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91.7g/t gold hit puts more polish on Great Southern’s Southern Star

Special Report: Great Southern’s Southern Star prospect continues to shine with drilling returning high-grade gold hits outside of the previously ……

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Great Southern’s Southern Star prospect continues to shine with drilling returning high-grade gold hits outside of the previously known extant of near-surface mineralisation.

The second round of results from its maiden reverse circulation drill program features standout hits such as 1m grading 91.7 grams per tonne (g/t) gold within a broader 7m interval at 13.9g/t gold from 123m and 27m at 1.5g/t gold from 77m including 6m at 5g/t gold.

Great Southern Mining (ASX:GSN) also reported new near-surface assays from the first 12 holes such as 36m at 1.1g/t gold including 4m at 3.3g/t gold and 4m at 6.1g/t gold that are outside-of and in addition to previously reported intercepts that topped out at 59m at 2.1g/t gold.

Chief executive officer Sean Gregory said the second round results include the highest-grade individual assays encountered to date at Southern Star within its Duketon gold project near Laverton, Western Australia.

“The results clearly demonstrate the significance and potential of the deposit given the noted similarities to the much larger million-ounce open pit and underground gold mine at Rosemount and to the Ben Hur Deposit, both along strike on the same regional mineralised structure,” he added.

“The presence of these high-grade intersections at depth and outside of known zones of thick near-surface gold mineralisation give us the imperative to immediately follow up with more drilling.”

The company believes the Southern Star deposit is analogous to both the Ben Hur deposit and the Rosemont (>1Moz) open pit and underground gold mine, situated 4 and 24 kilometres northwest along strike respectively.

Ben Hur has been the focus of Regis Resources’ recent drilling efforts culminating in a Mineral Resource estimate 390,000oz at 1.2 g/t gold.

First pass drilling of regional exploration targets at One Weight Wonder, Ogilvie’s, Erlistoun Queen, and Golden Boulder has just been completed and assays are pending.

Long section of Southern Star with pierce points of downhole intersections displayed in gram metres, highlighting the high-grade intersections of previous and recent drill intersections with the recent high-grade intersections at depth highlighted. Pic: Supplied

 

Drill results and next steps

Gold mineralisation at Southern Star is hosted in a steeply east-dipping quartz-dolerite unit that is about 80m wide.

Drilling targets the footwall of the unit as that is where the primary lode is persistent and of high-grade. This high-grade mineralisation has been traced for over 500m of strike and remains open in all directions.

Great Southern adds that the top hit from the second round of results is of particular interest as it was intersected in an area that was previously poorly drilled at depth.

This is a strong indication that further deep drilling is needed to understand mineralisation at depth.

With regional drilling completed, the company has returned the RC rig to Southern Star for further drilling to test for strike extensions at Southern Star and also increase the drill density in the centre of the deposit which has seen sparse drilling to date

 

Non-core tenements

Separately, Great Southern has returned the Cox’s Find tenements to vendor, relieving it of the obligation to pay a deferred payment of $800,000 in return for paying a cancellation fee of $100,000.

The company says this is in line with its mission to “create value through discoveries”, which includes divesting assets that do not warrant immediate allocation of exploration capital.

Consistent with this strategy, it has also disposed the non-core Mt Weld tenements and sold the mining information to a third part for $50,000 in cash.

Funds released from the divestments will be redeployed to accelerate exploration efforts at other projects.

This article was developed in collaboration with Great Southern Mining, 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.

The post 91.7g/t gold hit puts more polish on Great Southern’s Southern Star appeared first on Stockhead.

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BPM finds two walk-up drill targets at its Claw gold project

Special Report: BPM Minerals has won the historical data lottery after identifying two walk-up drill targets at its Claw Gold … Read More
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BPM Minerals has won the historical data lottery after identifying two walk-up drill targets at its Claw Gold Project in WA.

The company found the Lewi and Chickie anomalies by reviewing all the available open file data sets from exploration drilling completed by Reynolds Australia Metals more than 30 years ago.

The historical data included 138 air core and rotary air blast holes for a total of 3,882m targeting the same structure that hosts Capricorn Metals’ (ASX:CMM) Mount Gibson gold project.

“It is rare for a junior exploration company to acquire such highly prospective ground directly along-strike from a 2-million-ounce gold project,” BPM Minerals (ASX:BPM). CEO Chris Swallow said.

“Perhaps even rarer is to find walk-up RC drill targets from an initial data review.

“We have signed a contract for an aeromagnetic survey to be completed later this year.”

Chickie and Lewi anomalies

Key intercepts from the historic drilling at the Chickie anomaly include:

  • 11m at 0.1 parts per million gold (46-57m) including 1m at 0.54 parts per million gold (48-49m);
  • 1m at 0.24 parts per million gold (72-73m EoH); and
  • 10m at 0.17 parts per million gold (50-60m EoH).

