Spartan’s drilling keeps the high-grade hits coming at Never Never. Pic: Stanislav Hubkin via Getty Images.
Mining
Special Report: Already credited with driving Spartan Resources’ transformation, the high-grade Never Never deposit looks poised to deliver the next phase of growth after drilling returned a monstrous 1,093g/t intercept and more visible gold.
The exceptional deposit, which currently has a resource of 3.83Mt grading 5.85 grams per tonne (g/t) gold, or 721,200oz of contained gold, is central to the company’s revitalisation of the Dalgaranga operation in WA’s Murchison region.
While its previous incarnation – Gascoyne Resources – went into administration after failing to economically mine and process the (then) sub 1 gram per tonne (g/t) gold resource found within the open pit at Dalgaranga, the subsequent discovery of Never Never has changed its fortunes.
Though momentum started to build in May this year when reverse circulation drilling delivered high-grade gold hits, shares in Spartan Resources (ASX:SPR) really exploded when it upgraded resources to the current level.
Since them, SPR has climbed from 20c prior to the announcement to the current 46c — an impressive 130% gain — as investors twigged on to the fact that the company had significant high-grade resources to feed into its established infrastructure.
Its expanded resource drilling program has now added even more fuel into the fire with holes returning new high-grade gold intercepts, visible gold about 110m below the current resource envelope, and that narrow but eye-popping 1,093g/t intersection.
Highlighted assays from the latest batch of results received are:
The company noted that in the lower part of Never Never, there is an apparent shift in high-grade mineralisation laterally south towards the Gilbey’s mineralised system.
Adding interest, drilling at the separate Ink lode returned a 0.82m intercept grading 33.27g/t gold from 250.34m, extending the potential strike of high-grade mineralisation by 135m.
“The assay records keep tumbling the more we drill at Never Never – another indication we have a fantastic orebody on our hands. The fact that we keep hitting visible gold in drill-core and RC chips the deeper we go is also a great sign,” managing director Simon Lawson said.
“It tells us that gold is present in the targets we are drilling and, while never a substitute for actual assays, it continues to reinforce that our exploration model is valid. When we see alteration and damage in the core that is always a great sign but spotting visible gold is always a buzz for any gold exploration geologist!
“With these latest assays validating the very furthest extents of the Never Never resource and multiple drill rigs spinning across multiple targets, we are applying a substantial amount of statistical pressure to good, proven, high-grade gold geology.
“We are working the numbers, closing the gaps, chasing down the leads and hunting those high-grade drill returns.
“Simultaneously, we are working to de-risk Dalgaranga for the future, turning concepts into actual prospects and then into deposits, delivering solid, consistent outcomes and hopefully providing insights to our investors along that journey.
“These latest drill-holes provide a window into the growing excitement at Spartan. Our mineral resource asset base is growing strongly with each drilling campaign, we are well on the path to establishing new high-grade reserves and we have shown we can discover, define and deliver.”
This article was developed in collaboration with Spartan, 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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