Moho’s goal of early East Sampson Dam gold production given a boost
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Special Report: Moho Resources (ASX:MOH) is closing in on potential gold mining at its East Sampson Dam prospect after completing the acquisition and reducing royalty rates.
The company has completed the acquisition of the remaining 30 per cent interest in M27/263 from Odin Metals (ASX:ODN), giving it complete control of the high-grade prospect that it is looking to mine as soon as possible.
Importantly, Moho has renegotiated the existing 1.5 per cent net smelter royalty with Mithril Resources (ASX:MTH) with a new tiered structure that improves its economics.
Under the new structure, production of the first 20,000 ounces of gold will incur a 0.5 per cent royalty rate. This increases to 1 per cent for production from 20,001 to 99,999 ounces of gold before hitting 1.5 per cent for all production beyond 100,000 ounces.
Royalties for other minerals remains at 1.5 per cent.
“The 100 per cent acquisition and reduced initial royalty rates for M27/263 mark a significant step forward for potential gold mining operations at the East Sampson Dam prospect,” managing director Shane Sadleir said.
M27/263 forms part of Moho’s Silver Swan North project about 50km north of Kalgoorlie and is close to established mine infrastructure and gold processing facilities.
Previous drilling by the company returned high-grade results including 2m at 24.61 grams per tonne (g/t) gold within a broader 5m intersection grading 10.36g/t gold from a depth of 54m.
This is well above the 5g/t that is generally considered to be high-grade, highlighting the potential for East Sampson Dam to be commercialised quickly.
Results are currently pending for a recent 16-hole drilling program totalling 1,426m that was aimed at infilling and extending gold mineralisation along with preliminary metallurgical test work.
Mining studies are also currently underway while a second drilling stage is expected to begin in the current quarter.
Auger sampling of existing gold anomalies is planned for the East Sampson Dam prospect in late 2020 while air core drilling of auger gold anomalies and geophysical will also be carried out in the fourth quarter.
This will lead to a maiden JORC mineral resource statement at year end that will, in turn, feed into the scoping study.
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.