Latest high-grade assays include the deepest-ever result from the Dalgaranga Project; Spartan set to develop underground exploration drill drive; High-grade resource growth potential multiplied as new Pepper discovery grows
Spartan Resources Limited (Spartan or Company) (ASX:SPR) is pleased to provide an update on exploration and development activities at its 100%-owned Dalgaranga Gold Project (“DGP”), located in the Murchison region of Western Australia.
Highlights:
Never Never Gold Deposit – key high-grade gold deposit – 0.95Moz @ 5.74g/t – growing!
11.60m @ 15.10g/t gold from 861.40m down-hole (DGDH068)
“Pepper” Gold Prospect – recent high-grade discovery adjacent to Never Never – growing!
11.28m @ 5.94g/t gold from 585.72m down-hole (DGDH069):
Intercept located approximately 80.0m down-dip of the initial “Pepper” discovery hole DGRC1432-DT, which returned 17.52m @ 15.86g/t gold.
Numerous additional diamond drill-holes have intersected lower tenor mineralisation up-dip of the discovery hole, giving a possible explanation as to why Pepper remained undiscovered until now, as it appears to be a “blind” gold prospect – i.e., improving at depth (current assays detailed in Table 1 and further assays pending).
West Winds Gold Prospect – high-grade broad and strike extensive mineralised shoot – growing!
28.65m @ 4.25g/t gold from 458.00m down-hole, including 4.60m @ 18.30g/t (DGRC1446-DT)
This latest intercept is one of the deepest and highest grade (gram x metre) intervals drilled at West Winds to date. The grade appears to be improving with depth, similar to Never Never.
Exploration Drill Drive – Update
All new intercepts are from steeply-plunging, high-grade gold deposits and emerging prospects located on an 800m long, semi-continuously mineralised north-south stratigraphic horizon.
Fully-funded exploration drill drive designed parallel and adjacent to this horizon to provide underground drill platforms to more effectively define these existing targets, as well as explore for further high-grade shoots and provide critical underground infrastructure as Spartan develops its future mine plan.
Strong interest received from underground contractors with a competitive tender process underway, site visit completed and requests for quotation sent to multiple parties. Similar process underway for underground diamond drilling, with an initial scope of 60,000m of diamond core.
Subject to receiving final regulatory approvals, mining of the underground drill drive is set to commence in 2H CY2024, with diamond drilling designed to follow development as it progresses north and south (see Figure 1).
Figure 1: Long Section of the Never Never Gold Deposit, Pepper, Four Pillars and West Winds Gold Prospects looking East. New high-grade intercept assays highlighted in yellow callout boxes. Note the proposed exploration drill drive design in the foreground (western wall of Gilbey’s Open Pit).
This release contains updated assay information from recent surface drilling targeting the high-grade Never Never Gold Deposit, the immediately adjacent and growing Pepper gold prospect and the nearby West Winds gold prospect. This release also contains assays from early-stage ongoing surface exploration drilling north of Never Never.
Management Comment
Spartan Managing Director and Chief Executive Officer, Simon Lawson, said: “Our recent exploration updates show that our aggressive drilling strategy is continuing to deliver on its key objectives – growing our high-grade resource inventory while at the same time making new high-grade discoveries.
“We keep applying drill pressure to good geology – and the results continue to demonstrate the enormous potential of the broader Gilbey’s mineral system, which now contains multiple high-grade, steeply plunging deposits and emerging prospects along an 800m corridor running from north to south.
“The latest results also reinforce the compelling logic behind the proposed development of our underground exploration drill drive. This critical piece of infrastructure will be another game-changer for the Spartan team as it will significantly increase our resource growth and future reserve generation efforts by using more cost effective, more accurate and faster underground drilling methods from platforms located closer to our existing high-grade targets.
“The drill drive allows us to optimise our drilling strategy in a way that is simply unachievable from surface, while also unlocking the very real potential to make new high-grade discoveries from underground platforms where you are literally situated inside the geology.
“We are situating the drill drive in the hanging-wall of the Gilbey’s mineralised sequence to optimise the geotechnical advantages of the very competent gabbro wallrock and to optimise the drilling angles and stand-off distance to all of our main high-grade targets. Lastly, we are developing the exploration drill drive at standard underground development dimensions in order to maximise the value of the sunk capital by future-proofing its inclusion in any potential mining scenarios.
“In the two years since discovery, we have built a Mineral Resource of almost 1 million high-grade ounces at Never Never, and we can clearly see potential growth beyond 1,000m.
“The newly discovered Pepper gold prospect, situated less than 100m along-strike from Never Never, is showing better grades at depth, and we are also beginning to see some of the best high-grade intercepts to date as we drill deeper at both Four Pillars and West Winds. This trend of improving grades at depth is exactly what we saw at Never Never.
"Fresh from our recent $80 million equity raise, Spartan is in a position of unparalleled strength as we move ahead with our multi-pronged strategy to unlock the potential of the Dalgaranga Gold Project.
“Surface drilling is continuing with four rigs, preparatory work is underway for the start of the exploration decline and mine development study work is in full flight.
“The stage is well and truly set for what is shaping up to be an extremely busy and exciting 6-12 months as we deliver further resource growth, mine studies and establish the underground infrastructure required to bring this outstanding asset into production.”
This article includes content from Spartan 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.
Australia is the second largest producer of gold worldwide, according to the US Geological Survey, and Western Australia (WA) is the dominant player in the nation’s gold market accounting for nearly 70 percent of the total production. Gold mining is the third-largest commodity sector by value in WA, producing nearly 6.9 Moz (or 214 tonnes) in 2022 valued at A$17.8 billion. Eleven of the world’s biggest gold mines are in WA, where Spartan Resources is advancing its flagship Dalgaranga Gold Property.
Formerly known as Gascoyne Resources, Spartan Resources (ASX:SPR) is engaged in the exploration, evaluation and development of gold projects. The company is currently undergoing a pivotal transformation, underpinned by the exceptional high-grade Never Never gold discovery in 2022, less than 1 kilometre from its less-than-5-year-old, existing 2.5-Mtpa carbon-in-leach processing facility in care and maintenance, and the lower grade open pits at Dalgaranga.
Drilling at Never Never has led to the discovery of 721 koz at an average grade of 5.85 g/t gold. Driven by the potential for further resource upgrade, Spartan secured $50 million in funding in February 2023 to support its aggressive exploration program at Never Never. This program, which is intended to last 18 months, is targeting: more than 300 koz reserve at a grade exceeding 4.0 g/t gold; more than 600 koz resource at a grade exceeding 5.0 g/t gold; and the development of a 5-year mine plan capable of generating 130 to 150 koz of gold per annum.
The Dalgaranga property is in proximity to multiple gold-producing projects including Ramelius Resources’ Mt Magnet Project, Musgrave Cue Project, and Westgold Resources’ Tuckabianna gold mill. Historically, Mt Magnet has produced over 6 million ounces since discovery in 1891, which increases confidence in the resource potential of Dalgaranga.
