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Gross Divestment Proceeds to Date are Expected to Reach up to $2.9 Billion
Red Mountain Mining Limited (“RMX” or the “Company”) is pleased to advise that it has received geochemical results for 284 soil samples collected during September from the Company’s 100%-owned Flicka Lake prospect in Ontario, Canada. The soil sampling was undertaken in parallel with a rock grab sampling program (refer ASX announcement: 6 November 2024). Samples were taken from around 400 locations within the Flicka Lake claims and 91 rock grab samples and 284 soil samples were collected and submitted for multielement geochemical analysis.
HIGHLIGHTS
- Exceptionally high gold assay results from Flicka Lake in Canada received potentially supporting the discovery of a new Gold and Copper Region
- In soil Gold values returned from two areas include:
- 17.8ppm (17.8 g/t Au), 6.32ppm (6.32 g/t Au) and 1.11ppm (1.11 g/t Au) returned from North of the project area.
- 0.816ppm (0.816 g/t Au) returned for a single sample from the northwest of the claims.
- These results suggest potential for a large concealed high grade vein-hosted gold mineralisation similar to that seen at the Flicka Zone
- Results from the north and northwest of the Flicka Lake project area indicate the potential for near-surface high grade quartz-vein hosted gold mineralisation
- Polymetallic copper-rich soil anomalies with values of up to 2420ppm Cu indicate the potential of Flicka Lake for volcanic-hosted base metal sulfide mineralisation, particularly in the northern part of the tenement
- Potential high grade Copper discovery provides material potential exploration upside given the program was focused on Gold
- The Company will follow up these positive gold and base metal results and the previously identified Flicka Zone prospect with further exploration as soon as practically possible
High Gold in Soil Values Highlight New Gold prospects within the Flicka Lake Claims
Four soil samples from the northern portion of the project area returned exceptionally high gold values of contained 17.8ppm (17.8 g/t Au), 6.32ppm (6.32 g/t Au) and 1.11ppm (1.11 g/t Au) gold. A further sample from the northwest of the project area contained 0.816ppm gold (0.816 g/t Au).
Highly Significant Copper Results
19 samples contained over 200ppm Cu, with peak values of 2420ppm and 1630ppm. The highest copper value of 2420ppm was returned for sample 1291262, located approximately 400m north of the Flicka Zone. Copper results (see Table 1 and Figure 2).
The gold values returned for the soil samples are shown on Figure 1 with 22 samples, listed on Table 1. As outlined in RMX’s ASX announcement of 30 October 2024, the rock and soil sampling program was designed to test ten orogenic gold target zones defined using available geological and geophysical data for the Flicka Lake tenement. Soil sampling was undertaken primarily in areas that lacked surface outcrop, where rock sampling was not possible.
Figure 1: RMX soil gold results for the Flicka Lake project. Values for samples with > 0.1ppm Au are shown. The Fry Lake #9 prospect lies outside of the RMX mineral claims area.
The Company’s geochemical results are consistent with the results of detailed soil sampling from the high- grade Flicka Zone reported by Troon Ventures in their 2003 Assessment Report. Troon reported isolated values of up to 1.19ppm gold (1.19 g/t Au) immediately adjacent to mineralised quartz veins1.
RMX’s results from the north and northwest of the Flicka Lake project area indicate the potential for near- surface high grade quartz-vein hosted gold mineralisation, likely similar in style and tenor to the mineralisation rock chip sampled by RMX at the Flicka Zone (refer ASX Announcement 6 November 2024).
Click here for the full ASX Release
This article includes content from Red Mountain Mining, 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.
Athena Gold Samples 56.5 G/T Gold at Laird Lake, Red Lake Gold District, Ontario
Athena Gold Corporation (CSE:ATHA)(OTCQB:AHNR) ("Athena" or the "Company") is pleased to report high-grade gold samples from its reconnaissance surface sampling program at its newly acquired Laird Lake project, located in Ontario's prolific Red Lake Gold District. The Laird Lake project, spanning 4,158 hectares and covering >10 km of Balmer-Confederation Assemblage contact, represents an underexplored portion of the Red Lake Gold District. The project is road-accessible and lies approximately 10 km west of West Red Lake Gold Mines' flagship Madsen mine, and 34 km northwest of Kinross Gold's Great Bear project.
" We are extremely pleased that our recent expansion into Ontario is already starting to bear fruit. To our knowledge, sample F733057, returning 56.5 g/t Au, is in line with some of the highest-grade surface grab samples publicly reported in the Red Lake Gold District," stated John Power, President & CEO of Athena Gold.
Highlights:
- An initial six surface grab samples taken at the Laird Lake project in July 2024 confirmed mineralization over 2.2 km of strike length along the contact between the Balmer and Confederation Assemblages (Figure 1). Mineralization is open along strike to the east and west.
