This was posted in the Intersuisse Morning Notes report for their clients today....
Good report by a leading broker.
Wedgetail Exploration (WTE) Golden Gate Drilling Results Speculative Buy $0.05
Nullagine Gold Project Feasibility Study Progressing Recent RC drilling at WTE's Golden Gate project has returned high grade gold intersections from the C and D reefs. Intersections include 15 metres at 6.76 g/t gold and 17 metres at 13.5 g/t gold.
Golden Gate is located 40 km to the north east of WTE's Golden Eagle project which the company is aiming to bring into production by November 2006.
Golden Eagle and Golden Gate form a major part of WTE's Nullagine Gold Project in the east Pilbara of WA. The company has purchased the Bullfinch treatment plant from Sons of Gwalia and, subject to the outcome of bankable feasibility study that is currently in progress, intends to commence gold production at an initial rate of 70,000 ounces per year.
Cash costs for a carbon in leach operation have been estimated at $360 per ounce.
Resources at the Nullagine project total 14 million tonnes averaging 1.97 g/t gold and containing 886,000 ounces of gold. In addition there is the potential to heap leach substantail tonnages of low grade material.
In addition to the exploration success at Golden Gate, preliminary RAB drilling at Billjim North has returned intercepts of 16 metres at 5.78 g/t gold and 12 metres at 5.77 g/t gold. Billjim North is located 2 km to the west of Golden Gate.
Impact WTE is in the final stages of a bankable feasibility study on the Nullagine Gold Project. The economics appear robust and the company is continuing to achieve exploration success. The potential for a heap leaching project to supplement a proposed 70,000 ounce per year CIL treatment operation is attractive. We recommend WTE as a Speculative Buy.
WTE Price at posting:
0.0¢ Sentiment: None Disclosure: Held
