The sale of a barge by Tyranna Resources (ASX:TYX) has brought the company’s market capitalisation to about A$6.1 million and funded exploration at the highly prospective Jumbuck gold project in South Australia.
Tyranna shares jumped 15.8% on the news yesterday to their current level of $0.022.
Tyranna formed from a merger of Trafford Resources and Ironclad Mining earlier this year after iron pricing weakness resulted in Irconclad’s Wilcherry Hill iron project (also in SA) being put on hold.
As a result, the rescue merger is benefiting from the combination of Trafford’s prospective project holdings and the cash flow potential related to Ironclad’s saleable assets.
The US$2 million (A2.85 million) barge sale sets up more exploration at Jumbuck, which has already delivered drilling results grading as high as 25.2 grams per tonne gold across a 1-metre section of a broader 33-metre intersection grading 1.8g/t gold from 24 metres.
Other standout intercepts at the project returned 15 at 4.30g/t from 47 metres including 8 metres at 6.21g/t and 1 metre at 22.40g/t.
The project formerly the Western Gawler covers about 8,000 square kilometres surrounding the 1 million ounce producing Kingsgate Consolidated Limited’s (ASX”KCN) Challenger gold mine.
Challenger has produced gold at an average grade of 6g/t since 2002.
Jumbuck’s Golf Bore prospect (which represents part of a JV with Kingsgate) will be a focus of upcoming drilling, which is expected to extend the shallow mineralisation with a view to early, low-cost production.
Tyranna will continue to hold Wilcherry Hill with an aim to quickly reanimating the project in the event of an iron price turnaround.
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