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Breaker Resources
Overview
A mining asset’s jurisdiction is often as critical as the deposit itself. A mining-friendly and politically stable jurisdiction allows mining companies to develop assets to their full potential without interruption or shifting regulations.
Breaker Resources (ASX:BRB) is an exploration and development mining company with a 1.7-million-ounce gold resource within a newly discovered gold district in Western Australia, 100 kilometers east of Kalgoorlie, in the heart of Australia's gold mining region. The company has been focusing on exploration and is now transitioning to developing its assets. Breaker also discovered the Manna lithium deposit on its tenement in 2018, a project that was upgraded through RC and diamond drilling and then sold for a total cash consideration of $87M in October 2022. The company has an experienced management team and sophisticated institutional investors moving its assets towards full development, with a strong cash position based on its divestment of Manna.
Western Australia has earned the top spot in the Fraser Institute’s annual report on top mining jurisdictions in the world, citing the Australian state’s geologic attractiveness and favorable government policies. Western Australia produces roughly 80% of Australia’s gold, and its mining industry accounts for approximately half of all national gold experts. Mining companies with assets in Western Australia are in an excellent position to become world-class operations.
The company has accounted for many of the high-risk elements involved with taking an asset from exploration to development.
Breaker’s flagship asset is the Lake Roe Gold Project, which holds an estimated 1.7 million ounces (Moz) of gold. To date, the company has identified a 9-kilometer-long gold system within 50 kilometers of prospective strike. Additionally, the company has a track record of consistent resource growth since 2018, generating one ounce of gold for every $40 spent after 315,000 meters of reverse circulation and diamond drilling.
One of Lake Roe’s key deposits, Bombora, is shaping up as a 3-kilometer-long single open-pit operation that will transition to an underground mine. This deposit is the company’s focus for early development, and the ability to transition to underground operations, offering a longer mine life and the ability to blend higher grade ore with material coming from the open pit.
Breaker Resources has two additional projects that add substantial depth and optionality to the company’s portfolio. The company has a 20 percent free-carried interest in the Manna Lithium Project, with Global Lithium Resources carrying all costs to completion of a positive bankable feasibility study (BFS). Breaker is also entitled to milestone payments of up to $20 million). A maiden mineral resource of 9.9 Mt @ 1.14 percent lithium oxide was announced on February 17, 2022 and drilling is expected to continue growing the resource. The Ularring Project is located 100 kilometers east of Perth, and just 45 kilometers east of Chalice’s Julimar project. Ularring has indications of a large gold-copper system and potential for a nickel-PGE discovery on an untested 20- to 30-kilometer-long ultramafic/mafic belt, with soil anomalies and electromagnetic targets. Both of these projects offer significant exploration upside to Breaker as they develop Lake Roe.
An experienced team leads the company with diverse backgrounds. Peter Cook, non-executive chairman, is a trained geologist with over 35 years of experience in developing gold mines and corporate management. Mark Edwards, non-executive director, has over 25 years of experience in resources and corporate law. Additional experienced managers round out the team and build confidence in their ability to lead Breaker Resources toward its ambitions.
Company Highlights
- Breaker Resources is an exploration and development mining company with a 1.7 Moz gold resource and a portfolio of quality assets in Western Australia, the world’s top mining jurisdiction for investment attractiveness, according to the Fraser Institute.
- The company has been conducting exploration programs and metallurgical testing that has significantly de-risked its asset portfolio. As a result, the company believes it has addressed the significant high-risk elements involved in taking a project into production.
- Lake Roe Gold, the company’s flagship project, has a track record of consistent resource growth dating back to 2018. It also contains a 9-kilometer gold system within a 50-kilometer prospective strike.
- The company’s other projects have potential to add a lot of value, including the potential to fund a significant component of the capex for a gold development.
- A strong, proven management team with decades of experience leads the company towards its ambitious goals.
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Transitioning From Explorer to Developer in Western Australia
High-Grade Gold Confirmed at Bronzewing South
- Partial results received from the diamond tail of drill-hole BWSRC081 with the visible gold zone returning 15.5g/t Au over 0.48m from 416.5m. This high- grade zone is reported within a broader intercept of:
- 8.95m at 1.32g/t Au from 414m, including:
- 0.48m at 15.5g/t Au from 416.5m; and
- 0.55m at 3.52g/t Au from 422.4m.
- 8.95m at 1.32g/t Au from 414m, including:
- Follow-up drilling along strike from these intercepts is scheduled to commence in the coming days to define the extent of the south-trending zone of gold mineralisation with a diamond tail of drill-hole BWSRCD086.
- Drill results indicate the inadequacy of historical air-core drill testing with a significant search space now open on the boundary with the historical Bronzewing Mining Lease.
- Diamond drilling at the Central Target, located ~1.7km to the south of the Eastern Target and within the same structural corridor, has encountered zones of intense locally massive quartz veining associated with brecciation below historical Hammer gold drilling anomalies of:
- 20m at 1.5g/t Au from 120m in drill-hole BWSRC0037, including:
- 8m at 2.4g/t Au from 120m; and
- 4m at 3.9g/t Au from 120m.1
- 20m at 1.5g/t Au from 120m in drill-hole BWSRC0037, including:
- Assay results from the remaining program will be progressively released in the coming weeks.
Figure 1. Photo of massive quartz carbonate veining intersected in drill-hole BWSRCD082 diamond tail at Hammer’s Central Target Zone (213m to 221.5m).
Hammer’s Managing Director, Daniel Thomas, said:
“The confirmation of high-grade gold mineralisation at Bronzewing South is a significant step in our search for an economically viable gold target at our Yandal Gold Project. High-grade mineralisation can be traced with multiple intercepts to the north of our project area, with the mineralised structure interpreted to extend for hundreds of metres.
“We will now look to test this structure approximately 100m further south on our project area. We are very much looking forward to follow-up drilling at the Eastern Target, as we enter a zone without any previous drilling coverage.
“The team is encouraged by the observations in recent drilling at the Central Target and the potential for this corridor to be connected to the Eastern Target drilling some 1.7km to the north. This corridor is largely untested below the ineffectual air-core drilling and, with a prominent shear zone interpreted to connect these targets, it is of high interest to the team in our search for a significant gold discovery.”
Figure 2. Plan view of the Bronzewing South tenement EPM36/854, showing Bronzewing orebodies on Northern Star Resources mining lease, historical Hammer RC drilling intercepts and the structural corridor of interest containing Hammer’s Central and Eastern Target Zones (refer to ASX announcement 9 November 2020).
Click here for the full ASX Release
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