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Siren Gold Limited (ASX: SNG) (Siren or the Company) is pleased to announce that it has entered into a definitive agreement regarding a A$20m transaction for a sale of the Reefton Project.
Highlights
- Siren has entered into a definitive agreement with Canadian listed RUA Gold Inc. (CSE:RUA) for the sale of the Reefton Project to consolidate the Reefton Goldfield.
- This transaction will create the largest gold explorer on the Reefton Goldfield on the West Coast mining district of New Zealand’s South Island.
- The transaction will create the largest tenement package of 1,242km2, on the high-grade Reefton Goldfield that has produced +2Moz at 15.8 g/t Au.
- The proposed transaction is for RUA to acquire Siren’s 100% owned subsidiary, Reefton Resources Pty Ltd (NZ), with the key outcomes being:
- RUA to acquire the Reefton Project for A$20m, comprising A$2m in cash and A$18m in RUA shares.
- Siren Chairman Mr Brian Rodan will join the RUA Board on completion of the transaction.
- Acquisition price of A$45/oz, based on Reefton’s current 444,000 oz inferred Mineral Resource Estimate (MRE)2.
- Post transaction, Siren will hold approximately 30.2% of RUA’s common shares outstanding, maintaining a significant interest in the Reefton project as well as acquiring an interest in the high-grade Glamorgan Project in the North Island of New Zealand.
- Siren will retain the Sam’s Creek Project with a current MRE of 824koz @ 2.8g/t Au and remain listed on the ASX (Refer Table 1).
- The total consideration equates to approximately A$0.10 per issued share of Siren, which represents a 28.4% premium over Siren’s closing share price on 12 July 20241.
- Post transaction Siren will have cash and investments of over $20m, representing 10cps per SNG share, and it will focus on the Sam’s Creek Project, which currently has a MRE of 824koz of gold and a pending mining permit application, whilst shareholders will remain invested in Reefton through the RUA shareholding.
- The transaction is subject to customary conditions and approvals such as shareholder and regulatory approvals and is expected to close in Q4 2024.
Consolidation of the Reefton Goldfield
Siren Gold Limited (ASX: SNG) (“Siren” or the “Company”) is pleased to announce that it has entered into a definitive agreement dated 14 July 2024 (the “Definitive Agreement”) with Reefton Acquisition Corp., a wholly owned subsidiary of Canadian Securities Exchange listed RUA Gold Inc. (“RUA”), whereby RUA will acquire 100% of the capital of Reefton Resources Pty Ltd. (“Reefton Resources”), a wholly owned subsidiary of the Company, for A$20 million in cash and shares of RUA (the “Transaction”). Reefton Resources owns 100% of the tenements that comprise Siren’s Reefton Project.
The Transaction, expected to be completed in November 2024, provides Siren with a cash payment of $2 million and $18 million in common shares of RUA (the “RUA Shares”). Following completion of the Transaction, Siren would own approximately 30.2% of the current estimated issued and outstanding RUA Shares. The Transaction eliminates the need for a potentially dilutive near-term equity raising to continue exploration at Reefton, while retaining continued ownership and upside in the expansion and future development of the Reefton Project.
The Transaction will establish RUA as the dominant landholder in the region, with approximately 1,242km2 of tenements in the historical Reefton Goldfield. Following completion of the Transaction, RUA will be well positioned as the pre-eminent gold explorer on the Reefton Goldfield in New Zealand, with a pro forma market capitalisation of approximately C$60 million (A$64.9 million)2. Combining properties and exploration activities in the Reefton Goldfield provides a number of strategic benefits, including:
i. Consolidation of the tenement package, creating the dominant Reefton Goldfield explorer
ii. Significant project synergies for mine development and a central processing hub
iii. Larger exploration programs with more consistent news flow
iv. Combines mine permitting and expedites eventual project construction
v. Combined company best positioned to further consolidate the Reefton Goldfield
vi. Siren retains upside in exploration and development of a consolidated Reefton
vii. Siren will be able to focus on exploration and development at Sams Creek
viii. RUA will be focused on exploration and development of the combined Reefton belt
Figure 1: Tenement map of the Reefton Goldfield district.
Siren Managing Director and CEO, Victor Rajasooriar commented:
“Siren’s vision for the Reefton region has been to create a significant high grade gold producer with a central processing facility fed by numerous underground mines. This transaction is a significant step in realising this vision and a great outcome for Siren shareholders. Siren can focus on the multi-million-ounce potential at Sams Creek while RUA can continue to explore the consolidated Reefton Project. This transaction is at a ~3.8x premium EV/ Resource multiple compared to Siren’s current share price and will enable Siren to fast-track Resource growth at Sams Creek, while RUA can fast-track gold and antimony Resource growth at Reefton. New Zealand is open for business and this partnership with RUA allows Siren to fast-track exploration and development of its asset base.”
RUA CEO, Robert Eckford commented:
“The transaction between RUA and Siren Gold is a significant step in RUA becoming the largest tenement holder of the highly prospective Reefton Goldfield district, home to host rocks with high-grade gold and antimony. This transaction is a natural fit for our portfolio and creates the opportunity for real synergies, which, in combination with local knowledge, sets us for a rapid re-rating from further exploration success and resource delineation across the combined land package.”
