Simon Lawson at Spartan (ASX:SPR) knows how these things work.
On Monday, before heading off on an Eastern states roadshow with the Resources Rising Stars Lunch Series, which finishes up at Melbourne’s Sofitel today, he announced more impressive drill results from the Never Never discovery at Spartan’s Dalgaranga project in the Murchison.
As Euroz put it in a research note, the latest results went a long way to confirming its belief that Dalgaranga could become a generational asset.
The drill results confirmed high-grade depth extensions to the near 1 million ounce Never Never discovery.
“It may be a geologist’s dream to find a deposit like this, but it is a mining engineer’s dream to mine it,” Euroz said.
“Spartan continues to find high-grade gold within 600m of the (mothballed) 3Mtpa Dalgaranga mill. With minimal capital required to get the operation back into production($70-$100m), high grade feed (+2.2g/t) and visibility, this could be an asset capable of supporting a 10+ year mine life.
“We believe Spartan is a compelling opportunity for gold investors. This is the highest grade gold story since Bellevue Gold for a fraction of the price.”
High praise indeed and accompanied by an increase in the broker’s target price on the stock from 70c to 90c a share. It was a 60.5c stock at Thursday’s close, up by 4.3% on the day.
Tantalisingly, the deeper drilling at Never Never suggests a broadening of the shoot at depth and a possibility of a link up with a shoot being defined below the existing Gilbeys open-cut.
If that were to prove up, the current estimates of Never Never potentially being a 1.5 million ounce find could change to discussion around the potential for 3-6 million ounces. Still early days but one to keep to an eye on….”
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