At the Lewi anomaly, several anomalous values up to 90 parts per billion gold were reported within the weathering profile.

And the fresh rock – the potential primary source of mineralisation – was never tested below the regolith anomaly.

Plus, the Lewi anomaly is less than 1km from the Mount Gibson project.

Pic: The Claw gold project, with newly identified gold anomalies overlain prospective geology.

Rare exploration opportunity

The company is confident that the Claw project presents a rare exploration opportunity to cover the interpreted southern extension of the Mount Gibson shear zone.

Particularly since 80% of the tenement area regolith is covered and the project is largely unexplored.

The upcoming aeromagnetic survey is planned for Q4 once the Claw tenement has been granted in the coming weeks.

The company will then conduct an RC drilling program of around 3,000m, targeting primary gold mineralisation in the fresh rock.

 


 

 

This article was developed in collaboration with BPM Minerals, 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.

The post BPM finds two walk-up drill targets at its Claw gold project appeared first on Stockhead.

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Precious Metals

Metalstech encounters visible gold at Sturec drilling

 
The drill program on its fully owned Sturec gold project in Slovakia is now in full swing and although it is too early to expect assay results, Metalstech…

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The drill program on its fully owned Sturec gold project in Slovakia is now in full swing and although it is too early to expect assay results, Metalstech (MTC.AX) already provided a quick interim update after the drill bit intersected visible gold in hole 17. This hole is an infill drill hole meant to follow up on hole 14 where Metalstech encountered 10 meters of almost 17 g/t gold within a broader interval of 43 meters of 4.88 g/t gold and 11.8 g/t silver.

Hole 17 is an underground drill hole, drilled from Drill Chamber 2, and the hole is located close to the pit outline used in the 2021 mineral resource update As you can see on the image above, the location of hole 17 is important as it will basically be able to validate the findings in hole 10, 13, 14 and perhaps even hole 5 which ended at the bottom of the pit outline.

We will obviously have to wait for the official assay results from the lab which could be expected in a few weeks.


Disclosure: The author currently has no position in Metalstech. Metalstech is a sponsor of the website. Please read our disclaimer.

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Economics

How Evergrande the parent hurt Evergrande New Energy

One thing that has recently caught my eye has been the unravelling of China Evergrande Group – a conglomerate with over 100,000 employees spanning primarily…

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One thing that has recently caught my eye has been the unravelling of China Evergrande Group – a conglomerate with over 100,000 employees spanning primarily real estate development but also new energy, property services and health amongst other industries.

Keen market observers would be aware of the Chinese government’s recent crackdown on various industries. Most headlines have been focused around the tech giants and the for-profit education sector, but has also involved online gaming companies (gaming restrictions), the steel industry (push for decarbonisation) and most recently Macau casinos. It has also maintained its tightening bias toward the property sector, which has further dampened the prospects for rebar steel, and by extension iron ore.

Property cycles are nothing new in China, with development and prices waxing and waning based on policy and availability of credit and partially responsible for cyclical price movements in iron ore. The most recent slowdown however seems to have hit the highly indebted Evergrande extremely hard, as unravelling confidence in its ability to repay its lenders (split between onshore and offshore) has sparked a sell-off in both its bonds (now trading at 30 cents on the dollar) while the company’s equity value, which peaked at a market capitalisation of over US$50 billionn and was as high as US$47 billion in June last year is now just US$4.4 billion.

One of the more interesting subplots has been the fate of its New Energy Vehicle group, a listed subsidiary in which the China Evergrande parent owns 65 per cent. Early in the Evergrande Saga, the Group proposed selling a stake in its new energy vehicles (NEV) subsidiary as one way to reduce its debt load. In January 2021, the group sold a ~11 per cent stake in the subsidiary to six investors, valuing the business at ~US$34 billion. Amazingly, this transaction – along with the hype surrounding the potential EV market in China and the company showcasing 6 new cars – triggered a furious rally which saw the share price rise 140 per cent in under 3 weeks, while its market cap peaked at US$85 billion despite not selling a single car (shades of Nikola in the US, albeit the NEV subsidiary also holds Evergrande’s legacy assets in the healthcare space and was formerly known as Evergrande Health Industry Group).

China Evergrande New Energy Market capitalisation

Screen Shot 2021-09-17 at 2.48.49 pm

Source: Bloomberg

As concerns around its parent deepened, “investors” became concerned around the potential fate of its subsidiary with the Parent’s 6.35 billion NEV shares seen as a potential source of liquidity. This has seen a stunning collapse in Evergrande NEV’s market cap by ~US$80 billion since mid-April and has also caused liquidity issues in the NEV arm which just reported losses of more than US$742 million.

A good reminder to pay heed of any potential contagion and ripple effects, albeit most are hidden and only discovered after the fact (as well as the obvious lessons on the highs and lows of “investing” in pockets of extreme exuberance).

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