Penny North extended the high-grade to the north by a further 40m.

Results to the southern end of Penny North demonstrate the structure continues.

Phase II of Spectrum’s RC drilling program will kick off immediately to target areas underneath and south of the Penny West pit, extensions to the Penny North discovery and beneath the high-grade mineralisation at Magenta and Columbia.

“We are very excited to be moving so quickly into our Phase II drilling program at Penny West with so many high-grade targets to follow up on from our Phase I program,” Spectrum Metals managing director Paul Adams said in the company’s announcement to the Australian Securities Exchange.

“In addition, we have the potential of again finding further high-grade mineralisation below previous drilled intercepts at Penny South, Magenta and into the ‘gap zone’.”

 

Email: info@spectrummetals.com.au

Website: www.spectrummetals.com.au

 

Spectrum Metals Continues Penny North Golden Run

THE DRILL SERGEANT: Spectrum Metals (ASX: SPX) received assay results from a further eight holes from recent drilling at the company’s Penny North prospect, located south of the Youanmi mining centre in Western Australia.

The assay results included intercepts of:

SPWRC027
2 metres at 140 grams per tonne gold from 153m, within 6m at 47.4g/t gold from 150m;

SPWRC029
6m at 46.8g/t gold from 121m, within 11m at 25.8 g/t gold from 121m;

SPWRD024
2m at 12g/t gold from 173m;

SPWRC028
1m at 16.2 g/t gold from 172m; and

SPWRC030
1m at 11.4 g/t gold from 175m.

Spectrum Metals said the intersection in hole SPWRC029 was encountered immediately up dip of previously released hole SPWRC002, which recorded an intersection of 8m at 23.3g/t gold within 14m at 14.4g/t gold from 128m.

Spectrum refer to SPWRC002 as the ‘discovery hole’.

“The Penny North prospect continues to deliver exceptional results for Spectrum, remaining open in all directions,” Spectrum Metals managing director Paul Adams said in the company’s announcement to the Australian Securities Exchange.

“We are currently designing and preparing for our Phase II drilling program to expand on our recent discoveries both at the Penny North prospect and under the open pit at Penny West.”

 

Email: info@spectrummetals.com.au

Website: www.spectrummetals.com.au

 

Spectrum Metals Hits New Gold Zone at Penny West

THE DRILL SERGEANT: Spectrum Metals (ASX: SPX) released first assay results from drilling carried out below the open pit at the company’s Penny West deposit, south of the Youanmi mining center in Western Australia.

Spectrum Metals has received assay results from eight holes drilled beneath the open pit that encountered high-grade gold intercepts, including:

SPWRC006
5 metres at 28.9 grams per tonne gold from 203m, including 1m at 103g/t gold from 203m, within 31m at 5.5g/t gold from 203m.

The company explained this intersection was hit in the deepest and southern most hole yet received from the drilling program underneath the Penny West open pit.

Describing it as being “unusually thick” Spectrum believes the intersection may represent a new zone of structural thickening to the south and at depth and has generated a large new target for further drilling.

Encouraged by the results, Spectrum is currently designing a program of RC and diamond holes to follow up the intersection in hole SPWRC006 down dip and to the south in addition to the holes that are still to be drilled under the northern end of the pit.

Further assays are pending for drilling at other targets of Magenta (3 holes), Penny West (3 holes) and Penny North (12 holes).

“This is another incredible intersection for Spectrum and once again clearly demonstrates the capacity of the Penny West gold system to deliver significant gold mineralisation,” Spectrum Metals managing director Paul Adams said in the company’s announcement to the Australian Securities Exchange.

“Hole SPWRC006 is the deepest hole on the southern-most line drilled into the Penny West lode in our program and was designed to discover depth extensions to the known mineralisation.

“This intersection could open up a new exploration front under and south of the Penny West Pit.”

 

Email: info@spectrummetals.com.au

Website: www.spectrummetals.com.au