Spartan Resources Hits Record Gold Intercept at Dalgaranga Gold Project
SPR (SPR) Share Update August 2024 Tuesday 27th
Spartan Resources Reports Record Gold Intercept at Dalgaranga
Spartan Resources Limited (ASX: SPR) has announced a significant milestone in its exploration activities at the Dalgaranga Gold Project, with a record-breaking gold intercept at the Pepper Gold Deposit.
Instant Summary:
- 27.01m @ 39.15g/t gold from 606.74m down-hole (DGDH074), including 5.11m @ 121.35g/t and 7.5m @ 50.72g/t gold.
- 19.57m @ 22.06g/t gold from 578.00m down-hole (DGDH074-W1), including 4.70m @ 59.05g/t Au and 4.64m @ 27.11g/t Au.
- New assays confirm consistent high-grade gold mineralization between initial discovery and definition intercepts.
- Pepper Gold Deposit now stands at 438koz @ 7.66g/t gold (100% Inferred Classification).
Exploration Update
Spartan Resources has reported outstanding results from its recent diamond drilling campaign at the Pepper Gold Deposit, part of the Dalgaranga Gold Project in Western Australia. The standout result was a 27.01-meter intercept grading 39.15 grams per tonne (g/t) of gold, including higher-grade sections of 5.11 meters at 121.35g/t and 7.5 meters at 50.72g/t. This intercept, from drill hole DGDH074, represents the highest-grade hit to date for the project.
Another significant result was from drill hole DGDH074-W1, which returned 19.57 meters at 22.06g/t gold, including 4.70 meters at 59.05g/t and 4.64 meters at 27.11g/t. These results are part of a resource upgrade drilling program aimed at converting existing Inferred Resources to higher-confidence Indicated Resources.
Resource Growth
The new assays confirm very consistent high-grade gold mineralization between the initial discovery and definition intercepts used in the July 2024 Inferred Mineral Resource Estimate (2407 MRE). The Pepper Gold Deposit currently stands at 438,000 ounces at 7.66g/t gold, all classified as Inferred Resources.
Spartan's Interim Executive Chair, Simon Lawson, highlighted the rapid progress made since the discovery of the Never Never Gold Deposit in mid-2022. The Never Never resource has grown to almost 1.5 million ounces at 8.07g/t gold, with 76% in the higher confidence Indicated Classification. The discovery of the Pepper Gold Deposit in April 2024 has added another 438,000 ounces to the company's resource base.
Future Plans
Spartan is focused on converting Inferred ounces at Pepper to Indicated Resources, with two dedicated diamond drill rigs currently in operation. The goal is to delineate additional higher-confidence ounces for conversion to Ore Reserves, supporting the company's pre-feasibility study (PFS) and final investment decision (FID) targets. The high-grade ounces at Pepper are expected to supplement those defined at Never Never, further strengthening Spartan's goal of establishing a long-life, sustainable, and profitable mine plan for Dalgaranga.
The record-breaking intercepts at the Pepper Gold Deposit are likely to have a positive impact on Spartan Resources' stock price. The consistent high-grade results enhance the project's attractiveness and could lead to an increase in the company's market valuation. The conversion of Inferred Resources to Indicated Resources will also provide greater confidence to investors regarding the project's potential.
Investor Reaction:
Analysts are expected to react positively to the news, given the significant grades and widths of the intercepts. The rapid progress in resource development and the potential for further resource growth at the Dalgaranga Gold Project will likely be viewed favorably by the market.
Conclusion:
Investors should keep a close eye on Spartan Resources as the company continues its exploration and resource development activities at the Dalgaranga Gold Project. The recent results from the Pepper Gold Deposit underscore the project's potential and the company's ability to deliver high-grade gold resources. Investors are encouraged to monitor future updates and consider the long-term growth prospects of Spartan Resources.