Discovery Alaska Limited - Quarterly Activities Report - June 2024
DISCOVERY ALASKA LIMITED (DAF) Share Update July 2024 Tuesday 30th
Discovery Alaska Reports Progress on Vinasale Gold Project Exploration
Discovery Alaska Limited (ASX: DAF), an Australian mineral exploration company, has released its quarterly activities report for June 2024, highlighting significant progress and future plans for its Vinasale Gold Project in Alaska, USA.
Instant Summary:
- Vinasale Gold Project has a historic inferred resource of 22Mt @ 1.53g/t for 1.08Moz gold.
- Indicated resource of 2.29Mt @ 1.84g/t for 135koz gold using a 1g/t cut-off grade.
- The project has been inactive for the past decade but shows potential for resource expansion.
- Exploration program planned to follow up on additional target zones.
- Chulitna Project remains inactive with no exploration works undertaken during the quarter.
- Company maintains cash reserves of ~$0.49 million as of 30 June 2024.
Vinasale Gold Project Overview
The Vinasale Gold Project, located approximately 310 km northwest of Anchorage and 26 km south of McGrath, Alaska, spans roughly 6,500 hectares on lands owned by Doyon, Limited. The project boasts a historic NI 43-101 inferred resource of 22Mt @ 1.53g/t for 1.08Moz gold and an indicated resource of 2.29Mt @ 1.84g/t for 135koz gold, both using a 1g/t cut-off grade.
Despite being inactive for the past decade, the project presents significant exploration upside. Discovery Alaska has conducted a review of the historic resource block model, identifying follow-up target areas from historical geological and geophysical datasets. The company plans to initiate an exploration program as the next phase of work at the project.
Exploration Activities
Initial work involved auditing the existing resource block model against drillhole data to confirm correlation. The audit confirmed that the block model and drilling results are well correlated. From the existing drill and geophysical data, additional targets have been identified that may represent separate zones of mineralization, potentially expanding the current resource in the Central Zone and to the south and east of previous drilling.
These targets are supported by previous drill information and geophysical data, including induced polarization features and resistivity anomalies. Additional features with low resistivity align with larger regional lineaments associated with fault zones and vein systems within the Tintana Province. These areas require further desk-top evaluation and planning for site ground-truthing works.
Chulitna Gold Project
The Chulitna Project, located on State of Alaska public lands, remains inactive with no exploration works undertaken during the quarter. The project area comprises 15.5 km² (24 claims) centered on the Partin Creek gold prospect.
Corporate and Financial Overview
As of 30 June 2024, Discovery Alaska maintains cash reserves of approximately $0.49 million. The company incurred exploration and evaluation costs of approximately $15,000 during the quarter and paid director's fees of approximately $26,000.
The company continues to exercise prudent financial management, ensuring the sustainability of its operations and exploration activities.
The updates on the Vinasale Gold Project suggest potential for resource expansion, which could positively impact Discovery Alaska's stock. The identification of additional target zones and planned exploration activities indicate a proactive approach to unlocking the project's value. However, the company's limited cash reserves may raise concerns about its ability to sustain long-term exploration efforts without additional funding.
Investor Reaction:
Analysts are likely to view the progress on the Vinasale Gold Project positively, given the potential for resource expansion. However, investor sentiment may be tempered by the company's current financial position and the need for further funding to support ongoing exploration activities.
Conclusion:
Investors should closely monitor Discovery Alaska's upcoming exploration activities and financial updates. The company's strategic efforts to expand the Vinasale Gold Project's resources could enhance shareholder value, but prudent financial management and potential funding initiatives will be crucial for sustained progress.