- The Balmer-Confederation contact is believed to serve as a major structural control for gold mineralization in the Red Lake Gold District, with >90% of all gold ever mined in the camp occurring within approximately 300 m of this contact.
- The highest-grade sample returned up to 56.5 g/t Au collected from a smoky quartz vein with blebby pyrite, chalcopyrite, and traces of visible gold (Figure 3).
- Grab sample assays from additional prospecting work conducted in October 2024 remain pending, with results expected to be received by year-end.
- The recent reconnaissance prospecting program is expected to guide a property-wide geochemistry survey, scheduled to commence in H1/2025, the results of which are anticipated to provide targets for Athena's initial drill program at Laird Lake.
- A recently completed MSc. thesis on the Laird Lake project, suggested that Laird Lake represents the continuation of the same mineralized structure found at both the Madsen and Starratt-Olsen gold mines [i] now owned by West Red Lake Gold (2.5 Moz past-production, 1.7 Moz indicated, 0.4 Moz inferred) [ii] and was later displaced as far as 10 km west (Figure 2).
Figure 1: Map of Laird Lake, showing recent grab samples from July 2024 reconnaissance sampling program.
Figure 2: Map of Laird Lake and Madsen, showing mapped Balmer-Confederation contact and dextral Laird Lake Fault.
Geology:
Gold mineralization observed at Laird Lake occurs in discrete quartz veins hosted in volcanic rock, localized high-strain zones consisting of silicification and disseminated sulfides, and in more broad zones of strongly deformed banded iron formation up to 15 m wide characterized by gossan, fine-grained disseminated sulfides, and silicification. Gold-bearing zones exhibit a general east-west orientation and occur in both Balmer and Confederation Assemblage rocks. The initial grab sample results are described in detail below:
- A sample of smoky quartz vein hosted in Balmer Assemblage volcanic rock containing blebby pyrite, chalcopyrite, and visible gold returned 56.5 g/t Au (F733057). This sample was taken approximately 50 m north of the contact with the Confederation Assemblage and was the most western sample collected. Two additional samples of gossaned and silicified volcanic host rock collected adjacent to the high-grade quartz vein returned 1.47 g/t Au and 2.40 g/t Au (F733056 and F733058, respectively).
- A sample of strongly deformed banded iron formation (BIF) from the Balmer Assemblage containing fine-grained disseminated pyrite, and silicification returned 3.89 g/t Au (F733053), and was collected from an outcrop approximately 15 m in width and characterized by a strong overall deformation fabric with several high-strain zones of gossan, fine-grained pyrite, and silicification throughout. The outcrop is located approximately 60 m north of the Balmer-Confederation contact.
- A sample of sulfide-bearing quartz vein hosted in the Confederation Assemblage returned 1.57 g/t Au (F733062). This sample was collected approximately 225 m south of the Balmer-Confederation contact.
- A sample of sulfide-bearing quartz vein hosted in a high-strain zone within Confederation Assemblage returned 7.18 g/t Au (F733065). The high-strain zone is characterized by silicification, fine-grained disseminated sulfides, and lesser gossan. Refolded quartz veins were noted along the contact of the high-strain zone and volcanic host rock. This sample was collected approximately 180 m south of the Balmer-Confederation contact eastern-most sample collected.
Figure 3: Photographs of grab samples F733053 (left) and F733057 (right) from July 2024 prospecting at Laird Lake.
Figure 4: Photographs of outcrops for samples F733051-53 (left) and F733057 (right) from July 2024 at Laird Lake.
Future Drill Testing:
Laird Lake has been subject to only very limited historical exploration work, largely because the Balmer-Confederation contact was only mapped on Laird Lake in recent times as part of a MSc. research thesis. Importantly, >90% of all gold ever mined in the Red Lake Gold District is estimated to occur within 300 m of this contact. Athena's initial work programs are focused on understanding structural controls and potential splays off this contact that may host high-grade gold mineralization. Additional assays from the follow-up program that took place in October 2024 remain pending, with results expected by year-end. Athena plans to conduct a property wide gold-in-till geochemistry program in Spring 2025. Historical, high-resolution airborne magnetic and electromagnetic surveys highlighted several prospective targets within the Balmer Assemblage that have yet to be tested will be included in future drilling on the property, in addition to other targets generated from prospecting and geochemical programs.
