Spartan is proving up targets close to its 2.5Mtpa Dalgaranga processing plant. Pic via Getty Images.
Mining
Latest results from an ongoing, extensive 32,000m drilling campaign are potentially adding ounces left, right and centre to Never Never as Spartan looks to upgrade its 3.83Mt @ 5.85g/t 721,200oz resource.
Spartan Resources (ASX:SPR), the former Gascoyne Resources, is up 250% year-to-date after mothballing the ~1g/t Dalgaranga Gold Project to focus on exploring for high grade ounces at the exciting Never Never discovery.
Never Never, on a granted Mining Lease in the shadow of a well-maintained 2.5Mtpa processing plant, has been a game-changer for the company.
Outstanding drill hits culminated in a Mineral Rresource Estimate of 721,200oz at 5.85g/t gold at a low discovery cost of $13/oz (compared to the global discovery cost of US$62/oz).
There is potential for further growth via an ongoing drill blitz, as its full extent has yet to be defined.
With 3-4 drill rigs spinning, the latest batch of gold assays have unearthed a new discovery at Patient Wolf – a geophysical target less that 2km from the processing plant – including a highlight 10m at 19.84g/t gold from 96m (incl. 4.00m @ 40.15g/t).
Other drill hits included 40m @ 7.03g/t Au, including 14.3m @ 10.57g/t at the base of the conceptual Never Never open pit, and 18m @ 11.95g/t Au from 315m.
ln tandem, several “near-mine” targets are being aggressively drilled out, Spartan says, including the high-grade West Winds and Four Pillars structural targets, located within and beneath the former Gilbey’s open pit to the south of Never Never.
Spartan MD Simon Lawson says the approach is a very simple one: “Discover, Define, Deliver High-grade gold ounces.”.
“One key focus in realising this strategy is minimising execution and operational risk by drilling high-confidence, high-grade gold resources and delivering reserves on our main granted Mining Lease and within a short radius of our 2.5Mtpa processing plant,” Lawson says.
“This focus has already delivered the significant 721koz @ 5.85g/t high-grade Never Never gold deposit and this has established our confidence by further drilling high-density intercept patterns at various angles in order to maximise our geological understanding, and as a consequence de-risk future mine planning.
“This plan has also seen us attract some of the best engineering talent in the industry to join our team – to plan, design, schedule and, most importantly, manage our future mining plans.
“We are looking to increase our high-grade target set and de-risking our future through our ongoing drilling efforts, our geophysical and geochemical studies, internal and external structural review and ‘boots-on-ground’ field observations.”
This approach has led Spartan to re-evaluate previously thought low-grade targets in the region.
“We have reviewed and revealed new targets within mineralisation historically thought to be only low grade like the high-grade Four Pillars and West Winds prospects, which we are now defining and we are now re-evaluating existing high-grade gold deposits like Plymouth and Sly Fox with targeted future drilling.”
This article was developed in collaboration with Spartan Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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