In parallel with the company’s planned exploration program at Never Never, Spartan is progressing with permitting and evaluation of its 244-koz Yalgoo Gold Project, which is expected to provide an important source of ore feed to supplement the high-grade ore from Never Never. In addition, the company owns the 537-koz Glenburgh and Mt Egerton Gold Project in the Gascoyne region, which has the potential to become a second production hub for Spartan Resources.
Company Highlights
Spartan Resources Limited is an Australia-based company engaged in the exploration, evaluation and development of gold projects. The company was formerly known as Gascoyne Resources but changed its name to Spartan Resources Limited (Spartan) in August 2023 after a series of incredible discovery drill holes and exploration success that justified the transformation of the business.
Spartan is currently focused on the newly discovered high-grade Never Never gold deposit, part of its 100-percent-owned Dalgaranga Gold Project (Dalgaranga) in Western Australia. The Never Never discovery was made in mid-2022 and is less than 1 kilometre from the existing 2.5-Mtpa carbon-in-leach processing facility and the main open pit at Dalgaranga. The Dalgaranga Process Plant is less than five years old and is well suited to the new discovery and existing lower grade ore deposits.
Spartan’s Dalgaranga gold project is located 475 kilometres northeast of Perth and approximately 65 kilometres west of the 6-Moz high-grade Mt Magnet gold camp in the Murchison Region of Western Australia.
In November 2022, the company, then Gascoyne, suspended mining and milling operations of the former focus of its operations, the lower grade circa 0.8-1.0g/t Gilbey’s open pit to focus on the recently discovered high-grade Never Never gold deposit.
The strategy has thus far paid off extremely well with drilling, defining a growing high-grade mineral resource of 3.8 Mt @ 5.85 g/t gold for 721,200 oz. The Never Never gold resource, when added to the existing lower-grade Dalgaranga Gold project mineral resources brings the total resource to 16.7 Mt at 2.2 g/t gold for 1.18 Moz. Keep in mind the discovery and establishment of the high-grade Never Never deposit has more than doubled the grade of the previous Mineral Resource Estimate on which the infrastructure was built.
Spartan also has three other gold projects, the Yalgoo Gold Project, which is 110 kilometres west of, and two others roughly 500 kilometres further north of Dalgaranga, the Glenburgh and Egerton Gold Projects. With all resources combined, the global mineral resource estimate for Spartan currently stands at 38.51 Mt at 1.6 g/t gold for 1.96 Moz of contained gold.
Looking to the immediate future, the potential for further growth within the Spartan portfolio is extensive. The current 32,000-metre drilling program at Dalgaranga is already underway with the aim to extend the existing Never Never resource at depth, as well as identify new look-alike targets along strike to the north and south, such as the newly identified higher-grade Four Pillars and West Winds shoots, and follow up of the Patient Wolf high-grade target 1.6 kilometres north of the Never Never discovery.
The next resource update will summarise the efforts of the current drill campaign across multiple targets and is scheduled very shortly in Q4 2023.
Spartan raised $50 million in February 2023 to underpin an 18-month exploration and strategic plan (the “365” strategy) aiming to develop a five-year mine plan with the goal of generating 130 to 150 koz of gold per annum. This strategy appears well on track with the resource target, the “600” already achieved with work underway on the “300” reserves and establishing the minimum “5-yr” mine life currently.
An additional $25 million was raised in November 2023 to accelerate Spartan’s high-grade growth strategy and support an expanded exploration campaign at Dalgaranga in 2024.
Also in February 2023, the company established an exploration target of 4 to 5 Mt @ 4.6-6.2 g/t for 600 koz to 1 Moz gold at the Never Never Gold Deposit.
With a current resource of 3.8 Mt @ 5.85 g/t for 721 koz gold and an imminent resource update due, Spartan has delivered on what it said, and looks solid to continue to do so.
Key Projects
Dalgaranga Project
Spartan Resources’ flagship Dalgaranga Gold Project is located 475 kilometres northeast of Perth and approximately 65 kilometres northwest of Mt Magnet in Western Australia. The Dalgaranga Project includes a fully developed operation comprising a fully established gold mine, a 2.5 Mtpa carbon-in-leach processing facility, modern camp accommodation, and an airstrip.
The Dalgaranga mine produced 71,153 oz in FY 2022 before being placed on care and maintenance in November 2022 to facilitate the implementation of a new strategic and restructuring plan. The new plan is focused on the high-grade Never Never gold deposit discovered in 2022, less than 1 kilometre from the existing 2.5 Mtpa processing facility.
Never Never Gold Deposit is located within the Dalgaranga property immediately to the north of Gilbey’s open pit and within 1 kilometre of the process plant. Never Never is much higher grade than any of the previously defined ore bodies at Dalgaranga and appears to be far more structural, fold and/or shear-hosted as opposed to the more stratigraphic/shale-associated historically defined Gilbey’s series of gold deposits.
The strategy to focus on high-grade Never Never has thus far paid off with drilling defining a mineral resource of 721 koz gold contained within 3.83 Mt at 5.85 g/t. The Never Never gold resource when added to the Dalgaranga Gold project mineral resources brings the total resource to 16.7 Mt at 2.2 g/t gold for 1.18 Moz.
In light of the success of the drilling program, Spartan has expanded its current drill program to 32,000 metres with up to six rigs operating on-site (previously, 25,000 metres with four rigs). The expanded program looks to target extensions of known mineralization, further upgrading the high-grade 721,200 oz mineral resource estimate (MRE) for the Never Never Gold Deposit. The company ultimately aims to deliver a new mine plan to feed the 2.5 Mtpa processing plant for at least five years. The target for the five-year mine plan is to deliver gold production of 130 to 150 koz per annum.
Some of the more significant assay results under the current drill program include:
Drill-hole DGRC1305-DT registered the deepest ever gold intercept 576 metres down-hole at Never Never. While the assay results for the hole are yet to be published, this discovery is significant as it demonstrates that the deposit remains open at depth.
Drill-hole DGRC1283-DT returned 18.56 metres at 6.71 g/t gold from 495 metres, including a high-grade mineralized zone of 2.56 metres at 32.19 g/t gold.
Drill-hole DGRC1276-DT returned 7 metres at 34.34 g/t gold from 372 metres, including high-grade mineralized zones of 1 metre at 95.90 g/t gold and 2.5 metres at 49.50 g/t gold.
Drill-hole DGRC1271-DT returned 3.2 metres at 7.95 g/t gold from 310.3 metres, including a high-grade mineralized zone of 1 metre at 12.29 g/t gold.
Drill-hole DGDH039, targeting the West Winds area, intersected 20.52 metres at 2.38 g/t gold from 420.48 metres, including a high-grade zone of 5 metres at 6.22 g/t gold.
Drill-hole DGRC1245, targeting the Arc gold prospect, intersected 4 metres at 8.33 g/t gold from 106 metres including high-grade zone of 1 metre at 30.66 g/t gold.
Notably, in October 2023 Spartan announced a new gold discovery, Patient Wolf, located immediately to the north of Never Never which returned a massive 10 metres at 19.84 g/t gold, including a high-grade zone of 4 metres at 40.15 g/t gold. This new site is located 1,600 metres north of Never Never and 1.9 kilometres from the processing plant.