About Our Laird Lake Project
The 4,158 ha Laird Lake property is situated 20km to the southwest of the town of Red Lake, Ontario. Red Lake is a prolific gold mining town in Northwestern Ontario that has seen over 30 Moz of gold produced. Importantly, >90% of the gold has come from within 300 m of the contact between the Balmer and Confederation Assemblages. The Laird Lake property is considered underexplored for gold, relative to much of the surrounding Red Lake Greenstone Belt, despite possessing over 10 km of strike length of the known gold-bearing contact between Balmer and Confederation Assemblage rocks. Also important is being nearby to several major gold production and exploration sites in the region:
- 34km to the Great Bear project (Kinross - 2.7 Moz indicated, and 3.9 Moz inferred) [iii];
- 11 km to the Madsen Mine (West Red Lake Gold - 1.7 Moz indicated, and 0.4 Moz inferred); and
- 28 km to the Red Lake Mine (Evolution Mining - 7.2 Moz indicated, and 4.5 Moz inferred) [iv].
Limited exploration activity at Laird Lake has demonstrated high-grade gold mineralization occurs in both Balmer and Confederation Assemblage rocks over several kilometers in proximity to the main Balmer-Confederation contact. The highest gold grades on the property show a strong correlation to high-strain zones characterized by the presence of silicification, disseminated sulfides, and gossan. The Laird Lake property is dominated by mafic to ultramafic metavolcanic rocks as well as lesser banded iron formation of the Balmer and Confederation Assemblages. Felsic to ultramafic intrusive units are also present throughout the property, most notably of which include the Killala-Baird Batholith to the north, and the Medicine Stone Lake Batholith to the south.
QA/QC
Analytical work for rock samples was completed by AGAT Laboratories, with sample preparation and geochemical analyses completed in Thunder Bay, Ontario. Samples were crushed before a 250-gram split was pulverized to better than 85% passing 75 microns. Rock samples were analyzed for gold by fire assay using a 50-gram charge with an atomic absorption spectroscopy finish. If assay results exceeded 10.0 g/t gold, the sample rejects are analyzed by 50-gram fire assay with a gravimetric finish. Sampling and analytical procedures are subject to a Quality Assurance and Quality Control program that includes duplicate samples and analytical standards.
Qualified Person
Technical information in this news release has been reviewed and approved by Benjamin Kuzmich, P.Geo., a geoscientist and qualified person for the purposes of National Instrument 43-101.
About Athena Gold Corporation
Athena is engaged in the business of mineral exploration and the acquisition of mineral property assets. Its objective is to locate and develop economic precious and base metal properties of merit and to conduct additional exploration drilling and studies on such projects.
For further information about Athena Gold Corporation, please visit www.athenagoldcorp.com .
On Behalf of the Board of Directors
John C. Power
Chief Executive Officer and President
Email: johnpower@athenagoldcorp.com
Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and US. securities laws. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding future exploration plans, future results from exploration, and the anticipated business plans and timing of future activities of the Company, are forward looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "will", "expects", "anticipates", "intends", "estimates", ''plans", "may", "should", ''potential", "scheduled", or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. In making the forward-looking statements in this press release, the Company has applied several material assumptions, including without limitation, that there will be investor interest in future financings, market fundamentals will result in sustained precious metals demand and prices, the receipt of any necessary permits, licenses and regulatory approvals in connection with the future exploration and development of the Company's projects in a timely manner.
The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various risk factors as disclosed in the final long form prospectus of the Company dated August 31, 2021.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements in this press release or incorporated by reference herein, except as otherwise.
[i] Geology and Geochemistry of the Laird Lake Property and Associated Gold Mineralization - https://www.lakeheadu.ca/programs/departments/geology/about/msc-theses/summaries/node/47164
[ii] Independent NI 43-101 Technical Report and Updated Mineral Resource Estimate - https://westredlakegold.com/wp-content/uploads/2024/04/26Apr24_-_PureGold_Mine_NI_43-101_Technical_Report_-_WRLG.pdf
[iii] Great Bear Gold Project Preliminary Economic Assessment - https://s2.q4cdn.com/496390694/files/doc_downloads/2024/09/Great_bear/Kinross-Great-Bear-PEA-TR-REVISED-FINAL-Sep-9-2024.pdf
[iv] Evolution Mining Mineral Resource and Ore Reserve Statement, December 2023 - https://evolutionmining.com.au/reservesresources/
Newmont Announces Sale of Musselwhite for up to $850 Million
Newmont Corporation (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) ("Newmont" or the "Company") announced today that it has agreed to sell its Musselwhite operation in Ontario, Canada, to Orla Mining Ltd ("Orla") for up to $850 million in total consideration.
Under the terms of the agreement, Newmont will receive cash consideration of $810 million upon closing and up to $40 million 1 in contingent payments. The transaction is expected to close in the first quarter of 2025, subject to certain conditions being satisfied. 2 Upon closing the announced transactions, Newmont will have surpassed its target of delivering more than $2 billion in gross proceeds from non-core divestitures.
