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Spartan Resources shares on the charge after spruiking Dalgaranga upgrade

Simone GroganThe West Australian


Spartan Resources managing director and chief executive Simon Lawson at the Dalgaranga gold project in WA's Murchison region. Credit: Trevor Collens/RegionalHUB

Shares in gold developer Spartan Resources were on the charge after unveiling a substantial mineral resource upgrade for its Dalgaranga projects in the Murchison.

The Simon Lawson-led junior — formerly known as Gascoyne Resources — told the market on Tuesday its total resource inventory for Dalgaranga had lifted 47 per cent to 16.1 million tonnes at 4.79 grams per tonne gold for 2.48 million ounces.
The bulk of the resource at this stage in the indicated and inferred categories, and locked up in the higher grade Never Never deposit, where Spartan has been engaged in an aggressive drilling campaign.


The drilling has also yielded a 91 per cent increase in the overall grade at the Dalgaranga projects, the new resource update said.
News of the upgrade was enough to send Spartan shares up more than 24 per cent during afternoon trade to $1.24. Spartan was trading at about 51¢ at the start of the calendar year.
The meteoric rise has ballooned Spartan’s market capitalisation to more than $1.3 billion.

Mr Lawson said today’s resource upgrade was a “pivotal moment” for the company.
“The Spartan team has taken the pieces of a struggling low-grade open-pit gold miner and rebuilt it as a highly successful high-grade exploration, discovery and development machine,” he said.
“This MRE update firmly cements its (Never Never’s) position as an exceptional high-grade deposit.”
Mid-tier Ramelius Resources recently snapped up a 17.94 per cent stake in Spartan, but the Mark Zeptner-led miner said in late June it had “no current intention to acquire control or make a takeover offer for Spartan”. That was also subject to the “actions of Spartan or any third party”.

Perth broker Euroz Hartleys said in a brief note that the upgrade had “surpassed expectations” and “cemented” Dalgaranga as a “world-class gold asset.”

Perenti subsidiary Barminco has been engaged to deliver more underground work at Dalgaranga for Spartan under a new contract announced on Monday.