The company will now accelerate planned resource diamond drilling across multiple high-grade targets, including Never Never, Four Pillars, and West Winds along with a dedicated RC rig at the new Patient Wolf prospect. The ultimate aim is to deliver the scheduled resource update for the project in Q4 2023, which will grow Spartan’s high-grade resource inventory within a 2-kilometre radius of the 2.5-Mtpa Dalgaranga process plant.
Spartan is well-funded to support its drilling programme and develop its five-year mine plan, having secured a $50 million funding package in February 2023, which included a $26.3-million equity raising, a $21.3-million investment from highly respected global resources private equity fund Tembo Capital, and a $2.5-million unsecured loan from existing major shareholder, Delphi.
Yalgoo Gold Project
The Yalgoo Gold Project is located 110 kilometres by road from the Dalgaranga Gold Project and comprises two deposits, namely the Melville deposit and the Applecross deposit, which is adjacent to the northern end of the Melville deposit. The Yalgoo Gold Project hosts a mineral resource of 243,600 oz contained within 5.2 Mt at 1.4 g/t gold. Exploration activity at this project has slowed down with the Never Never deposit at Dalgaranga taking priority as the next source of higher-grade ore.
Glenburgh Gold Project
The Glenburgh Gold Project (Glenburgh, spread over an area of 2,000 square kilometres, is located in the southern Gascoyne region of Western Australia. Glenburgh has a JORC 2012 mineral resource estimate of 16.3 Mt at 1.0 g/t for 510,100 ounces of gold.
Mt Egerton Gold Project
Mt Egerton Gold Project is spread over an area of 200 square kilometres and is located in the Gascoyne region of Western Australia. Two known deposits exist at Mt Egerton – Hibernian and Gaffney’s Find – both located within granted mining leases. Mt Egerton hosts a current resource of 27,000 oz of contained gold, with strong growth potential.
Management Team
Simon Lawson – Managing Director
Simon Lawson is a professional geoscientist with more than 16 years of operational experience spanning multiple commodities and jurisdictions. He was one of the founders of Northern Star Resources (ASX:NST) and under his leadership transformed the company from a small Western Australian gold miner into a multi-billion dollar global gold mining heavyweight. He has also worked with Firefly Resources Ltd., Superior Gold (TSXV:VSGD) in various senior leadership roles. Lawson brings considerable operational management and technical experience to the board of Spartan and has set in place a firm strategy to take Spartan forward through consistent production, improved cash flows, commercial dealings, and near-term production-focused resource/reserve growth.
Rowan Johnston – Non-Executive Chairman
Rowan Johnston is a mining engineer (graduating from the West Australian School of Mines) with significant experience as an executive and non-executive director. He is currently interim non-executive chairman of Wiluna Mining Corporation, non-executive director of Kin Mining NL, and has previously been managing director of Excelsior Gold. Johnston has worked and studied in the mining (primarily gold) industry for 40 years throughout Australia and overseas and has experience working for owners, consultants, and contractors. He has worked through several feasibility studies, start-ups, construction, and production.
Hansjoerg Plaggemars – Non-Executive Director
Hansjoerg Plaggemars is a seasoned professional with experience in structured debt finance, and equity capital markets including capital increases and decreases, restructurings and insolvencies. He has worked as CFO in various industries including software, retail, prefabricated housing and e-commerce. Since 2017, he has set-up his own consultancy firm, Value Consult. Plaggermars currently sits on a number of boards as a non-executive director or supervisory member. He holds a degree in business administration from the University of Bamberg.
David Coyne – Non-Executive Director
David Coyne has over 30 years of experience in the mining, engineering and construction industries, both within Australia and internationally. Prior to joining Spartan, Coyne held senior executive positions with Australia-listed companies Macmahon Holdings, VDM Group, Peninsula Energy, and with unlisted global manganese miner Consolidated Minerals. He has previously served on the boards of listed companies such as Peninsula Energy and BC Iron.
John Hodder – Non-Executive Director
John Hodder is a geologist by background with a B.Sc. in geological sciences and a B.Com. in finance and commerce from the University of Queensland. He also has a master’s in finance from London Business School. He has served as a director of a number of junior mining companies and has significant experience of operating and investing in Africa. He also worked at Suncorp and Solaris as a fund manager focusing on the resource sector managing an index-linked natural resource portfolio of A$1.25 billion.
Tejal Magan – Chief Financial Officer
Tejal Magan is a chartered accountant with over 10 years of experience in the mining, oil and gas, and construction industries, within Australian and internationally listed companies. She has been at Spartan Resources since December 2018. Previously, she worked with Austal, a shipbuilding company, where she held the role of financial controller for the Australian business unit. Before joining Austal, she worked at Cliffs Natural Resources, a global mining company, where she held various roles including accounting and reporting controller, corporate controller, and senior corporate accountant.
Craig Jones - Chief Operating Officer
Craig Jones is a qualified mining engineer with more than 28 years’ experience in West Australian underground hard-rock mining operations, primarily in operational leadership roles. Prior to joining Spartan, he was the chief executive officer of Poseidon Nickel and previously the chief operating officer for Bellevue Gold, where he played an instrumental role in establishing the restart of the historical operation, leading the feasibility study and forming part of the team that delivered financing of the project. An inclusive and hands on leader, Jones is renowned for building engaged and driven work cultures and for his dedication to working collaboratively across diverse stakeholder groups.
This article was written in collaboration with Couloir Capital Ltd.
The gold price has hit record levels in 2024, leaving investors wondering just how high it can go.
During a recent webinar presented by the Mining Network, host Simon Catt, asset management director at Arlington Group, was joined by a group of industry veterans who gave their thoughts on where gold and silver may be going.
The group was comprised of Eric Sprott, founder of Sprott Securities and Sprott Asset Management; Franco-Nevada (TSX:FNV,NYSE:FNV) founder and Chair Emeritus Pierre Lassonde; Ned Naylor-Leyland, gold and silver fund manager at Jupiter Asset Management; Luke Gromen, founder of macroeconomic research firm Forest for the Trees; and Michael Oliver, founder and CEO of technical research firm Momentum Structural Analysis.
Read on for an overview about what they said about the future of the yellow and white metals.
Historic precedent for gold price gains
2023 saw the gold price trading between support and resistance as investors kept to the sidelines and favored the high yields and safety of the bond market and interest-bearing assets.
This year, markets are on edge due a slew of factors, including a volatile macroeconomic situation, spiking sovereign debt, grinding conflicts in Eastern Europe and the Middle East and an upcoming election in the US that is all but guaranteed to create deeper divisions within the world’s largest economy.
Oliver sees a situation starting to play out that is reminiscent of the gold bull markets that ran from 1979 to 1980 and 2010 to 2011. “I think we have the most interesting set of dynamics for this year that we’ve ever seen in markets compressed into a short-term period of time,” he said during the panel.
Like today, these were periods of high volatility. The end of the 1970s brought staggering growth in inflation, and central banks responded with skyrocketing interest rates; meanwhile, 2010 saw interest rates fall to near 0 percent on the back of a recession caused by an imploding housing market in the US.
