Victory’s positive ASX debut sets stage for big gold push at Cue
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Western Australia-focused debutant Victory Goldfields has a positive introduction to the ASX with shares closing up 10% to 22c from its list price of 20c.
The company, which holds a number of advanced projects in the Cue goldfields in the state’s Mid West region, started trading on the ASX yesterday following a successful public offer that raised $5m for its aggressive drill programs.
Victory Goldfields (ASX:1VG) has already secured a diamond drill rig to carry out 6,400m of drilling in August across three standout targets that will be followed up by 1,800m of reverse circulation drilling.
This initial campaign includes resource definition drilling at the Coodardy and Eaglehawk targets and the testing of mineralised extensions at Emily Wells.
More immediately, it will start auger drilling this month on other prospective targets.
“The board is excited to introduce Victory and its excellent Cue goldfields tenement portfolio to the market,” executive chairman Trevor Matthews said.
“We have been actively planning and preparing the company for an accelerated start with prospect access arranged and diamond and auger rigs to commence exploration work on a number of highly prospective targets in the coming weeks.”
“Following the successful capital raising, Victory is well funded to implement our exploration programs and we look forward to providing shareholders and potential investors with further news in the near future.”
The company’s portfolio comprises 46 granted tenements and 7 tenement applications covering 73.88sqkm.
Notably, it hosts 52 historical gold mines – most of which are more than 100 years old – that prove the presence of a gold system and have had little modern follow-up exploration carried out on them.
Despite their age, some of the mines have excellent production records that show average grades of up to 100 grams per tonne (g/t) gold being mined near surface, a strong hint at the potential that could be lurking under the surface within the company’s tenements.
Victory is clearly aware of this and previously told Stockhead that Coodardy will be the likely first target of its upcoming drill program and it is not hard to see why given that historical drilling had returned results such as 14m at 4.6g/t gold and 13m at 3.46g/t gold.
It plans to drill 24 holes totalling 3,430m over two phases to close up the spacing of historical drilling and to also test for mineralisation at depth.
Likewise, drilling at Eaglehawk – once a shallow producing mine – will follow-up on historical drilling, which returned a stand-out intercept of 5m at 18.2g/t gold to the end of a hole.
Diamond drilling at this prospect will test lode continuity and contribute to a resource definition program.
Over at Emily Wells, historical drilling within the existing open pit returned intersections including 6m at 17g/t gold, 10m at 2.2g/t gold, and 3m at 28.3g/t gold.
Additionally, more than 600m of gold-in-soil anomalies have been recorded north of the pit.
These are just the tip of the iceberg with Victory also keen to explore prospect such as Tuckanarra (Nemesis), Mafeking, Young Australia, Monte Carlo, Lady Godiva, Klondyke, Buttercup and King Billy.
This article was developed in collaboration with Victory Goldfields, 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.