"We are pleased to be selling our Musselwhite operation to Orla and have full confidence that they will continue to operate responsibly, while maintaining strong partnerships with the mine's workforce and local and Indigenous communities," said Tom Palmer, Newmont's President and Chief Executive Officer . "Today's announcement signifies Newmont's continued progress toward building our go-forward portfolio and delivering on the transaction commitments we made at the beginning of the year. The announced divestitures are expected deliver up to $2.9 billion in gross proceeds to support Newmont's capital allocation priorities, which include strengthening our balance sheet and returning capital to shareholders."
Divestiture Program Progress
In February 2024, Newmont announced the intent to divest its non-core assets, including six operations and two projects from its Australian, Ghanaian, and North American business units. With definitive agreements in place to divest the assets in Australia, Ghana, and now Musselwhite, the Company is focused on completing the sales processes for its other North American non-core assets, which are expected to conclude in the first quarter of 2025. 3
Total gross proceeds from transactions announced in 2024 to date are expected to be up to $2.9 billion. This includes $2.3 billion from non-core divestitures and $527 million from the sale of other investments, detailed as follows:
- Up to $475 million from the sale of the Telfer operation and Newmont's 70% interest in the Havieron project;
- Up to $1.0 billion from the sale of the Akyem operation;
- Up to $850 million from the sale of the Musselwhite operation; and
- $527 million from the completed sale of other investments, including the sale of the Lundin Gold stream credit facility and offtake agreement, and the monetization of Newmont's Batu Hijau contingent payments.
Capital Allocation
Newmont continues to leverage free cash flow from its operations and proceeds from divestitures to enhance long-term value for shareholders by repurchasing shares on a ratable basis. In line with this strategy, the Company has an aggregate $3 billion share repurchase program authorized for execution through October 2026. 4
Since October 24, 2024, Newmont has repurchased 7.2 million shares, totaling $336 million. Since the program's inception 5 , Newmont has repurchased 22.4 million shares, amounting to $1.1 billion. This ongoing progress reflects Newmont's commitment to delivering meaningful returns and lasting value to shareholders.
Additionally, Newmont has made significant progress toward reaching its targeted debt balance of $8 billion, retiring approximately $500 million of debt in 2024 and demonstrating the Company's dedication to a disciplined and balanced approach to capital allocation.
Advisers and Counsel
In connection with the Musselwhite transaction, BMO Capital Markets acted as financial adviser and Goodmans LLP acted as legal adviser.
About Newmont
Newmont is the world's leading gold company and a producer of copper, zinc, lead, and silver. The Company's world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social, and governance practices. Newmont is an industry leader in value creation, supported by robust safety standards, superior execution, and technical expertise. Founded in 1921, the Company has been publicly traded since 1925.
At Newmont, our purpose is to create value and improve lives through sustainable and responsible mining. To learn more about Newmont's sustainability strategy and initiatives, go to www.newmont.com .
Cautionary Statement Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Where a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. Forward-looking statements in this news release include, without limitation, (i) expectations regarding outlook; (ii) statements regarding the sales of Musselwhite, Telfer and Havieron, and Akyem, including, without limitation, expectations regarding timing and closing of the pending transactions, including receipt of required approvals and satisfaction of closing conditions; (iii) expectations regarding receipt of consideration upon closing and receipt of any deferred contingent cash consideration in the future; (iv) expectations regarding use of sale proceeds, capital allocation priorities, and return capital to shareholders; (v) expectations regarding the progress of the divestiture program and the sale of assets which have been designated as assets held for sale; (vi) expectations regarding capital allocation, share repurchase programs and future share repurchases; and (vi) other statements regarding future events or results. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Assumptions include, but are not limited to: (i) certain exchange rate assumptions approximately consistent with current levels; (ii) certain price assumptions for gold, copper, silver, zinc, lead and oil; and (iii) all closing conditions being satisfied.