In both cases, investors looked to hedge their portfolios with gold and drove the price to new highs.
What came after? Oliver said that both gold and silver prices saw huge gains. “During those times not only did gold and silver go vertical, but silver outpaced gold by double and triple," he noted.
He believes a similar situation is setting up in 2024 with instability in the financial system, geopolitical uncertainty and a reverberating sense of nervousness in the markets.
Lassonde also looked back to the 1970s, recalling an inflationary environment that bears similarities to today. He pointed to increasing US debt, with a US$2 trillion per year deficit and policies that are injecting more cash into the market.
“They’re printing money, and when you’re printing money, you’re going to create inflation and it’s going to be very, very sticky,” he told listeners during the online event.
De-dollarization boosting global gold demand
Gromen intimated that America's high debt load is reducing confidence in the US dollar as a global reserve currency and causing a reduction in foreign holdings. Instead, central banks are moving to gold as a means to diversify.
He pointed to China, which has been making bulk purchases of gold as a matter of national security as it attempts to limit its use of the US dollar and deals with a global distrust of the yuan for trading commodities like oil.
“Yuan oil demand is turning gold back into an oil currency, and on an annual dollar production basis the oil market is 12 to 15 times the size of the physical gold market,” Gromen said.
This sentiment was echoed by Lassonde when he spoke about the future of the greenback, noting that gold isn’t needed when the dollar performs its function as a reserve currency.
“But when it doesn’t, that’s when gold usually shines,” he said.
Lassonde also suggested that actions from the US have effectively weaponized the dollar.
Against that backdrop, some countries, like those in the BRICS bloc, have become frustrated with the US and are pursuing their own system. Lassonde sees this manifesting in strong central bank buying of gold, noting that more than 1,200 metric tons were accumulated in 2023, representing over a third of the 3,400 metric tons produced.
He also pointed to another entity in the over-the-counter market that has been driving the gold price, but said he doesn’t think it’s central banks. Simply calling it a "whale," Lassonde said he's seen moves in the market where calls have been bought at higher prices. “Is it Chinese interests that are doing this? I don’t know. Nobody knows. I’ve asked around, nobody knows, but it is a very interesting time in the gold space right now,” he said.
Is silver due to follow gold higher?
While there has been a lot of media attention surrounding gold as price records continue to be set, silver too has benefited, and may be poised for an even greater surge. As a monetary metal, silver is influenced by the same macroeconomic and geopolitical variables as gold, but it has an additional industrial component that is spiking demand.
While Gromen still sees silver as a monetary metal for the masses, he doesn’t see it being useful to central banks that are looking to deleverage their debt. He said if that happened it would drive the price of the white metal in ways that would ultimately collapse the economy, likening it to oil and copper.
“If you take oil up from US$80 a barrel to US$400, the global bond market is going to collapse, and the bottom half of the global population is going to starve. If you did so with corn, if you did so with wheat, if you did so with copper — same sort of dynamic. Those are very useful commodities,” Gromen said.
While bullish on silver, Sprott believes the market is manipulated and the price is suppressed.
“I look at what happened on the last day of March, and the price of silver looked like it wanted to go when it was being suppressed … I’m assuming that the guys who are short the 800 million ounces of silver on the COMEX didn’t want the price to explode for quarter end, which of course is very important to banking institutions. Needless to say, from that day on silver has basically gone straight up,” Sprott said. Silver surged above US$30 per ounce on May 17.
Sprott said that according to the Silver Institute, demand for silver is outstripping supply by 200 million ounces. A considerable portion of that demand is silver destined for India, which purchased 76 million ounces in February, representing nearly all the production of silver for the month, and another 32 million ounces in March.
In addition to Indian demand, Sprott spoke about how there is a push in China to invest in silver. “China has come out in advertisements on TV suggesting their citizens should buy silver rather than gold. Now, that is a rather dramatic thing when you’re thinking that 1.4 billion people over there are all buying silver when there is already a shortage,” he said.
Naylor-Leyland also touched on the theme of silver market tightness during the webinar, saying the market imbalance is favoring a rise in price based solely on industrial demand for the white metal.
He also suggested that a positive shift in investment could send the silver price soaring. “I think that the market at some point will have to understand that the silver is going to come from somewhere, and then I see that as the best, most obvious way that investors can benefit from a big rewriting of the mining equity space,” he said.
How high can gold and silver prices go?
Overall, the panelists see variables aligning to support a surge in prices for monetary metals.
Lassonde believes one possible outcome is the ratio between gold and the Dow Jones Industrial Average (INDEXDJX:.DJI) becoming 1:1. Citing historical events to support this claim, he noted that it’s happened twice over the past 120 years.
The first instance was after the Great Depression, when the Dow lost 90 percent of its value between 1929 and 1934, going from 380 points to 36, matching the price of gold at the time.
The second was from 1979 to 1980. Lassonde explained that after it peaked at over 1,000 points in 1966, the Dow retreated to around 600 points by the mid-1970s. This came alongside the end of the gold standard in 1971, and the price of gold moved higher. By 1980, the Dow had recovered to 819 points and gold had soared to US$800 per ounce.
“Do I believe it’s going to go back to 1:1? Maybe, but maybe at that point the Dow is not 37,000, it may be half of that. Okay, so if you say it goes back to 2:1 and the Dow stays where it is, that’s still close to US$19,000 gold. And if the Dow goes back down to 20,000 and it goes to 1:1, you’re still looking at US$20,000 gold,” he commented.
Lassonde noted that the gap between the last two times for gold to reach parity with the Dow was 46 years, which he thinks would be a reasonable timeframe again — it could then occur in 2026 or 2027. On a more immediate timeline, he said the gold price could easily reach US$3,200 within the next 12 months.
He's also predicting that the gold-silver ratio will go to 70:1, taking silver to US$40 over the next 18 months.
Though Lassonde’s predictions may seem high, he wasn’t alone on the panel. Pointing to previous shifts from bear to bull markets, Oliver suggested a seven to eightfold price movement isn't out of line, which would lead to US$8,000 gold. He also suggested that silver could potentially rise to above US$200 in those circumstances.
Gromen anticipates similar gains, calling for a near-term gold price of US$3,000. He thinks it will move quickly and will rise more significantly in the longer term, basing his call on the gold price as a percent of US foreign-held treasuries.
From 1970 to 1989, the percentage was never less than 20 and averaged 40 percent; however, when the global economy was concerned about the US dollar in the late 1970s, it grew to 135 percent. Following the collapse of the Soviet Union, it declined to 5 percent and today it’s at 7 percent. Gromen said the low ratio, along with the debt crisis, suggests a three time price move to get to the historical low of 20 percent and six times to 40 percent.
“US$7,500 on the low end, and in a real dollar crisis you could go 100 percent, right? So you’d have to go up 10 times, 15 times," he explained, adding that his base case is US$7,000 to US$10,000 at the end of the cycle.
For his part, Naylor-Leyland opted not to provide a price prediction for gold, instead suggesting it is more about what happens with the US dollar and treasuries, and that gold is more useful when it comes to measuring the strength of local currencies. However, he did note that he could see pullbacks in the next 12 months.
