ASX Resources Quarterlies: This gold player says it’s on track to become a ‘significant Aussie producer’
Its 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.
Mining activities continued at the company’s two operating mines, Comstock and Shamrock, during the quarter, with the first material being delivered from the Mt Freda Run of Mine pad plant for crushing and processing.
Gold processing also began after the refurbishment of the GAM plant – however just prior to Christmas, a problem was encountered within the crushing circuit.
Despite this, Tombola says it’s on track to become a “significant Australian gold producer”.
“Arrangements are in place for a new crusher to be mobilised to site to recommence crushing, which will enable the GAM plant to recommence operations,” chairman and CEO Byron Miles said.
“Importantly, the project fundamentals remain unchanged.”
The company also advanced to 100% ownership of the Golden Mile – increasing its planned future revenue share of Golden Mile materials.
Tombola entered an agreement with Ilwella during the quarter for the pre-sale of the first 200 ounces of gold to be produced with $500,000 received.
And further significant gold intercepts have been delivered at the Mt Scheelite Gold Project, including 15m at 6.96g/t gold from 28m, “indicating the potential to increase gold production across the portfolio,” the company said.
The company continued the Phase 1 drill program at its Woyla project in Aceh Province, North Sumatra, Indonesia, with a total of 20 diamond drill holes completed to test the Anak Perak quartz vein-breccia system and 13 diamond drill holes completed to test quartz veins exposed at the Rek Rinti prospect area.
This was the first drilling at the Woyla project since the initial early-stage exploration of the epithermal veins by Barrick began in 1997.
Notable assays from Anak Perak highlighted 3.2g/t gold, 10.4g/t silver over 10.75m from 49.35m-60.1m and Rek Rinti assays returned results including 4.9g/t gold, 68.6g/t silver over 13m (98-111m).
At its projects in Queensland, Australia, FEG is planning a follow-up field program of surface mapping and sampling along the defined 10km long structural corridor that hosts the quartz vein-breccia system in Hill 212.
The field program will also include early-stage exploration in the company’s adjacent Blue Grass Creek project tenement.
In addition, the company has identified eight priority conceptual targets to drill test at the Mount Clark West project.
Freehill Mining completed initial delivery of some 3,000 tonnes of magnetite to Chilean iron ore major Compania Minera Del Pacifico S.A. (CMP) as part of its off-take agreement from the company’s Yerbas Buenas magnetite project during the quarter ending 31 December.
However, the ongoing delivery of magnetite shipments to CMP saw delays in the December quarter, stemming from a technical error in the drone survey work used to calculate the quantities of end-product available for sale and challenges with the nature of the deposit being disseminated from the production process prompted a review of the mine plan, which is being undertaken in consultation with CMP.
Also during the quarter, Freehill made advancements in the development of a commercial strategy to take advantage of market dynamics in the Chilean cement industry.
With its close proximity to the planned major infrastructure projects Freehill says it’s well positioned as a real and potential supplier of aggregate materials, its waste product, for large regional concrete producers.
Some 1,600 tonnes of initial orders have been placed and delivered to date.
Cash and cash equivalents as at the end of the quarter totalled $5000.
During the quarter, the company listed three tenements in South East Queensland; ATP-2037 and ATP-2038 (Canyon) and PL-17 (Bennett Oilfied), and has already made solid progress according to MD Lauren Bennett.
“We are confident of being able to commence the Canyon drilling program by April 2023, which will be our focus for the coming months,” she said.
“If successful, this could represent a large resource and could have the capacity to supply gas to the domestic gas market and the LNG export terminals for decades to come.”
The company has also executed Land Access agreements for both Canyon-1 and Canyon-2 and also reinstated production from the Bennett Oilfield within PL-17.
Bennett-4 started production on October 6, flowing at an average daily rate of 15 to 20 barrels of oil per day (bopd). Bennett-1 was brought online on October 23, flowing at an average rate of 10 bopd.
“Whilst PL-17 is non-core to Omega, generating cash flow at such an early stage in the company’s life is of both a strategic and financial value,” Bennett said.
During the quarter, Omega secured a Special Amendment from the QLD Government to defer its initial work program and relinquishment obligations to the end of 2023 and nabbed a strategic partnership with Tri-Star which invested $4.9 million into the company.
Cash and cash equivalents on 31 December 2022 was $11.3 million.
At Stockhead we tell it like it is. While Far East Gold and Omega Oil & Gas are Stockhead advertisers, they did not sponsor this article.