OZZ Resources - June 2024 Quarterly Activities Report
OZZ RESOURCES LIMITED (OZZ) Share Update July 2024 Tuesday 23rd
OZZ Resources Announces Positive Scoping Study and Exploration Updates
OZZ Resources Limited (ASX: OZZ) has released its June 2024 Quarterly Activities Report, highlighting significant progress and promising results from its various exploration projects, including Maguires Reward and Leonora.
Instant Summary:
- Maguires Reward scoping study indicates potential for positive cash flow.
- Leonora projects show subtle gold anomalies and potential new targets.
- Rabbit Bore and Peterwangy projects show potential for gold and base metal mineralization.
- Corporate update includes voluntary suspension request pending a proposed transaction.
Maguires Reward Project
The Maguires Reward project, located in the Central Murchison area, covers an area of 200Ha. It is situated within the Archaean Murchison Province, known for its granite-greenstone terrane. A major structural feature, the NE-trending regional shear zone, extends through the project area, making it a prospective site for gold mineralization.
During the previous quarter, OZZ engaged Resolve Mining Solutions to complete a Mining Scoping Study for the Old Prospect North and South deposits. The study, announced on 9 April 2024, included dilution modeling, open pit optimizations, mine and waste dump design, production scheduling, and cost modeling. The results indicate the potential to mine several pits, generating a positive operating cash flow at the current gold price of circa $3,000/oz.
Leonora Projects
The Leonora projects, including Mt Davis and Pepper Tree, have shown promising results from recent exploration activities. The Mt Davis project, located approximately 20km north of Leonora, underwent a surface sampling and litho-geochemistry review. The results, announced on 16 July 2024, revealed subtle gold anomalies, suggesting targets for follow-up investigations and drilling permits.
The Pepper Tree project, located about 25km north of Leonora, also displayed subtle gold anomalies in the Southeast of the soil survey array, supported by elevated arsenic pathfinder litho-geochemistry. Additionally, notable polymetallic anomalies were identified in the Southeast corner of the array.
Rabbit Bore and Peterwangy Projects
The Rabbit Bore project, located in the Central Murchison area, covers an area of 2,390Ha. The geological setting suggests potential for both gold and base metal mineralization. However, no substantial on-ground exploration was undertaken during the quarter.
The Peterwangy project, located in the Mid-West region of Western Australia, comprises two granted exploration licenses covering a total area of 4,440Ha. Planning is underway for exploration activities, including Reverse Circulation (RC) and Rotary Air Blast (RAB) drilling.
Corporate Update
On 19 June 2024, OZZ Resources announced a voluntary suspension of its ordinary securities listed on the Australian Securities Exchange. The suspension is pending an announcement of a proposed transaction under Listing Rule 11.1. The company expects the suspension to be lifted by 20 July 2024.
The positive results from the Maguires Reward scoping study and the identification of new targets in the Leonora projects are likely to boost investor confidence in OZZ Resources. The potential for positive cash flow from the Maguires Reward project, coupled with promising exploration results, could lead to an increase in the company's stock price. However, the voluntary suspension pending a proposed transaction introduces some uncertainty, which investors should monitor closely.
Investor Reaction:
Analysts have responded positively to the scoping study results, noting the potential for significant cash flow generation. Investors are also optimistic about the new exploration targets identified in the Leonora projects. However, there is some cautious sentiment regarding the voluntary suspension and the pending announcement of the proposed transaction.
Conclusion:
Investors should keep an eye on OZZ Resources' upcoming announcements, particularly regarding the proposed transaction. The positive scoping study results and promising exploration updates suggest potential growth opportunities. Staying informed on the company's progress and strategic decisions will be crucial for making informed investment decisions.