When it comes to silver, Naylor-Leyland said he sees a narrowing gap in the gold-silver ratio. He predicts it will drop below 70:1, allowing the silver price to climb above the US$30 level.
Investor takeaway
While gold price predictions of US$7,500, US$10,000 or even US$20,000 might seem like wild theories, it's important to recognize that they are coming from respected industry veterans.
When asked for his opinion, Sprott said he could see them all playing out. However, he emphasized that investors can make money without gold making the incredible gains suggested by Lassonde, Oliver and Gromen.
“For people to profit immensely from where we are, I mean if it just went to US$3,000 I’m sure the gold stocks would probably go up 100 percent. So that’s probably more what I’d like to leave on the table — that you don’t need to go to any of those levels to be a very successful investor in the precious metals area,” he said.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Trojan Gold Inc. (CSE: TGII) (the "Company" or "Trojan") is pleased to announce a private placement financing consisting of the sale of up to 10,000,000 units (the "Units") and 5,000,000 flow-through units (the "FT Units") in the capital of the Company at a price of CDN$0.05 per Unit and CDN$0.10 per FT Unit for aggregate gross proceeds of a minimum of CDN$350,000 and a maximum of CDN$1,000,000 (the "Offering").
Each Unit will consist of one common share (a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Unit Warrant"). Each Unit Warrant will entitle the holder thereof to purchase one Common Share in the capital of the Company for a price of CDN$0.08 for a period of 24 months from the date of the closing, subject to acceleration of the expiry date upon the occurrence of certain events.
Each FT Unit will consist of one Common Share that will qualify as a "flow-through share" for the purposes of the Income Tax Act (Canada) and one-half of one common share purchase warrant (each whole common share purchase warrant, a "FTWarrant"). Each FT Warrant will the holder thereof to purchase one Common Share in the capital of the Company for a price of CDN$0.12 for a period of 24 months from the date of the closing.
The Unit Warrants and FT Warrants are subject to acceleration of the 24 month expiry date in the event that the Common Shares have a closing price on the Canadian Securities Exchange of $0.20 or greater for a period of five consecutive trading days at any time after the closing of the Offering and upon the Company giving 30 days' notice of acceleration.
The Units and FT Units will be offered for sale to purchasers resident in Canada (except Quebec) and/or other qualifying jurisdictions pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 Prospectus Exemptions (the "Listed Issuer Financing Exemption"). The securities issued pursuant to the Offering will not be subject to any statutory hold period in accordance with applicable Canadian securities laws.
There is an offering document related to the Listed Issuer Financing Exemption that can be accessed under the Company's profile at www.sedarplus.ca and on the Company's website at https://www.trojangold.com. Prospective investors should read this offering document before subscribing for any securities issued in connection with the Offering.
The proceeds from the FT Units sold pursuant to the Offering will be used by the Company to fulfill the cost requirements relating to the proposed exploration program of the Helmo South Property, as well as to conduct exploration at the Paulpic/Adair-Wascanna Properties and the Watershed Property. The proceeds from the Units sold pursuant to the Offering will be used for general working capital and may also be used to fund further exploration.
Trojan is an active Ontario-based prospect generator junior exploration company, led by a team of professionals having exploration, engineering, project financing and permitting experience. Trojan has accumulated land positions in the Hemlo Gold Camp and Shebandowan Greenstone Belt which in management's view represent mineral exploration potential. For further information on the Company, please visit www.trojangold.com. Trojan is listed on the Canadian Securities Exchange under the symbol (CSE: TGII), on the OTC Pink Market under the ticker symbol TRJGF and on the Frankfurt Exchange under the symbol KC1.
For further information, please contact: Charles J. Elbourne, President & CEO Trojan Gold Inc. 82 Richmond St. East, Suite 401 Toronto, Ontario M5C 1P1 Telephone: 416-315-6490 Email: elbourne007@gmail.com Website: www.trojangold.com
Further Information
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as "may", "will", "expect", "likely", "should", "would", "plan", "anticipate", "intend", "potential", "proposed", "estimate", "believe" or the negative of these terms, or other similar words, expressions, and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussions of strategy. Forward-looking information contained in this press release includes, but is not limited to, statements relating to the terms and timing of the private placement described in this press release and the anticipated uses of the proceeds raised from such private placement.
Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. Such assumptions include, without limitation, that: the Company will receive all necessary approvals required in order to complete the issuance of the securities pursuant to the private placement described in in this press release; that there will be sufficient interest from potential investors in order to complete the private placement on the terms as described herein or at all; and that the Company will have the necessary resources to be able to use the funds raised in the private placement for exploration expenses as anticipated.
However, forward-looking 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 such forward-looking statements. Such risks include, but are not limited to: the potential that the Company will not be able to proceed with the issuance of securities on the terms described in this press release or at all; the risk that the Company will not have the ability to conduct exploration activities on its current mineral properties as anticipated; and other risks (including but not limited to risks faced by issuers in the mining industry generally) as described in the Company's public disclosure record at www.sedarplus.ca.
Accordingly, undue reliance should not be placed on forward-looking statements and the forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained herein are made as at the date hereof and are based on the beliefs, estimates, expectations, and opinions of management on such date. The Company does not undertake any obligation to update publicly or revise any such forward-looking statements or any forward-looking statements contained in any other documents whether as a result of new information, future events or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required under applicable securities law. Readers are cautioned to consider these and other factors, uncertainties, and potential events carefully and not to put undue reliance on forward-looking information.
Montage Gold Corp. ("Montage" or the "Company") (TSXV: MAU) (OTCQX: MAUTF) announces that it will hold its Annual General and Special Meeting (the "Meeting") on Friday, June 7, 2024 . The Notice of Meeting and Management Information Circular relating to the meeting has been mailed to shareholders and has been filed under the Company's profile at www.sedarplus.ca .
The proposed slate of director nominees will consist of six individuals: Ron Hochstein , Richard P. Clark , Anu Dhir, David Field , Alessandro Bitelli and Martino De Ciccio . If elected, Ron Hochstein will be proposed as the Chair of the Board replacing Peter Mitchell who is not standing for re-election. In addition, Sasha Bukacheva and Hugh Stuart will not be standing for re-election as directors. With the successful transition of the previously announced new management team complete, Hugh Stuart , Kevin Ross , and Adam Spencer will be stepping down from their executive positions over the coming weeks.
Ron Hochstein , proposed Chair of the Board commented: "I would like to thank Peter Mitchell for his contributions and leadership during his time as Chair of the Board. I would also like to thank Sasha and Hugh for their contributions to the board during their tenure as directors. I also extend my gratitude to Hugh, Kevin, and Adam for their assistance during this transition phase for the Company as well as their significant contributions to the success of Montage over the years."
Shareholders as of the record date of April 26, 2024 , will be eligible to vote at the Meeting. Shareholders are encouraged to vote by proxy, which must be received by Endeavor Trust by 10:00 a.m. , Vancouver Time on Wednesday, June 5, 2024 .
