Siren Gold Limited's Quarterly Report: Drilling Success and Strategic Sale
SNG (SNG) Share Update July 2024 Monday 29th
Siren Gold Limited Announces Sale of Reefton Project and Drilling Success
Siren Gold Limited (ASX: SNG) has released its quarterly report for the period ending 30 June 2024, highlighting significant drilling results at the Reefton and Sams Creek projects, and the strategic sale of its Reefton Project to RUA Gold Inc. for A$20 million.
Instant Summary:
- Drilling at Reefton project reveals high-grade gold and antimony mineralization.
- Siren Gold enters agreement to sell Reefton Project to RUA Gold Inc. for A$20 million.
- Siren retains significant interest in Reefton through RUA shares and focuses on Sams Creek Project.
- Sams Creek Project shows promising targets identified through Ionic Leach soil survey.
Drilling Success at Reefton Project
During the quarter, Siren Gold Limited achieved significant drilling success at its Reefton project. Diamond drillhole ACDDH015 intersected both the Bonanza East and Fraternal Shoots, with the Bonanza Shoot assaying 12.4m @ 5.3g/t Au and 14.9% Sb from 69.6m, and the Fraternal Shoot assaying 23.0m @ 4.0g/t Au and 0.22% Sb from 105m. Another drillhole, ACDDH016, intersected 21m of mineralization assaying 22.2m @ 7.3g/t Au and 0.3% Sb.
Sale of Reefton Project
Siren Gold has entered into a definitive agreement with Canadian-listed RUA Gold Inc. for the sale of its Reefton Project. The transaction, valued at A$20 million, includes A$2 million in cash and A$18 million in RUA shares. This sale allows Siren to retain a significant interest in the Reefton project through RUA shares and focus on its Sams Creek Project.
Sams Creek Project Developments
The Sams Creek Project also showed promising developments with an Ionic Leach soil survey identifying several targets. These targets include five dyke and six porphyry targets, with the dyke targets showing an Au-As signature and the porphyry targets displaying an Au-Cu-REE signature. A four-hole drilling program at the Anvil Prospect intersected mineralization similar to the Main Zone prospect.
Financial and Corporate Updates
Financially, Siren Gold reported a closing cash balance of $1.343 million at the end of the quarter. The company also highlighted that post-transaction, it will have cash and investments of over $20 million, representing 10cps per SNG share. The transaction is expected to close in Q4 2024, subject to customary conditions and approvals.
The sale of the Reefton Project for A$20 million is a strategic move that allows Siren Gold to focus on its Sams Creek Project while maintaining a significant interest in Reefton through RUA shares. This transaction is likely to positively impact Siren's stock as it strengthens the company's financial position and allows for focused exploration efforts at Sams Creek.
Investor Reaction:
Analysts are likely to react positively to the sale of the Reefton Project, as it provides Siren Gold with substantial financial resources and a focused exploration strategy. The high-grade drilling results at Reefton and the promising targets at Sams Creek are also expected to bolster investor confidence.
Conclusion:
Investors should keep an eye on the closing of the Reefton Project sale and the ongoing developments at the Sams Creek Project. Siren Gold's strategic moves and successful drilling results position the company for potential growth and increased shareholder value.