Divestment Programs: Expectations regarding the divestment of assets held of sale are subject to risks and uncertainties. Based on a comprehensive review of the Company's portfolio of assets, the Company's announced a portfolio optimization program to divest six non-core assets and a development project in February 2024. The non-core assets to be divested include CC&V, Musselwhite, Porcupine, Éléonore, Telfer, and Akyem, and the Coffee development project. While the Company concluded that these non-core assets and the development project met the accounting requirements to be presented as held for sale there is a possibility that the assets held for sale may exceed one year, or not occur at all, due to events or circumstances beyond the Company's control. As of the date of this release, no binding agreements have been entered into with respect to the sale of CC&V, Porcupine, Éléonore or the Coffee development project. The closing of the Telfer/Havieron sale remains conditional on satisfaction of certain conditions including: (i) Newmont and Greatland receiving approval for the transaction from the Foreign Investment Review Board (FIRB); (ii) transfer of key approvals and tenements; (iii) assignment of key contracts and leases; (iv) obtaining specific environmental licenses; (iv) restart of operations at Telfer following remediation of TSF8; and (v) other customary closing conditions. Under the terms of the agreement, expected gross proceeds of up to $475 million, which include cash consideration of $207.5 million, due upon on closing, equity consideration of $167.5 million in the form of Greatland shares, to be issued upon closing and deferred contingent cash consideration of up to $100 million. No assurance can be provided with respect to deferred consideration which may be payable to Newmont in cash through a gold price linked payment structure with a 50% price upside participation by Newmont in respect of gold produced from Havieron for 5 calendar years following the declaration of commercial production, subject to a hurdle price of $1,850/oz. Deferred consideration for the relevant year will be equal to 50% x (market price – hurdle price) x sum of total gold sold for the relevant year (inc. doré and concentrate), subject to the annual cap and the total cap. See the September 10, 2024 press release, available on Newmont's website, for further details re the agreement to divest Telfer and Havieron. The closing of the Akyem transaction remains subject to the satisfaction of certain customary conditions precedent, including but not limited to, the purchaser obtaining the necessary filings, approvals, or registrations from the National Development and Reform Commission, the Ministry of Commerce and the State Administration of Foreign Exchange of the People's Republic of China, and the parties receipt of a no objections letter from the Minister of Lands and Natural Resources of the Republic of Ghana. A failure to satisfy these conditions precedent would delay and/or prevent closing of the transaction. Similarly, receipt of $900 million in cash consideration is subject to closing of the transaction, and an additional $100 million in cash consideration is expected to be paid after the earliest to occur of the ratification of the extended eastern mining lease by the Parliament of Ghana, the ratification of a replacement mining lease to the extended eastern mining lease by the Parliament of Ghana and the five-year anniversary of the closing date. The purchase price payable at the closing is subject to adjustments for closing cash, working capital, inventory, finished goods inventory, and other customary purchase price adjustment items. See the October 8, 2024 press release, available on Newmont's website, for further details re the agreement to divest Akyem. As noted in the footnotes to this press release, the closing of the Musselwhite sale remains subject to purchaser shareholder approval, no material adverse changes, completion of the pre-closing reorganization and key regulatory approvals, including Canadian Competition Act. No assurances can be provided with respect to the timing of closing or receipt of contingent consideration.
Share Repurchase Programs: Investors are reminded that that the extent to which the Company repurchases its shares, and the timing of such repurchases, will depend upon a variety of factors, including trading volume, market conditions, legal requirements, business conditions and other factors. The repurchase program may be discontinued at any time, and the program does not obligate the Company to acquire any specific number of shares of its common stock or to repurchase the full authorized amount. Consequently, the Board of Directors may revise or terminate such share repurchase authorization in the future.
For a discussion of risks and other factors that might impact future looking statements and future results, see the Company's Annual Report on Form 10-K for the year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the "SEC") on February 29, 2024, under the heading "Risk Factors", and other factors identified in the Company's reports filed with the SEC, available on the SEC website or at www.newmont.com . The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," including, without limitation, outlook, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued "forward-looking statement" constitutes a reaffirmation of that statement.
1 Up to a maximum $40 million in contingent consideration may be payable to Newmont in cash in two separate payments of $20 million based on a gold price linked payment structure as follows: a first payment of $20.0 million should the gold price average >$2,900/oz for a full year period following transaction closing and a second payment of $20.0 million should the gold price average >$3,000/oz for a full year period in the second year following transaction closing.
2 Closing conditions include: (i) Orla shareholder approval, (ii) no material adverse change and no transaction-related litigation, (iii) the completion of the pre-closing reorganization, and (iv) regulatory approvals, including Canadian Competition Act. See cautionary statement at the end of this release regarding forward-looking statements.
3 See cautionary statement at end of this release regarding forward-looking statements, including expectations regarding divestments and proceeds.
4 In February 2024, the Board of Directors authorized a $1billion stock repurchase program to repurchase shares of outstanding common stock to provide returns to shareholders. In October 2024, the Board authorized an additional $2 billion share repurchase program to be executed at the Company's discretion, utilizing open market repurchases to occur from time to time throughout the next 24 months. See cautionary statement at end of this release.
5 Includes share repurchases completed through November 15, 2024.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241116933336/en/
Investor Contact – Global
Neil Backhouse
investor.relations@newmont.com
Investor Contact – Asia Pacific
Natalie Worley
apac.investor.relations@newmont.com
Media Contact – Global
Jennifer Pakradooni
globalcommunications@newmont.com
News Provided by Business Wire via QuoteMedia
Orroroo Project Update
- Norfolk engaged Pacific Consultants to build a data base providing for a more model driven approach to further exploration in the expanded tenement package.