Neither TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Montage Gold Corp. (TSXV: MAU) is a Canadian-listed company focused on becoming a premier multi-asset African gold producer, with its flagship Koné project, located in Côte d'Ivoire, at the forefront. Based on the Feasibility Study published in 2024, the Koné project ranks as one of the highest quality gold projects in Africa with a long 16-year mine life, low AISC of $998 /oz over its life of mine, and sizeable annual production of +300koz of gold over the first 8 years. Over the course of 2024, the Montage management team will be leveraging their extensive track record in developing projects in Africa to progress the Koné project towards an investment decision, thereby unlocking significant value for all its stakeholders.
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking information and forward-looking statements within the meaning of Canadian securities legislation (collectively, "Forward-looking Statements"). All statements, other than statements of historical fact, constitute Forward-looking Statements. Words such as "will", "intends", "proposed" and "expects" or similar expressions are intended to identify Forward-looking Statements. Forward looking Statements in this press release include statements related to the use of proceeds from the Offering; the final acceptance of the TSX Venture Exchange; the Company's mineral reserve and mineral resource estimates; the timing and amount of future production from the Koné project; expectations with respect AISC of the Koné project; anticipated mine life of the Koné project; and expected recoveries and grades of the Koné project. Forward-looking Statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties inherent in the preparation of mineral reserve and resource estimates and definitive feasibility studies such as the Mineral Reserve Estimate and the UFS, including but not limited to, assumptions underlying the production estimates not being realized, incorrect cost assumptions, unexpected variations in quantity of mineralized material, grade or recovery rates, unexpected changes to geotechnical or hydrogeological considerations, unexpected failures of plant, equipment or processes, unexpected changes to availability of power or the power rates, failure to maintain permits and licenses, higher than expected interest or tax rates, adverse changes in project parameters, unanticipated delays and costs of consulting and accommodating rights of local communities, environmental risks inherent in the Côte d'Ivoire, title risks, including failure to renew concessions, unanticipated commodity price and exchange rate fluctuations, risks relating to COVID-19, delays in or failure to receive access agreements or amended permits, and other risk factors set forth in the Company's 2023 AIF under the heading "Risk Factors". The Company undertakes no obligation to update or revise any Forward-looking Statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Montage to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any Forward-looking Statement. Any Forward-looking Statements contained in this press release are expressly qualified in their entirety by this cautionary statement.
NON-GAAP MEASURES
This press release includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards ("IFRS"), including cash costs and AISC (or "all-in sustaining costs") per payable ounce of gold sold and per tonne processed and mining, processing and operating costs reported on a unit basis. Non-GAAP measures do not have any standardized meaning prescribed under IFRS and, therefore, they may not be comparable to similar measures employed by other companies. The Company discloses "cash costs" and "all-in sustaining costs" and other unit costs because it understands that certain investors use this information to determine the Company's ability to generate earnings and cash flows for use in investing and other activities. The Company believes that conventional measures of performance prepared in accordance with IFRS, do not fully illustrate the ability of mines to generate cash flows. The measures, as determined under IFRS, are not necessarily indicative of operating profit or cash flows from operating activities. The measures cash costs and all-in sustaining costs and unit costs are considered to be key indicators of a project's ability to generate operating earnings and cash flows. Non-GAAP financial measures should not be considered in isolation as a substitute for measures of performance prepared in accordance with IFRS and are not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS. Readers should also refer to our management's discussion and analysis, available under our corporate profile at www.sedarplus.ca for a more detailed discussion of how we calculate such measures.
Impact Minerals Limited (ASX:IPT) (Company) is pleased to advise that it has received firm commitments from sophisticated investors for a strategic placement (Placement) to raise A$3,000,000 (before costs) via the issue of 150,000,000 fully paid ordinary shares (Placement Shares) in the capital of the Company (Shares) at an issue price of A$0.02 per Placement Share. For every three Placement Shares subscribed for, one free-attaching option will be issued with an exercise price of $0.027 per option and an expiry date that is 15 months after the date of issue (Placement Options).
Strategic A$3 million placement mostly supported by major shareholders to be issued under the Company's existing available placement capacity under ASX Listing Rule 7.1.
In addition, funds being received from exercise of listed options (IPTOB) into shares.
Anticipated Research and Development Rebate of $395,000 due shortly.
Major shareholders strongly supported the placement, an endorsement of the Company's future strategic plans.
Impact Minerals’ Managing Director Dr Mike Jones, said, “We are now very well-funded to complete the Pre-Feasibility Study on our unique Lake Hope High Purity Alumina Project located here in Western Australia by the end of this year. We have deliberately placed most of the shares to our major shareholders which is a strong endorsement of our plan to move forward as quickly as possible with Lake Hope and we thank them for their support.
We would also like to thank those new shareholders who have recently exercised our listed IPTOB 2 cent per share options I would like to encourage other holders of IPTOB to consider doing the same before the expiry date of June 2nd. As well as the Lake Hope project we will also be able to progress our Arkun battery and strategic metals project for which we recently received up to $180,000 in co-funding from the WA Governments Exploration Incentive Scheme for drilling of our exciting Caligula copper target”.
The proposed use of funds of the placement funds is as follows:
Notes: The above table is a statement of the Company’s intentions as at the date of this Announcement. As with any budget, the allocation of funds set out in the above table may change depending on a number of factors, including development of new opportunities, market factors and general business and economic conditions. As such, actual expenditure levels may differ significantly from the above estimates.
Evolution Capital and Barclay Pearce Capital acted as the Joint Lead Managers to the Placement (Broker) and will be issued a cumulative total of 15,000,000 options exercisable at A$0.027 each with an expiry date 15 months after the date of issue (Broker Options). The Broker Options will be split equally between the Joint Lead Managers.
In addition to the Broker Options, the Brokers will receive a Management fee of 2% of Proceeds from the Offer and a Selling Fee of 4% of Proceeds from the Offer excluding the Chairman’s List.
The Placement Shares, Placement Options and Broker Options will be issued under the Company’s existing available placement capacity under ASX Listing Rule 7.1. The issue price of the Placement Shares represents a 5.6% discount to the volume weighted average price for the 15 days immediately before 15 May 2024 being $0.0211.
All Placement Shares and Shares issued upon exercise of the Placement Options and Broker Options will rank equally with the Company’s existing Shares on issue.
Provided all the requirements under the ASX Listing Rules have been met, the Company intends to seek quotation of the Placement Options and Broker Options, and to issue the Placement Options and Broker Options under a prospectus.
This article includes content from Impact Minerals, 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.
John Feneck, partner and portfolio manager at Feneck Consulting, shared his thoughts on gold, silver, copper and uranium, outlining his outlook for these commodities and stocks he's currently watching.
Starting with gold, he said he thinks it's proven itself as a safe-haven asset, with more "smart money" now getting involved. At the same time, he sees gold-mining companies starting to put on positive performances.
"We're off to the races in gold producers in terms of doing well at the earnings level, and that gets the attention of big money ... (and) that's what's needed to generate more interest in the space," Feneck said.
In terms of silver, he's encouraged to see it getting close to the crucial US$30 per ounce level after last year's rangebound trading. Moving forward, it's possible US$25 to US$26 may become support instead of resistance.
