Spartan Resources Initiates Juniper Decline Development at Dalgaranga Gold Project
SPR (SPR) Share Update September 2024 Tuesday 17th
Spartan Resources Commences Development of Juniper Decline at Dalgaranga Gold Project
Spartan Resources Limited (ASX: SPR) has announced the commencement of the Juniper Decline, an underground exploration drill drive at its Dalgaranga Gold Project in Western Australia.
Instant Summary:
- Development of the Juniper Decline has started at Dalgaranga Gold Project.
- The project is located in the Murchison region of Western Australia.
- Barminco, a subsidiary of Perenti Limited, is the mining contractor for the project.
- The Juniper Decline will establish multiple underground drill platforms.
- Surface drilling continues with three rigs focusing on the Pepper Resource and a fourth on additional targets.
- Data is being gathered to support the planned Feasibility Study and maiden Ore Reserve.
Project Overview
Spartan Resources Limited (ASX: SPR) has officially started the development of the Juniper Decline at its Dalgaranga Gold Project (DGP), located in the Murchison region of Western Australia. The Juniper Decline is an underground exploration drill drive, which will facilitate cost-effective drilling of the high-grade gold deposits in the area.
The development involves establishing an underground portal entrance from an existing ramp within the previously mined Gilbey’s Open Pit. The first face cuts have been taken to establish twin underground entryways, with Barminco, a wholly-owned subsidiary of Perenti Limited (ASX: PRN), serving as the mining contractor.
Current Activities
Work is progressing with additional ground support being installed around the portals as they advance. Surface drilling is also ongoing, with three drill rigs focusing on in-filling and extending the Pepper Resource, while a fourth rig tests additional targets on the Dalgaranga Mining Lease.
Data is being systematically gathered from the Pepper Resource to confirm both metallurgical and mining study parameters. This data will be included in the planned Feasibility Study and maiden Ore Reserve, which will underpin future restart plans for the project.
Management Comments
Simon Lawson, Interim Executive Chair of Spartan Resources, commented: 'The first cuts have been taken on our journey underground at Dalgaranga. The Underground Exploration Drill Drive, named the Juniper Decline, will establish multiple successive underground drill platforms over the coming months. This will provide Spartan with the ability to further define and rapidly grow our existing high-grade gold prospects and explore for even more of the same style of high-grade gold shoots.'
'The incredible drilling success we have enjoyed in making two significant high-grade discoveries – outlining almost two million ounces of high-grade underground gold in front of our existing processing infrastructure – has all been achieved so far from surface drilling alone. The underground platforms will give us even more opportunity to grow our high-grade gold resources quickly and cost-effectively and bring us closer to a number of potential production scenarios that we are working on.'
The commencement of the Juniper Decline is a significant step for Spartan Resources as it aims to enhance its gold exploration and production capabilities. This development is likely to positively impact the company's stock as it demonstrates progress in their strategic plans. The establishment of underground drill platforms will enable more efficient and cost-effective exploration, which could lead to increased gold resources and potential production scenarios.
Investor Reaction:
Analysts are likely to view this development positively, as it shows Spartan Resources' commitment to advancing its exploration and production efforts. The involvement of a reputable mining contractor like Barminco also adds credibility to the project's execution. Investors may see this as a sign of potential growth in the company's gold resources, which could lead to future increases in stock value.
Conclusion:
Investors should keep an eye on the progress of the Juniper Decline and the results from the ongoing surface drilling. The data gathered will be crucial for the planned Feasibility Study and maiden Ore Reserve, which will provide more clarity on the project's potential. Spartan Resources' strategic advancements at the Dalgaranga Gold Project could offer promising opportunities for investors.