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This article includes content from Siren Gold, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
SNG:AU
Asara Recommences Exploration Activities at Kada
HIGHLIGHTS
- Relogging of core samples.
- Drone survey to identify additional mineralisation recently undertaken.
- Geological and structural mapping of new drone imagery and fieldwork.
- Planning for the commencement of a drill program in early 2025 to upgrade the existing Mineral Resource Estimate.
- Community engagement to strengthen relationships with local communities.
- Preparation for commencement of environmental studies.
Managing Director, Tim Strong commented:
“We are excited to recommence work at Kada following a pause in field activities throughout 2024. Our team is back on the ground, refurbishing camp facilities, re-logging core samples, undertaking geological and structure mapping in the Massan area and establishing important community relationships. In addition, we have deployed a drone to assist in determining the structural orientation of historical work undertaken and identify potential areas of gold mineralisation that may not have been previously recognised.
Looking ahead, we expect drilling to begin in the March quarter of 2025. The drilling program will focus on upgrading portions of the Massan Mineral Resource to the Measured category, as well as testing additional structures that are not currently included in the Mineral Resource Estimate.’’
KADA GOLD PROJECT
Exploration Activities
Activities at Kada recommenced during October with the installation of a new water borehole and a 10,000 litre capacity water tower at the Niandankoro Camp. All camp areas were connected to the new water system providing running water throughout.
The camp has undergone a detailed inventory, and store areas have been prepared in readiness for the commencement of fieldwork and then drilling.
Figure 1: Niandankoro Camp
Figure 2: Geology stores and RC chip storage
Figure 3: New drone imagery of Massan showing structure and geologists inspecting areas of mineralisation
Geological and structural mapping of the workings have commenced. This is a combination of desktop interpretation of recent drone imagery and fieldwork.
Figure 4: Fieldwork at the Massan deposit
Figure 5: Weather station installed at Niandankoro Camp and meetings with local dignitaries and community leaders
Community and Environment
The Company recognises the importance of engaging the local community, strengthening working relationships and to share information and understand local expectations and resolve any issues as and when they arise. To that end, work has commenced to establish social and environmental baselines. Over the last month, meetings were held with Company representatives, local elders, the Mayor of Niandankoro and Sous-Prefet which were beneficial and greatly appreciated by all attendees.
A weather station has been installed at Asara’s Niandankoro Camp giving vital baseline data for the environmental studies that will commence in 2025.
Burkina Faso
As announced on July 14, 2024, the Company entered into a binding Share Purchase Agreement (SPA) with Bic West Africa Limited (BIC) for the sale of its non-core Kouri and Babonga gold projects for total consideration of US$2.2m cash. The Company is continuing to work towards satisfying the Conditions Precedent outlined in the SPA, having recently obtained approval from the Tax Office with approval of the transaction by the Minister of Mines the final step. Following approval from the Tax Office, BIC made an advance payment of US$550,000 (against the final Completion Payment of US$1.1m). It is expected that the final payment of US$550,000 will be made by BIC once the Mininter of Mines has approved the transaction. It is expected that this approval will be obtained by the end of the December 2024 quarter.
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This article includes content from Asara Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
High-Grade Gold & Copper Assays at Thorpe Prospect
Highlights:
- ROCK CHIP SAMPLING ASSAYS RETURN GRADES OF UP TO 45.8 G/T GOLD AND 10.3% COPPER AT THORPE PROSPECT
- SURFACE GOLD FOOTPRINT OF CARLOW TENEMENT CONTINUES TO INCREASE
- ROCK CHIP SAMPLING OF VEINS WITHIN TWO STRUCTURES AT THORPE DELIVERS HIGH-GRADE GOLD, COPPER AND SILVER ASSAY RESULTS, INCLUDING:
- Rock Chip Assay Results (Sample No)
- 45.8 g/t Au, 3.7% Cu & 38.6 g/t Ag (24AR22-020)
- 12 g/t Au, 1.1% Cu & 3.7 g/t Ag (24AR22-014)
- 5.9 g/t Au, 1.0% Cu & 17.8 g/t Ag (24AR22-006)
- 3.4 g/t Au, 2.5% Cu & 4.2 g/t Ag (24AR22-031)
- 3.0 g/t Au, 2.1% Cu & 24 g/t Ag (24AR22-026)
- 6.2% Cu, 0.8 g/t Au & 5.6 g/t Ag (24AR22-016)
- 6.1% Cu, 1.6 g/t Au & 13.5 g/t Ag (24AR22-009)
- 10.3% Cu, 0.4g/t Au & 69.4 g/t Ag (24AR22-013)
- PLANS FOR DRILL TESTING PRIORITY TARGETS WHICH INCLUDE AREAS OF HIGH GRADE GOLD, COPPER AND SILVER VEINS AT SURFACE, IS ADVANCED
The Company has undertaken further ground reconnaissance and rock chip sampling across the Carlow tenement, with the goal to map all outcropping mineralised veins and structures and define additional priority targets for drilling.
