Independent Investment Research reckons junior gold and nickel explorer (and potentially near-term developer) Moho is highly leveraged to exploration success at its projects in Western Australia and Queensland.
The research report says the company’s plans to develop the East Simpson Dam gold deposit as a toll treating operation is key for funding ongoing activities at Silver Swan North.
“The current low market capitalisation makes it relatively hard to raise decent amounts of cash without severely diluting shareholders, however the company’s plans to develop East Sampson Dam are a solution to this, providing cash flow for exploration without overly diluting shareholders,” IRR said.
Moho Resources’ (ASX:MOH) Silver Swan North deposit is just 50km NE of Kalgoorlie, and within trucking distance of several mills – which is critical for the company’s plans of developing the East Sampson Dam gold deposit as a toll treating operation.
“The 21,600 oz East Sampson Dam deposit is shaping up to be a reasonable development asset, with a grade of 2.5 g/t gold at a 0.5 g/t cut in soft, potentially free dig near surface oxide material,” IRR said.
“Mineralisation is open, with the potential to add ounces, and with aircore drilling on adjacent gold prospects currently underway.”
Moho plans to start a scoping study on the defined mineralisation soon, and is planning RC drilling to test northern and southern extensions of deposit and at depth. It’s currently aircore drilling over the adjacent Tyrells and Hodges gold prospects.
“Should the development studies demonstrate a viable project, East Sampson Dam has the potential to provide significant cash flow to fund exploration,” IRR said.
IRR also flagged the potential for additional nickel discoveries at Silver Swan North, with the company applying for tenements along strike from, and adjacent to, Poseidon’s (ASX: POS) nickel assets.
Burracoppin better than ‘low-hanging fruit of the eastern Goldfields’
IRR said that Moho’s Burracoppin and Empress Springs assets, while earlier stage properties “are located over what is, in our view, high prospective ground in different geological terranes.”
“Burracoppin is located over high grade metamorphics of the South-Western Gneiss Terrane of the Yilgarn, and more particularly the Tampia Shear Zone, which extends to the south to Ramelius Resources’ (ASX: RMS) Tampia operation, which has resources of 460,000 oz.
“The terrane is largely underexplored (explorers have preferred the low-hanging fruit of the Eastern Goldfields), however work by Moho, including drilling, has returned very positive results, and indicated that there are similar metamorphosed greenstones to those hosting Tampia.”
Assay results are pending from a recently completed diamond drilling program.
Empress Springs hydro geochemistry looks good
At the Empress Springs asset in Queensland, the company is exploring for large mineral systems within the Croydon volcanic complex – considered similar to the Gawler Range volcanics in South Australia,
“Like Burracoppin, the Empress Springs project is underexplored, with one reason being the presence of up to 75m of sedimentary cover,” IRR said.
“Work completed to date has provided very positive results, including hydro geochemistry, that highlights several prospects, and which the CSIRO has stated are within the top 1% of hydrogeochemical anomalies that they have defined in Australia.”
Moho is planning aircore drilling and geophysical exploration, including an IP survey at the Arrowhead prospect.
This article was developed in collaboration with Moho 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.