- Previously identified gamma anomalies at around 120m depth confirmed reduced sediments (redox environment) developed around this target horizon.
- Structural reinterpretation of the gravity data and phreatic uranium flow model generates new targets.
- Norfolk progressing exploration towards regional approach with focus on broad spaced drilling over possible controlling structures.
Figure 1: Orroroo Project Location Plan
Commenting on Norfolk Metals, Executive Chairman, Ben Phillips, states:
“Norfolk is extremely pleased with the outcomes of Pacific Consultants and our technical team increasing our understanding on the regional prospectivity of the Orroroo Project. The Company expects to conduct a subsequent drilling campaign which must consider all the structurally hosted contributions along with any low cost pre-drilling targeting techniques to be completed prior. We now have additional information to proceed forward with stakeholder engagements and required contractors”
Drill core and drill chips Investigation
Drill core, drill cuttings and muds from holes drilled in the Walloway Basin to the north of Orroroo were recently reviewed at the South Australian (SA) Government core facility in Adelaide.
Figure 2: Spectrometer 153 cps Orroroo 2A reduced sediment margin.
Pacific Consulting was engaged to build a data base providing for a more model driven approach to further exploration across the tenement package. Data incudes drill data from Linc Energy drilling as well as numerous water bores in the district.
A digital data base has been built in Micromine using open file data from the SA Government. A number of water bores and coal exploration holes are located within the Norfolk tenement package. Radiometric logs show a wide spread anomaly in the upper Tertiary at ~ 120m below current surface. The Walloway Coal (lignite) Seam occurs in the lower Tertiary stratigraphy of the basin and is associated with low radiometric anomalism marginal to the lignite.
In borehole Orroroo 2A (Figure 2), the carbonaceous silty clay at ~ 112-114m has an elevated radiometric reading on the margin with oxidized sediments above and below. A clear demonstration that, at least locally, reduced sediments were developed at this target sedimentary horizon and that uranium was deposited on the redox margin. The drill core generally shows large intervals of silt / clayey silt with medium to coarse sand bands now silted up. The current drainage shows a similar and expected pattern in cross section with narrow cobble strewn high energy channels and silty alluvial fans with sandy beds.
The Walloway Basin contains sediment at the base which includes fine-grained sands, clayey sands and clays with minor lignite, of middle to late Eocene age. The overlying sediments include up to 70m of clays with coarse gravel beds, often lenticular. These overlying sediments range in age from mid-Tertiary to Quaternary. Obscuring the Quaternary are older deposits of recent alluvium and outwash material, derived from the surrounding Pre- Cambrian rocks.
While the paleoenvironment has not been reconstructed it can be expected that oxidized groundwater has percolated down gradient into the Walloway Basin carrying uranium which has interacted with either reduced sediments or sediments bearing reduced fluids. The source of the uranium remains uncertain (possibly from the west/northwest), but the coarse (sandy) beds at the target horizon are the clear exploration targets.
Seismic Data
In March 1980, the Department of Mines and Energy South Australia (DME SA) conducted several seismic lines over the Walloway Basin, in particular around the central portion of EL 6552 (Orroroo Project) and the northern portion of EL 6814 (Black Rock Project) (Figure 3).
The purpose of the study was to identify the depth and lithological layers of the Walloway Basin and identify possible structural features that may influence the water intake/flow of the basin.
The results of the seismic survey showed that the Walloway Basin can be divided into different layers based on the different seismic velocities. The layers were then correlated with the lithological units identified in the NFL and Linc Energy drill holes (Figure 4): -
- Quaternary to Recent – Layers 2, 2A and 3
- Upper Tertiary – Layer 3
- Lower Tertiary – Layer 4
- Basement – Layer 5
As confirmed in the drill core and drill chips investigation, Layer 4 (Lower Tertiary unit) consists of interbedded sand, silt and clay which is overlain by Layer 3 (Upper Tertiary), generally thick clay unit. The Lower Tertiary unit predominates and thickens along the deeper troughs of the basin and its sandy nature suggest deposition in a fluviatile environment. The overlying Upper Tertiary unit is a more extensive and continuous unit of grey, brown and black clay, with kaolinite bands indicating deposition in a lacustrine environment.
The general shape of the valley is asymmetrical with western margins steeper than east and bedrock depth up to 350m deep at the observed deepest point on line WB-79-1.
Several sections were constructed from the seismic survey but the two main seismic section lines WB-79-1 and WB-79-2 coincides with the drilling conducted by NFL along the Walloway Creek and Rankin Rd Targets respectively (see ASX announcement: 7 February 2024).
Figure 3: Seismic Survey DME SA March 1980
It was also noted from the seismic study that structurally, the Walloway Basin is fault controlled to the west and the major northwest-southeast fault identified to the east may be a zone of diapiric activity. These faults have also been observed in the interpretation of the regional gravity data.
