Woomera Mining Limited - June 2024 Quarterly Activities Report
WOOMERA MINING LIMITED (WML) Share Update July 2024 Tuesday 9th
Woomera Mining Limited Reports Mixed Exploration Results in June 2024 Quarterly Activities Report
Woomera Mining Limited (ASX: WML) has released its quarterly activities report for the period ending 30 June 2024, highlighting mixed results from its exploration projects across Western Australia.
Instant Summary:
- Auger infill sampling at Ravensthorpe defined a copper-gold anomaly and two lithium anomalies.
- RC drilling at Wyloo Dome Project found no anomalous gold.
- Multiple project opportunities assessed to enhance the current portfolio.
- Cash on hand at the end of the quarter was $0.611 million.
- Total expenditure on exploration and development activities was $603,000.
Exploration Activities
Woomera Mining Limited completed an infill auger program at the Mt Cattlin Project in Ravensthorpe, Western Australia. The program aimed to follow up on base and precious metals anomalism identified in early 2023. Results from 168 samples revealed a copper-gold anomaly with copper readings up to 964ppm and gold values up to 93ppb. The company plans to assess this anomaly with aircore drilling later this year.
At the Mt Short JV Project, also in Ravensthorpe, Woomera completed a 297-sample infill auger program. Results confirmed two strong lithium anomalies, with multiple samples exceeding 150ppm Li2O. These findings will be further investigated with aircore drilling post-harvest.
Wyloo Dome JV Project
The company conducted a maiden five-hole 1376m RC drilling program at the New Morning prospect. Despite targeting electromagnetic (EM) conductors identified in a 2022 survey, no anomalous gold was detected. Additionally, rock chip samples from other EM anomalies in the area did not return any significant gold values. As a result, Woomera withdrew from its Farm-in and Joint Venture Agreement with Nanjilgardy Resources Pty Ltd.
Other Projects
Woomera plans to drill four EM conductors at the Mt Cornell Prospect within the Mt Venn Project, contingent on the grant of a Mining Entry Permit. No work was conducted at the Musgrave and Labyrinth Projects during the quarter.
Corporate and Financial Overview
Woomera assessed multiple project opportunities to enhance its portfolio, focusing on base metals, uranium, gold, and lithium. The company ended the quarter with $0.611 million in cash and spent $603,000 on exploration and development activities. Payments to related parties during the period totaled $44,000, covering directors' fees, salary, and superannuation.
The mixed exploration results present a varied outlook for Woomera Mining Limited. The identification of copper-gold and lithium anomalies at Ravensthorpe is promising and could potentially enhance the company's portfolio. However, the lack of significant findings at the Wyloo Dome Project and the withdrawal from the joint venture may dampen investor sentiment. The company's financial position, with limited cash reserves, suggests a need for careful management of resources and potential fundraising activities.
Investor Reaction:
Investor reactions are likely to be mixed. While the positive results from Ravensthorpe may generate optimism, the lack of significant findings at Wyloo Dome and the company's limited cash reserves could raise concerns. Analysts may focus on the company's ability to secure additional funding and the potential of its ongoing exploration activities.
Conclusion:
Investors should closely monitor Woomera Mining Limited's future exploration activities and financial management. The company's ability to convert promising anomalies into tangible resources will be crucial for its long-term success. Staying informed about upcoming drilling results and potential fundraising efforts will be key for making informed investment decisions.