Underground Study Opens Up High-Grade Potential Below Bombora Open Pit

Breaker released a positive underground mining study of the Tura lode post-quarter. This is an important milestone and a fantastic result for Breaker as it starts to unveil the economic potential of a vast array of primary lodes beneath a very large open pit Resource that extends over a 3km distance.

Highlights

Lake Roe Gold Project

• A study of the underground mining potential was completed on the Tura lode, one of many high-grade lodes below the 824,000oz open pit Resource at the 1.5Moz Bombora deposit
• The Study identified potential for mining 664,000t @ 4.4g/t for 93Koz over a two-year period at an estimated production cost of approximately A$1,100/oz (ASX Release 31 July 2022)
• As a result of the Study, further underground studies are planned on other high-grade lodes, the extent of which is expanding with ongoing drilling
• This Study demonstrates the potential to complement open pit production with expanding amounts of high-grade underground feed
• Three diamond rigs are now running continuously with a focus on increasing the Indicated component of the underground Resource to assist planned mining studies

Manna Lithium Project (20% free-carried interest to completion of BFS)

• Large program underway to expand 9.9Mt @ 1.14% Li₂O Mineral Resource (20,0000m RC & 6,000m)
• Resource update expected in Q4 2022
• Early intersections of 10m @ 1.21% Li₂O from 50m & 12m @ 1.71% Li₂O from 75m; open in all directions with several mineralised trends extending over a 5km x 1.5km area

Ularring Gold Gold-Copper & Nickel-PGE Project

• Breaker’s maiden drilling planned to commence Q3 2022; Regulatory access imminent

Corporate

• Well-funded with $22.3M in cash and investments comprising $11.7m in cash (30 June) and $10.6m in ASX-listed shares held in Global Lithium Resources Ltd (29 July 2022)

Overview

Breaker’s objectives for the remainder of FY2022 are to establish a robust standalone open pit and underground mining option, and to keep expanding the mining option while upgrading and growing the Resource.

The underground mining study of the Tura lode only covers one of many known primary lodes, albeit the most advanced by drilling, but it provides a small snippet of the excellent potential for longer life sustainable underground mining of the many other primary lodes beneath the Bombora deposit.

Given the positive underground mining study, further underground mining studies are now planned on the many other lodes. These primary lodes have only become apparent over the last 18-months, and there is strong potential for further growth driven by the drill bit.

The previous April 2022 open pit mining study demonstrated the potential for a large open pit with strong early free cash flow. Importantly, we now have the potential to complement this with expanding amounts of high-grade underground feed when the production cost of underground mining is less than that in an open pit. This sets the scene for a significant standalone operation that we can keep growing with further drilling.

Three diamond rigs are now running continuously following the recruitment of four new geologists over the last two months to accelerate the drilling. The priority of the drilling is to upgrade the Indicated component of the underground Resource, as well as ongoing growth.

The delay in receiving assay results for recent drilling has been frustrating, but the assay laboratory has accelerated steps to clear the current backlog from several diamond drill holes, and a good progression of news flow from this drilling is expected.
Free-carried lithium interests situated within the Lake Roe project have the potential to fund a large part of the capital expenditure expected for a standalone development.

The Ularring Project, in the emerging SW Yilgarn mineral province, presents opportunity for a significant gold-copper and/or nickel-PGE discovery, with initial drilling is expected to start in Q3 2022.

Development Activities

Breaker is an emerging gold producer and the key attributes of the Lake Roe Project are its scale and high-grade mining optionality.

Breaker has recruited a number of experienced mining professionals to transition the project to the development phase, including Chief Operating Officer, Sam Smith, and Chief Financial Officer, Lisa Wynne. As a result, steps to accelerate permitting, native title and other stakeholder engagement are also underway to position the Company for development.

Click here for the full ASX Release

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