It is important to note that historical water well drill holes have been included in the seismic sections but no data has been sighted on the public domain database of the DME SA.
Click here for the full ASX Release
This article includes content from Norfolk Metals, 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.
Rua Gold
Investor Insight
Rua Gold offers a compelling investment opportunity driven by its highly promising gold assets in New Zealand’s historic gold-producing regions, and supported by the government’s renewed focus on fast tracking economic growth.
Overview
Rua Gold (TSXV:RUA,OTC:NZAUF,WKN:A4010V,OTCQB:NZAUF) is a gold exploration company focused on two prolific, historic gold-producing regions in New Zealand: Hauraki Goldfield and Reefton Goldfield. Both these regions boast of previous high-grade gold production, with more than 15 million ounces (Moz) produced in the Hauraki district and over 2 Moz in the Reefton Goldfield. New Zealand is a tier 1 mining jurisdiction with highly prospective geology, and a skilled workforce. The new government of New Zealand has committed to promoting economic growth through mining- and business-friendly policies, such as the Fast Track Approval Bill, which proposes quicker approval timelines for a range of projects, including mining.
New Zealand has a rich history of gold production from orogenic deposits (+9 Moz), epithermal sources (+15 Moz), and alluvial deposits (+22 Moz). The country has low sovereign risk with no corruption, making it an attractive destination for mining investment.
The company has launched a fully funded exploration program at its properties. This includes a 2,500-meter diamond drill program focused on the Pactolus prospect at Reefton Goldfield.
Pactolus has returned assays for three of six holes drilled on the system, with hole DD_PAC_035 intersecting 2 meters @ 5.13 grams per ton (g/t) gold. Additional work is required to accurately model this zone's geometry before proceeding with further drilling at this prospect. Consequently, the company anticipates redirecting its focus towards the previously productive areas in Reefton in the near future, which includes the Murray Creek, Crushington, Capleston and Caledonian historic districts. These historic mines collectively produced ~700 koz at 25.2 g/t within a radius of ~20 kms.
The company has applied for a minimum impact access agreement with the New Zealand Department of Conservation for the Glamorgan project. Once granted, the company will commence an exploration program that includes soil sampling, magnetic and resistivity geophysical surveys, and geological mapping.
Rua Gold benefits from a team of professionals boasting extensive expertise in geology and mining. The company’s board of directors is led by Oliver Lennox-King (Fronteer, Roxgold), who has a successful track record developing projects and companies.
Company Highlights
- Rua Gold is a gold exploration company with two highly prospective land packages in New Zealand’s historic gold districts – Hauraki Goldfield and Reefton Goldfield.
- New Zealand is a tier 1 mining jurisdiction boasting highly promising geological formations and a significant history of gold production, with orogenic deposits (+9 Moz), epithermal sources (+15 Moz), and alluvial deposits (+22 Moz).
- The company’s two key assets include the Reefton Goldfield on New Zealand’s South Island and Glamorgan on New Zealand’s North Island.
- The new government is focused on stimulating economic growth, as evidenced by the recent Fast Track Approval Bill, which proposes fast-track approvals for a range of projects, including mining.
- Rua Gold has high-quality orogenic and epithermal gold prospects, boasting historical production grades ranging from 16 to 50 g/t gold.
- Rua Gold is fully permitted and fully financed with significant near-term catalysts. The company has launched an exploration program at its two properties. Drilling is ongoing at the company’s properties in the Reefton district.
- Proposed acquisition of Reefton Resources Pty Limited was approved by the shareholders of Siren Gold (ASX:SNG). Reefton is a 100 percent owned subsidiary of Siren, with tenements located adjacent to the Rua Gold’s suite of properties in New Zealand’s prolific Reefton Goldfield.
- A seasoned board and management team is at the helm of Rua Gold, with extensive regional knowledge and a proven track record of successful discoveries. With full financing and permits in place, the company is well-positioned to capitalize on growth prospects.
Key Projects
Reefton Goldfield
Rua Gold holds six project areas at the Reefton Goldfield – Northern, Capleston, Murray Creek, Ajax, Crushington and Southern. The Reefton district has a rich history of gold production with over 2 Moz of gold recovered at 24.5 g/t. Among the noteworthy findings from recent years of exploration is the greenfield discovery of the Pactolus quartz vein. Sampling and assays conducted thus far have unveiled significant concentrations of high-grade gold in this vein.
Pactolus: Pactolus is a new surface greenfield discovery made by Rua Gold in 2021. Pactolus has returned assays for three of six holes drilled on the system, with hole DD_PAC_035 intersecting 2 meters @ 5.13 g/t gold and hole DD_PAC_036 intersecting 2 meters @ 3.61 g/t gold.
