ASX Resources Quarterlies: Savannah reinvents itself as a fresh Aussie gold producer
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It’s quarterlies season again as the ASX market announcements page becomes increasingly flooded with earnings lodgements.
To save you the trouble of trudging through it all, we’ve wrapped up the highlights from some of the reports that caught our eye.
Formerly Laneway Resources (ASX:LNY), the company made the leap from explorer to producer this quarter, kicking off mining at the Agate Creek Gold project in QLD in June and reporting the first gold pour at the recently acquired Georgetown Gold Processing Plant.
Ore processed for the quarter totalled 4,693 tonnes at 7.41g/t with recoveries of 96% and total gold refined was 585.7 ounces.
Just 100km by road from the Agate Creek gold project, Georgetown will cut by up to 700km the distance the Agate Creek ore has previously been transported for processing – saving Savannah an estimated $80-100/tonne of ore.
Notably, the company also maintains a 60% interest in the Ashford Coking coal project, where it is working towards grant of Mining Lease and planning for development including scoping studies.
The company was busy exploring its portfolio in South Australia’s Gawler Craton during the September quarter – which is pretty much the world’s premier address for iron oxide-copper-gold (IOCG) deposits.
Drilling at the Horse Well deposit intersected the same host granite in one hole as that found at BHP’s (ASX:BHP) large Oak Dam (5km away) and the nearby OZ Minerals (ASX:OZL) $1 billion Carrapatenna IOCG deposits.
The company says that initial interpretation suggests a possible major fault, with the prospective area lying to the north of the fault, and expects further understanding gained from drilling will help refine the exploration model for Horse Well as the company searches for more evidence of IOCG-style mineralisation.
Cohiba also flagged ‘significant’ zinc results from two holes drilled at the nearby Pernatty C, funded by SA’s Department for Energy and Mining’s Accelerated Discovery Initiative (ADI) program.
The focus now is on Pernatty C’s shallower Zambian Copper Belt (ZCB) style mineralisation in an area considered prospective for stratabound copper-cobalt-silver mineralisation consistent with the historic Mt Gunson mining area directly to the West.
The company finished the quarter with a cash balance of $2.2m.
During the quarter, the company executed a binding subscription and joint venture agreement for the $103 million (US$65 million) strategic funding deal secured with Appian, a global specialist mining private equity fund with expertise in financing and development of mining projects, for the Gorno Zinc project in Italy.
The first tranche US$10 million budget was agreed with Appian to deliver the drilling program, Definitive Feasibility Study (DFS) and all of Gorno’s permitting approvals.
Exploration-wise, AZI kicked off a ~20,000m step out and infill diamond drilling program, and is continuing metallurgical optimisation and variability testing.
At the Punta Corna cobalt project (also in Italy), the expanded exploration licence and drilling program is pending from the regional government, following a positive Environmental & Social Impact Assessment from the Ministry of the Environment.
AZI was also granted an Exploration Licence for lithium in brine at the Campagnano project and is awaiting the official EL for the Ferento project.
Cash as of 30 September 2022 was $3.250 million
During the quarter, Koba staked mining claims covering ~145km2 at its Whilock lithium project, immediately along strike from the Tanco Mine, which is Canada’s only operating lithium mine with reserves of 7.3Mt at 2.76% Li2O.
The company also mapped extensive pegmatites at Whilock, and is confident of the potential to discover high grade lithium at the project.
At the Blackpine cobalt-copper project in Idaho, USA, IP surveying delineated multiple strong, undrilled chargeability anomalies over 4km of strike which are coincident with strong cobalt-copper soil anomalism – and so are high-priority drill targets.
Koba also undertook the first drill program in 25 years at Blackpine to target historical mineralisation and the new IP anomalies. Assays are pending.
At 30 September 2022, cash at bank totalled ~$2.5m.
A solid milestone for the battery and critical metals explorer and developer during the September quarter was the introduction of Thailand’s ‘Policy on Mining and Downstream Industry’ focusing on investment promotion in the exploration, mining and the downstream minerals processing industries, setting the foundations for minerals supply chain security.
And PAM says it was very well received by Thailand’s Office of the Board of Investment when introducing its projects and objective to deliver an initial 10,000tpa Lithium Carbonate Equivalent (LCE) into the country’s rapidly growing battery and electric vehicle supply chain.
The company was also granted EL 19/2565, which will facilitate additional drilling along strike to the south of the main mineralised zone at the Reung Kiet prospect.
Plus, PAM generated an exploration target for the Bang I Tum Lithium Prospect 8km northeast of Reung Kiet.
The company says high-grade results from rock-chip and soil sampling and associated geological mapping “substantially increase the exploration potential at the Bang I Tum Lithium Prospect”.
Cash Balance as at 30 September 2022 was A$3.4 million.
At Stockhead we tell it like it is. While Cohiba, Altamin and Pan Asia Metals are Stockhead advertisers, they did not sponsor this article.