Dreadnought Resources Unveils Promising Gold Intercepts at Mangaroon
DRE (DRE) Share Update September 2024 Monday 30th
Dreadnought Resources Reports High-Grade Gold Intercepts at Mangaroon
Dreadnought Resources Limited (ASX:DRE) has released exciting results from its recent drilling program at the Mangaroon Gold Project in Western Australia, revealing high-grade gold intercepts that could significantly impact the company's future exploration and development plans.
Instant Summary:
- High-grade gold intercepts at Star of Mangaroon: 3m @ 23.7 g/t Au from 58m and 4m @ 27.4 g/t Au from 80m.
- Visible gold logged in 3 diamond holes, with assays expected in October/November 2024.
- Promising assays from Popeye prospect: 3m @ 22.8 g/t Au from 13m.
- Initial Mineral Resource Estimate for Star of Mangaroon expected in November 2024.
Drilling Results at Star of Mangaroon
Dreadnought Resources has completed a series of reverse circulation (RC) and diamond drilling at the Star of Mangaroon, part of their Mangaroon Gold Project. The RC drilling program, consisting of 26 holes totaling 2,862 meters, has returned high-grade gold intercepts, including 3 meters at 23.7 grams per tonne (g/t) gold (Au) from 58 meters, and 4 meters at 27.4 g/t Au from 80 meters.
Additionally, visible gold has been logged in three of the diamond holes drilled as part of the resource definition program. Assays from these diamond drill holes are expected to be received in October and November 2024, which could further confirm the high-grade nature of the deposit.
Promising Assays at Popeye Prospect
The Popeye prospect, located on the same mining lease as the Star of Mangaroon, has also shown promising results. Initial assays from the first pass drilling, which included four RC holes totaling 309 meters, revealed significant intercepts such as 3 meters at 22.8 g/t Au from 13 meters. This discovery at Popeye, which had no prior drilling records, represents a potential new shallow, high-grade open pit opportunity for Dreadnought.
Historical Context and Future Plans
The Star of Mangaroon gold mine, discovered in 1956, is the largest historic gold producer in the Gascoyne region, with significant underground production between 1960 and 1983. Despite its historical significance, the area has seen little exploration since then. Dreadnought's recent drilling aims to confirm and extend existing mineralization along strike and at depth.
Dreadnought's Managing Director, Dean Tuck, emphasized the company's strategy to transform into a self-funded explorer by developing high-grade open pits and outsourcing funding, development, haulage, and processing to third parties. This approach allows Dreadnought to focus on exploration and growth while generating cash flow from its mining activities.
The favorable results from the resource drilling at Star of Mangaroon will be included in the initial open-pit Mineral Resource Estimate expected in November 2024. The company also plans to progress the promising results at Popeye with further drilling and exploration.
The high-grade gold intercepts at Mangaroon are likely to positively impact Dreadnought Resources' stock price as investors react to the potential for significant gold production. The upcoming assays and initial Mineral Resource Estimate could further boost investor confidence and interest in the company's exploration activities.
Investor Reaction:
Analysts are expected to react positively to the high-grade gold intercepts, noting the potential for substantial gold production and the strategic approach to becoming a self-funded explorer. However, the final assays and resource estimates will be crucial in determining the long-term impact on the company's valuation.
Conclusion:
Investors should keep an eye on the upcoming assays and the initial Mineral Resource Estimate for the Star of Mangaroon, expected in November 2024. These results will provide further insights into the project's potential and Dreadnought's strategic plans for growth and exploration.