Precious metals stocks on his radar at the moment include Newmont Mining (TSX:NGT,NYSE:NEM), Dakota Gold (NYSEAMERICAN:DC), Golden Cariboo Resources (CSE:GCC,OTC Pink:GCCFF), PTX Metals (CSE:PTX,OTCQB:PANXF), Guanajuato Silver Company (TSXV:GSVR,OTCQX:GSVRF) and Silver X Mining (TSXV:AGX,OTCQB:AGXPF).
Copper prices have also rising in 2024, and Feneck is looking at small- and mid-cap companies that haven't moved yet. Among those are NevGold (TSXV:NAU,OTCQX:NAUFF) and Vortex Metals (TSXV:VMS,OTCQB:VMSSF).
Moving over to uranium, Feneck remains bullish and is interested in juniors. He mentioned F3 Uranium (TSXV:FUU,OTCQB:FUUFF) and Standard Uranium (TSXV:STND,OTCQB:STTDF) as companies on his list.
Watch the interview above for more from Feneck on the resource sector and the companies he's eyeing.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
ALX Resources (TSXV:AL,FWB:6LLN,OTC:ALXEF) is dedicated to providing shareholders with multiple opportunities for discovery by exploring a portfolio of prospective mineral properties, which include uranium, lithium, nickel–copper–cobalt and gold.
Using the latest technologies, ALX plans and executes well-designed exploration programs and holds over 240,000 hectares of prospective properties in Saskatchewan, Quebec and Ontario, Canada.
Having operations in stable Canadian jurisdictions strategically positions ALX Resources in key exploration areas with strong potential for economic base metals deposits, producing gold mines and the richest uranium deposits in the world. This includes the Firebird nickel (formerly Falcon Nickel) and Flying Vee nickel-copper-cobalt projects, and the Sceptre gold project, all located in Northern Saskatchewan.
ALX is planning a 2024 summer exploration program at its Hydra Lithium Project in the James Bay region of Quebec, a joint venture with Forrestania Resources Ltd., which includes a prospecting and geological mapping program to locate pegmatite bodies in the field as a follow-up to ALX's 2023 exploration activities.
ALX also holds interests in several uranium exploration properties in Northern Saskatchewan, including the Gibbons Creek uranium project comprising eight claims covering 13,864 hectares. The company has completed its 2024 winter drilling program that consisted of five holes totaling 905.4 meters. Four of the five holes have uranium mineralization at or near the unconformity, based upon hand-held scintillometer readings on the drill core, downhole gamma probe results, and visual observation of uranium minerals. Analytical results are pending.
“Walking Mag” survey technique at the Gibbons Creek Uranium Project in 2023
ALX has a 20 percent interest in the Hook-Carter Uranium Project in which Denison Mines (NYSE:DNN) owns 80 percent. Denison has funded approximately $7 million in exploration to date. The property is subject to certain royalties held by underlying vendors. The 2023 Hook-Carter airborne Z-Axis Tipper electromagnetic survey successfully outlined historical conductors present at Hook-Carter and resolved new conductors in deeper terrain that were not identified by previous geophysical surveys.
The company also completed a surface prospecting program in October 2023 at its 100 percent-owned McKenzie Lake uranium project located in the southeastern Athabasca Basin area of northern Saskatchewan.
Along with ALX’s rich portfolio of diverse assets in world-renowned jurisdictions, identifying undervalued and underexplored assets is the company’s strong suit. As early adopters of new methods of exploration, the company embodies innovation with its willingness to utilize new geochemical and geophysical technologies. This includes artificial intelligence recognition methods and other emerging science-focused exploration tools.
ALX has a world-class management team led by chairman and CEO Warren Stanyer who has more than 27 years of experience in the mineral exploration industry, focused mostly on uranium exploration in Saskatchewan.
Company Highlights
Uses the latest technologies to execute well-designed exploration programs in their primary projects located in the stable jurisdictions of Saskatchewan, Quebec and Ontario.
Acts as a prospect generator to explore and develop mineral properties for option.
In October 2019, high grade nickel was located on surface from the company’s first site visit to the Firebird nickel project in Saskatchewan with the additional presence of copper anomalies.
Owns and gold exploration properties within the Red Lake Mining District, a region that has produced over 28 million ounces of gold since mines began production in 1925.
Acquired by staking in 2021 the 100 percent-owned Sabre, McKenzie Lake and Javelin uranium projects in northern Saskatchewan, Canada with no underlying royalties.
ALX Resources recently completed a drilling program at the Gibbons Creek Uranium project in the Northern Athabasca Basin, comprising approximately 905.4 meters, at the site of untested geochemical anomalies.
Acquired the Hydra Lithium Project in a world-class lithium exploration district in the James Bay region of northern Quebec, Canada. The project consists of 306 mineral claims in eight sub-projects totalling 29,262 hectares (72,306 acres).
ALX Resources acquired by staking the 31,808-hectare (78,598 acres) Anchor Lithium Project within the Meguma Terrane of central and western Nova Scotia, Canada.
ALX Resources purchased the Reindeer Lithium project and staked the Crystal Lithium Project in Saskatchewan, each of which ALX believes to be underexplored for lithium-bearing pegmatites in the modern era.
Key Projects
Hydra Lithium Project
ALX Resources owns a 50 percent interest in the Hydra Lithium Project in the James Bay region of Quebec, Canada. The remaining 50 percent interest is owned by Forrestania Resources (ASX:FRS). The project comprises eight sub-projects totaling 29,262 hectares. Hydra’s sub-projects include Volta (4,751 hectares), Echo (5,566 hectares), Nike (2,462 hectares), Sprite (3,437 hectares), Cobra (4,249 hectares), Viper (1,280 hectares), Python East (3,218 hectares) and Python West (4,298 hectares), Hydra is located in a world-class lithium exploration district that hosts several significant lithium-cesium-tantalum (LCT) type pegmatites.
2024 Summer Exploration Program
Planning for 2024 summer exploration at the Hydra lithium project is underway which includes a prospecting and geological mapping program, designed to locate pegmatite bodies in the field as a follow-up to ALX's 2023 exploration activities at Hydra which highlights the following:
Python West: 30 samples collected with sample #F435054 taken from a pegmatite boulder returned 278 parts per million (ppm) lithium, 575 ppm cesium and 865 ppm rubidium. Positive geochemical ratios were calculated and are interpreted as pathfinders for LCT pegmatites: K/Rb (17.1), K/Cs (26) and Nb/Ta (2.1);
Python East: 15 samples collected and sample #F435156 taken from a pegmatite boulder returned 387 ppm lithium, 24.5 ppm cesium and 326 ppm rubidium;
Sprite: 27 samples collected. Two samples collected from granitic and paragneiss outcrops samples returned lithium and rubidium values over 100 ppm;
Volta: 21 samples collected. Biotite crystals were described in one outcrop sample that also showed orange luminescence under ultraviolet light that may suggest a fertile environment for LCT pegmatites. Follow-up in 2024 is planned.
Echo: 1 sample collected. Prospecting in 2023 was impeded by fires, weather conditions and schedule constraints. Follow-up on first-priority targets detected by remote sensing is planned for 2024.
