King River Resources - Drilling Progress and Financial Update - 16 July 2024
KRR (KRR) Share Update July 2024 Tuesday 16th
King River Resources Announces Drilling Progress at Tennant Creek Projects
King River Resources Ltd (ASX: KRR) has provided an update on its drilling activities at the Tennant Creek Gold-Copper Projects and shared its financial status as of 30 June 2024.
Instant Summary:
- Drilling commenced at Langrenus and Kurundi Prospects.
- 1,824m drilled in 11 holes at Langrenus; assays pending.
- RC drilling planned at Kurundi with 1,600m in 20 holes.
- KRR's cash position at 15 July 2024 is $5,149,124.
- Received $1.6 million from Tivan Limited for Speewah Project sale.
Drilling Activities
During the June 2024 quarter, King River Resources Ltd (ASX: KRR) commenced drilling for Iron Oxide Copper-Gold (IOCG) targets at the Langrenus Prospect and gold targets at the Kurundi Prospect within the Tennant East Project area. This drilling is part of KRR’s larger $2M drill budget, following up on targets generated from the 2023 geophysics programme.
At Langrenus, KRR completed its planned RC drilling with a total of 11 holes for 1,824m. Approximately 1300 drill samples have been delivered to the laboratory, and assay results are pending. Drilling tested two main areas along the Mauretania-Hopeful Star trend, with significant quartz hematite zones intersected in Area 1. Further work is planned to test the orientation and extents of these new zones.
Drilling at Target Area 2 intersected broad zones of hematite alteration and veining, including a quartz magnetite vein. These structures are associated with the main gravity trend, and further targeting will be done based on assay results.
Kurundi Drilling Plans
RC drilling is planned at the Kurundi Project to test new geophysical results from 2023 surveys and to follow up on previous high-grade drill results. The planned drilling includes 1,600m in 20 holes, targeting extensions to the main gold zone and other sub-parallel structures. Recent surveys have identified several geophysical trends related to the main mineralised zone, enabling more precise targeting.
Financial Update
As of 30 June 2024, KRR's cash position was $3,935,830. On 24 May 2024, the company received a Research & Development tax refund of $361,360. Subsequent to the quarter end, on 8 July 2024, KRR received a $1.6 million cash payment from Tivan Limited towards the sale of the Speewah Project, bringing the company’s cash position to $5,149,124 as of 15 July 2024.
The company holds 100 million ordinary fully paid shares in Tivan Limited valued at $7.3 million as of 30 June 2024, subject to voluntary escrow until 17 February 2025. Additionally, KRR has $4 million cash receivable from Tivan Limited for the sale of the Speewah Project, with further payments contingent on share value conditions.
The drilling progress at Langrenus and Kurundi is promising, with significant intersections that could potentially enhance the company's resource base. The financial update indicates a strong cash position, bolstered by recent payments and tax refunds. This stability may positively influence investor sentiment and KRR's stock price.
Investor Reaction:
Analysts have noted the positive drilling results and strong financial position. Investors are cautiously optimistic, awaiting assay results from Langrenus and further drilling updates from Kurundi.
Conclusion:
Investors should keep an eye on the pending assay results and the upcoming drilling activities at Kurundi. King River Resources' strategic focus on expanding its resource base and maintaining a strong financial position will be crucial in driving future growth.