Short Term Trading Week Starting: 20 November, page-94

STTCOMP ENT, FA Long
Enterprise Metals Limited
Market Cap – $8.3M
SOI – 318M
Cash and cash equivalents - $177k (1/9/17)
Total Cash and liquid securities - $1269k (1/9/17)

ENT holds five major projects currently, as follows:

1. DOOLGUNNA PROJECT (ENT 100%, Sandfire Resources NL has right to earn 75%) – Cu
2. FRASER RANGE PROJECT (JV AON.ASX) – Cu/Ni/Au
3. DARLOT PROJECT (minimal progress) - Au/Cu/Zn
4. YALGOO PROJECTS (New)
5. MURCHISON PROJECT (New) – Au/Cu/Zn

Out of the above five projects, MURCHISON is the newest and most prospective one.

“This project covers  90km2 of Archaean greenstones prospective for orogenic gold and volcanogenic massive sulphide (“VMS”) copper-zinc mineralization, and includes over 11km of extensions of the Wattagee and Emily Well VMS mineralised horizons, and strike extensions of the gold mineralised Cuddingwarra, Mt Magnet and Emily Shear Zones. ENT considers the tenements can be quickly and effectively tested using modern airborne geophysics, in combination with modern advanced geochemical tools utilizing historical drill spoil from predominantly broad spaced historical gold exploration programs.”




Nearby Gold Resources and Local Geology

Following is a map showing three basic geological features that appear within Meekatharra area, covering a number of existing gold projects.


Appearance of common geological features across existing gold mines and ENT tenements warrants a detailed stratigraphic comparison of these sites. Following figure shows a detailed graphical representation of stratigraphy and age (in million years, on Y-axis) of the relevant features. Please note that I have ignored resources less than 1Moz in this comparison. I also have relied on resource estimation figures mentioned in the ENT announcements, without further verification.


As illustrated in the above graphs, ENT’s Murchison tenements feature similar geology to Big Well (5.3Moz), Day Dawn (2.6Moz), Cuddingwara (1.3Moz) and Reedys (1.6Moz). Notably, ENT tenements also are substantially larger than all the above resources, in terms size of land, whilst presenting right geology on at least 70% of their land.

I have personally gone a further step forward by analysing the stratigraphy at the next detailed level, however, I find it is not necessary to go that level at this early stage of exploration (as a holder), hence not presented in detailed in this post. For the ones interested, a few key points are presented below:

• Source of gold could be either Polelle Group (younger) or Norie Group (older) or both.
• Gold could also be present in Glen Group members, such as Wattagee Formation, in the north westerly areas (where we have the largest resources)
• Within the areas that do not show exposed Norie Group layers (in the north westerly areas), it is possible that they underlie Polelle Group, including Murrouli Basalt.

About the Neighbours…

West Gold (WGX) – WGX is a $600M+ gold producing giant in the area. Their Murchison Project includes all big mines in the surrounding, including Meekatharra (4.0Moz), Big Bell (5.3), Cuddingwara (1.3), Day Dawn (2.6), Reedys (1.6) , and Caledonian (1.0).

Musgrave Minerals Ltd (MGV) – MGV possesses Break of Day and Lena prospects containing indicated and inferred resource of 441koz (original estimated 350koz). They do not hold any other significant projects and currently sit around $17M market cap.

Thundellara (THX) – THX currently sits at $20M market cap after its recent spike due to visible gold discovery at Crown Prince. Their tenement mostly consists of Greensleeves Formation, which also appears in the ENT tenements to a greater degree.

OK, now back to ENT…

Below is the time line of the recent events along with the price action.

Now that the share purchase plan has been announced, which will be done at a price to be determined, equal to 15% discount the 5 days VWAP on 12th December. It is 3 weeks from now and I would expect some news flow from the company to raise the bar by the time this SPP is done.

Price target for the short term is from 3.8c to 4.2c, as explained in the technical part of this tip.

All IMHO. DYOR & GLTA