Cobra: 10 samples collected. Follow-up on second-priority targets is planned for 2024.
Nike: 2 samples were collected. Follow-up on second-priority targets is planned for 2024.
Viper: No samples were collected. An airborne reconnaissance survey was carried out. Follow-up on second-priority targets is planned for 2024.
2023 Pegmatite sample from Python West
Gibbons Creek Uranium Project
ALX Resources completed a diamond drilling program in the winter of 2022 in the Northern Athabasca Basin, near Stony Rapids, Saskatchewan. The program comprised three holes, completed for a total of approximately 1,240 meters, atop two previously untested anomalies.
Drill hole GC22-01, along the southwestern portion of the Zinger Conductor, intersected high in the sandstone column, mineral alteration including pyrite, siderite, and bleaching, and low angle to core axis fracture zones that suggest a steep-dipping structure may project to the sub-Athabasca unconformity at an approximate downhole depth of 345 meters.
Drill hole GC22-02 tested the northeast section of the Zinger trend. It revealed discrete elevated gamma probe peaks that occur between 293.7 and 300.9 meters. Geochemical analysis of the samples collected over these horizons will help to determine the significance of these peaks.
ALX has completed its 2024 winter drilling program at Gibbons Creek which aimed to test for continuity of uranium mineralization first discovered in 1979 by Eldorado Nuclear and ALX in 2015. Five holes totaling 905.4 meters were completed with four of the five holes intersecting uranium mineralization at or near the unconformity. Mineralization found in the 2024 drilling was intersected in two areas located 500 meters apart within a target area that ALX defined in late 2023 through a high-resolution magnetic survey and a soil gas hydrocarbon survey.
Close-up of uranium mineralization in core sample from hole GC24-04 - peak radioactivity (8,662 cps) at 107.87 meters.
Hook Carter Project
The Hook-Carter project consists of eleven claims covering 25,115 hectares in the southwest corner of the Athabasca Basin. The project has excellent potential to host economic uranium deposits. Hook-Carter is interpreted to host the northeastern strike extension of the Patterson Lake Corridor, which hosts Nexgen Energy's Arrow uranium deposit, Fission Uranium's Triple R uranium deposit and Purepoint Uranium’s Spitfire, Hornet and Dragon zones, which are in a joint venture with Cameco Corporation and Orano Canada. Hook-Carter also overlies the interpreted strike extension of the Carter and Derksen corridors, each highly prospective, under-explored corridor in which significant uranium mineralization may exist.
The 2023 ZTEM survey successfully outlined historical conductors at Hook-Carter and resolved new conductors in deeper terrain that were not identified by previous geophysical surveys.
Management Team
Warren Stanyer - Chairman and CEO
Warren Stanyer has over 27 years of experience in the mineral exploration industry, focused mostly on uranium in the Athabasca Basin. Stanyer began his career with Pioneer Metals, a diverse explorer for gold, base metals, and uranium, with properties in New Mexico, British Columbia, Manitoba, and Saskatchewan. After gaining over a decade of experience, Stanyer accepted the role of president and CEO of Northern Continental Resources, a junior exploration company focused on uranium in the Athabasca Basin. He steered the successful sale of the company in 2009 to Hathor Exploration, in competition with Denison Mines.
Stanyer became chairman of Guyana Frontier Mining in December 2010; and, during his tenure, served as president and CEO. As a director of Alpha Minerals, a predecessor company of ALX, and following the Patterson Lake uranium discovery in 2012, Stanyer served as chairman of the special committee in 2013 during the acquisition of the company by Fission Uranium, subsequently serving as a director of Fission until 2014. Stanyer serves as president, CEO, and director of Nevada Sunrise Gold, a junior exploration company focused on gold, copper, cobalt, and lithium in Nevada. He is also a director of New Moon Minerals, a private mineral exploration company.
Patrick Groening - CFO and Director
Patrick Groening’s previous roles with public companies include more than nine combined years serving as CFO for both Strathmore Minerals and Fission Energy. He filled the same role for Jalna Minerals, Sernova, and Papuan Precious Metals, and performed dual roles of CFO and corporate secretary For Wolf Capital and Pacific Asia China Energy.
David Miller - Director
David Miller is a businessman, professional economic geologist, and has served as an elected member of the Wyoming Legislature. Miller was CEO of Strathmore Minerals prior to its merger with Energy Fuels in 2013.
Jean-Jacques Gautrot - Director
Jean-Jacques Gautrot of Paris, France, is a former chairman of the World Nuclear Association and serves as an ambassador of the WNA to promote the nuclear industry worldwide. He has had a productive career in the nuclear energy business.
Howard Haugom - Director
Howard Haugom is co-owner of Quilts Etc., a national linen retail chain and a partner at Burkehill Capital Corp., a Vancouver-based private equity firm. He has taught at Simon Fraser University in B.C., worked for both the private and public sectors as an economist, and has been a consultant to the gold resource sector.
Charles Roy - Chairman, Technical Committee
Charles Roy brings a rare depth of experience and success in uranium exploration from a professional career largely with the world’s leading uranium mining company, Cameco Corporation. Roy was involved in the discovery of seven uranium deposits.
Jody Dahrouge, - Technical Advisor
Jody Dahrouge is a professional geologist with 25 years of experience in Canada and internationally, and has a successful background in uranium and lithium exploration and project generation within the Athabasca Basin of Saskatchewan, Quebec, and the USA.
R. Sierd Eriks - Technical Advisor
R. Sierd Eriks has worked in mineral exploration for over thirty-five years with a focus on uranium exploration for over the past two decades. Eriks acted as president and chief geologist for ALX until he retired from full-time work in 2022.
Dave Quirt - Technical Advisor
Dave Quirt is a consulting geoscientist residing in Saskatchewan with 45 years of geological, mineral exploration, and research and development experience, both in the consulting sector and within the mineral exploration industry.
Ken Wasyliuk - Technical Advisor
Mr. Wasyliuk has worked in mineral exploration for over 30 years with a focus on geochemistry and clay mineralogy in uranium exploration. During his career, Mr. Wasyliuk became an expert on geochemical and clay alteration patterns associated with uranium deposits in the Athabasca Basin.
Dr. Larry Hulbert - Technical Advisor
Dr. Hulbert is a Registered Professional Geoscientist in Saskatchewan and Ontario. From 1984 to 2007, Larry worked as a Research Scientist for the Geological Survey of Canada where he analyzed most of the significant nickel-copper-PGE deposits in Canada, including those at ALX’s Firebird Nickel Project.
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Figure 1: Long Section of the Never Never Gold Deposit, Pepper, Four Pillars and West Winds Gold Prospects looking East. New high-grade intercept assays highlighted in yellow callout boxes. Note the proposed exploration drill drive design in the foreground (western wall of Gilbey’s Open Pit).
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Notes: The above table is a statement of the Company’s intentions as at the date of this Announcement. As with any budget, the allocation of funds set out in the above table may change depending on a number of factors, including development of new opportunities, market factors and general business and economic conditions. As such, actual expenditure levels may differ significantly from the above estimates.
