Gold: Tyranna looks to Eureka mine for a quick $2.6m cash boost
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Explorer Tyranna Resources (ASX:TYX) wants to take advantage of healthy Australian gold prices by mining the shallow gold ore at its historic Eureka gold mine.
This won’t be a game-changer for the company – just 4100oz over an initial two month mine life – but it will fill the explorer’s coffers with about $2.6m in free cash flow.
This will fund additional exploration at Eureka, near Kalgoorlie in WA, testing extensions to the south and at depth.
For shareholders this is great news, because it means Tyranna is less likely to go back to the market, cap-in-hand, for more cash.
A recently completed Re-Start Study reckons it will cost about $700,000 to get started, and assumes the ore can be processed at a nearby third party processing facility.
“We plan to generate cash flow to self-fund exploration to grow our assets at Eureka with minimal shareholder dilution,” says Tyranna managing director Bruno Seneque.
“Plans are underway to secure a funding solution that will enable Tyranna to commence mining at Eureka and in the meantime, mining approvals will be fast tracked, mining and haulage contractors appointed, and negotiations with the preferred toll treater will be concluded.”
Good drilling results can put a rocket under a small cap share price, so here’s a few campaigns to keep your eye on:
Ausmex Mining (ASX:AMG) is fast tracking a bunch of drilling campaigns at the Mt Freda complex near Cloncurry QLD. It will have six rigs turning at the same time, partly to define a JORC gold resource suitable for a shallow, high grade bulk mining operation. Initial assays are due at the end of June.
Great Western Exploration (ASX:GTE) is kicking off a 1000m RC program at the Yandal West project, where it is targeting “high-grade, Jundee style gold mineralisation” at the St Ives prospect. Great Western says there’s similarities with the massive Jundee mine in WA, where the gold discovered in the granite was part of a much larger gold system that increased with depth. Assays due to be released in mid to late June.