WA explorer Syndicated Metals says a newly acquired, early stage project resembles the +6 million-ounce Tropicana deposit. Here’s hoping.
Today, Syndicated (ASX:SMD) scored itself a second major landholding in the Laverton gold district of WA, buying an 80 per cent interest in the Edjudina project from Gateway Mining (ASX:GML).
For Gateway, which is focused on its +240,000oz Gidgee project, Edjudina is a non-core asset.
For Syndicated, it represents a potential company maker. It says one of the key attractions is Edjudina’s “geological similarities” with the mammoth Tropicana gold-copper deposit.
Previous exploration work on Edjudina, mostly during the 1980s and 1990s, was pretty light and happened at a time when the gold price was less than $US300/oz ($435/oz).
The project — highlighted by a very large, very continuous gold anomaly — is untouched by deeper drilling.
But early drilling results “present as very similar in nature to the early intersections at the multi-million-ounce Tropicana gold deposit further east”, Syndicated told investors.
“It wasn’t until drilling was conducted beneath the base of complete weathering at Tropicana that the true nature and extent of the primary mineralisation was understood.”
The ~$7m market cap stock — which has ranged between 0.4c and 1.4c over the past 12 months — was up almost 15 per cent to 0.8c in morning trade.
Syndicated will complete project due diligence process by November 30, before paying Gateway $250,000 to enter into a joint venture at Edjudina. Syndicated will manage the joint venture and Gateway will be ‘free carried’ (they don’t have to pay anything) until a decision to mine.
READ MORE about Syndicated:
Minnow Syndicated could be sitting on something big at Newington, shares jump 34pc
In other ASX gold news today:
Meteoric Resources (ASX:MEI) keeps hitting high grades at the newly acquired Juruena gold project in Brazil. The explorer returned about 1m grading 45.8 grams per tonne (g/t) at the base of the existing high‐grade Dona Maria resource (88,000oz at 12.7g/t gold) which “confirms” the high‐grades keep going at depth, the company says.
Also — copper-gold hits at the neighbouring Crentes prospect “raises the potential for additional gold-rich porphyry discoveries across the entire Juruena project”.
READ MORE: Barry FitzGerald: Why Tolga Kumova backs Meteoric