Initial findings and observations validate the southern extension of the Pactolus system by 550 meters, showcasing substantial mineralization at surface. However, accurately determining the plunge and quality of the ore shoots presents a challenge. An additional update is expected upon receipt of results from the remaining drill holes.
Murray Creek prospects: Rua Gold’s systematic exploration has highlighted the potential for the rejuvenation of this district in renewed opportunities around the historic high-grade gold deposits. Rua Gold completed an extensive assessment of the historical mines situated within the company's tenements in the Reefton Goldfield, yielding five targets in the Murray Creek area.
Ongoing drill campaign at the Murray Creek prospects intersected visible gold and confirmed downhole continuity of high-grade gold mineralization.Glamorgan Project
The Glamorgan project comprises over 4,600 hectares in the Hauraki district on New Zealand’s North Island. Hauraki boasts of a substantial presence of high-grade gold and silver mining, with approximately 50 epithermal deposits mined since the 1860s. These deposits have yielded over 15 Moz of gold and 60 Moz of silver. Glamorgan has a 3.8 km zone displaying indications of gold mineralization, backed by soil and rock samples, suggesting the presence of an epithermal gold mineralized system at the property.
Glamorgan is located 2.8 kms north of Oceana Gold’s recent significant discovery at Wharekirauponga. The company has applied for a minimum impact access agreement with the New Zealand Department of Conservation. Once granted, the company will commence an exploration program that includes soil sampling, magnetic and resistivity geophysical surveys, and geological mapping.
After receiving a minimum impact access agreement (MIA) from the Department of Conservation for the Glamorgan project, the company has mobilized an exploration team that has made progress in collecting 2,000 of the planned 3,000 soil sample program; completing the first full phase of UAV drone magnetic geophysical surveying; and commencing ground geological mapping.
Based on initial surface soil geochemistry, interpreted geophysical structures, and geological mapping, there is preliminary evidence that the Glamorgan project has the hallmarks of a significant epithermal gold system, with surface features similar to the adjacent WKP gold deposit. Rua Gold will design a drill program and apply for a full access agreement by the end of the year to commence drilling.
Management Team
Oliver Lennox-King – Non-executive Chairman
Oliver Lennox-King boasts a distinguished and extensive career within the mineral resource sector, encompassing a broad experience in financing, research and marketing. Since 1992, he has occupied senior executive and board roles in various junior exploration and mining enterprises. Most recently, Lennox-King was the chairman of Roxgold from 2012 until July 2021 when it was sold for $1.2 billion to Fortuna. In addition to Roxgold, he also served as chairman of other notable firms, including Pangea Goldfields, Aurora Uranium and Fronteer Gold.
Robert Eckford – CEO and Director
Robert Eckford is a certified professional accountant with significant expertise in mergers and acquisitions, accounting, finance and commercial management within the mining sector. Most recently he was co-founder and head of finance for Aris Mining, and prior to that, has worked with international mining companies, including Barrick Gold, Yamana Gold and Leagold Mining.
Simon Henderson – COO and Director
Simon Henderson is an exploration specialist and has over 40 years of experience, most of which is in New Zealand. He was part of the discovery team for several significant gold finds in New Zealand, such as Wharekirauponga. He maintains robust connections with key local stakeholders and the country's permitting authorities.
Zeenat Lokhandwala – CFO and Corporate Secretary
Zeenat Lokhandwala brings over a decade of expertise in mergers and acquisitions, finance, accounting and taxation. She is the former CFO of Great Bear Royalties and director of finance at Great Bear Resources.
Brian Rodan - Director
Brian Rodan has more than 43 years of experience who is currently serving as Fellow of the Australian Institute of Mining and Metallurgy. Rodan is the founding director of Dacian Gold (ASX:DCN)
Mario Vetro - Director
Mario Vetro has extensive experience structuring and providing guidance to resource companies. He is the co-founder of K92 Mining and the proprietor of Commodity Partners.
Paul Criddle - Director
Paul Criddle has extensive experience constructing and overseeing gold mines in Australia and West Africa. He was formerly a chief operating officer for West Africa at Fortuna and also served as the COO for Azimuth and Perseus. He was previously the managing director at Matador Mining.
Tyron Breytenbach – Director
Tyron Breytenbach is a geologist with operational and capital markets experience. He is currently the CEO of Lithium Africa Resources. Previously, he was senior vice-president of Capital Markets at Aris Mining and served as managing director at Cormark Securities. Before transitioning to capital markets, Breytenbach spent a decade in the mining sector as a geologist, focusing on orogenic and epithermal gold deposits and specializing in resource estimation. He earned his BSc (Honours) degree from Rand Afrikaans University in South Africa and is a designated professional geologist in Ontario.