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.