The current exploration strategy is to use industry best techniques including geochemical and geophysical surveys combined with structural interpretations to identify targets within what Artemis considers is a wide, highly prospective and underexplored structural corridor with potential to host substantial gold deposits.
Executive Director George Ventouras commented:“We are very excited that prospects located on the Carlow tenement continue to deliver further high-grade gold, copper and silver results from extensive veins at surface.
While several of these prospects have had minor drilling programs, the exploration team continues to compile data to identify the source of the widespread gold discovered at surface. Combined with the Titan prospect and other targets in the immediate Carlow area, the future looks very bright for the Karratha Gold Project.”
Figure 1. Artemis West Pilbara tenements with current known prospects named
Thorpe Prospect
The Thorpe Prospect is located in the southeast part of the Carlow tenement, E47/1797. The recent ground reconnaissance program involved collecting additional rock chip samples at Thorpe to define the extent of the gold bearing veins and other structures. A small number of samples were also taken close to the Carlow deposit.
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This article includes content from Artemis Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
New Murchison Gold Provides a Mineral Resource Update for the Crown Prince Deposit
HIGHLIGHTS
- Mineral Resource Estimate substantially increased for the Crown Prince Deposit at Garden Gully with a 3G% increase in the Indicated classification estimate to 226koz at 4.6 g/t Au.
- The total Mineral Resource has grown by 16% from the February 2024 estimate, to 27Gkoz at 3.G g/t/Au.
- With 81% (up from 68%) of gold ounces in the Indicated Mineral Resource classification, there is now a strong understanding of the Crown Prince deposits, reflecting enhanced drill density, in some places to 15 m x 15 m grid.
- Mineral Resources are shallow and delineated from surface. Gold mineralisation is open at depth and will be followed up with deeper drilling as the project progresses.
- Crown Prince’s mineralisation is mostly situated within a 300 m x 380 m area. The Mineral Resource Estimate, beneath the mineralised cap rock, shows an average of 1,538 oz of gold per vertical metre between 10 m and 150 m depth.
- The structural corridor, which hosts the Crown Prince deposits, is open to the south and is relatively untested. To the north, recent passive seismic delineated a wide and thick paleochannel (up to 60 m depth). The northern area below the paleochannel may be better explored from underground or base of open pit positions.
- Crown Prince is strategically located in the heart of the prolific Murchison gold district, with close proximity to numerous operating gold mines, processing facilities and other key infrastructure.
- NMG is close to announcing a detailed Feasibility Study (environmental, social, mining, metallurgy, geotechnical, hydrogeological) to support a robust value proposition for mining Crown Prince
Alex Passmore, NMG’s CEO commented: “Following a busy year of exploration and development work in 2024, the Company is delighted to report an increased Crown Prince Mineral Resource Estimate from the additional drilling undertaken.
With increased drilling density, the understanding of the Crown Prince deposit is at a strong confidence level with 81% of the ounces (i.e., 22C,000 oz) now reporting to the Indicated Mineral Resource classification. Pleasingly, the average ounce per vertical metre endowment sits at 1,538 within key areas of our conceptual open pit development.
This resource underpins the detailed feasibility study work which is well advanced to confirm the mining, metallurgical, geotechnical, economic and environmental parameters to develop the Crown Prince Gold Project.
Initial economic optimisation modelling of the Crown Prince resource confirms that there is sufficient grade and tonnage to sustain an open pit mining operation.”
Table 1: Crown Prince MRE Summary November 2024
This MRE (Table 1, Figure 1) was prepared by Cube Consulting, an independent consultant, using geological and mineralisation interpretations prepared by NMG using all available reverse circulation and diamond drillhole data. The updated Crown Prince MRE incorporates all drilling completed and assayed up to October 2024. Over the course of 2024, NMG’s exploration team completed 21,974 m of reverse circulation and diamond drilling within the Crown Prince area.
Following the discovery of the south eastern zone (SEZ) of mineralisation at Crown Prince in 2022, follow up exploration in 2023 and 2024 successfully added resource inventory via infill and extensional drilling.
Multiple phases of drilling were undertaken in 2024 (Table 2) with resulting assays now incorporated into the resource model supporting the November 2024 estimate for Crown Prince.
Mineralisation envelopes at the Main and Northern Zones were also better defined for this model. Additionally, new high-grade lodes were discovered in the Northern Zone contributing to the uplift seen in this updated MRE.
The Crown Prince deposit is hosted within quartz-carbonate veins within altered and sheared mafic units. In the weathered profile, primary mineralisation (fresh rock) has in places been enriched with a supergene overprint. Notably, primary mineralisation persists at depth and remains open (Figure 2). Further drilling will be undertaken to test for extensions.
Table 2: Drilling Summary for Crown Prince
Figure 1: Crown Prince MRE mineralisation wireframes, isometric view looking north.
Figure 2: Isometric view looking north of Crown Prince block model
Material Information Summary – Mineral Resources
Information required by ASX Listing Rule 5.8.1 (summary of technical information pertaining to the Mineral Resource Estimate) is detailed in the following sections.
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This article includes content from New Murchison Gold Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
