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- Comet Resources (CRL) has released a company update roughly one week after it acquired 50 per cent of the Santa Teresa Gold Project in Mexico
- Historically, drilling intersected high-grade mineralisation grading up to a staggering 958 grams per tonne gold
- The project has a non-JORC inferred mineral resource of 64,000 ounces at an average grade of 8.7 grams per tonne however Comet is preparing to release a maiden JORC resource
- Comet will spend the next few months conducting field exploration and drilling at the Santa Teresa Project
- Additionally, Comet will conduct exploration at its Barraba Copper Project in a region that is historically prospective for precious metals
- With two highly prospective projects under its belt, Comet Resources is expecting an exciting few months ahead
- Despite the positive update, company shares have dipped 4.17 per cent in the red to trade for 2.3 cents
Comet Resources (CRL) has released a company update roughly one week after it acquired 50 per cent of the Santa Teresa Gold Project in Mexico.
Santa Teresa
Santa Teresa is considered a high-grade mesothermal lode gold deposit with a significant upside for resource growth.
Historically, drilling intersected high-grade mineralisation grading up to a staggering 958g/t over one metre. Further outstanding assays include more than 30g/t gold.
The project has a non-JORC inferred mineral resource of 64,000 ounces at an average grade of 8.7g/t.
Significantly, Mexico is the world’s largest producer of silver, the eight largest gold producer and the ninth largest copper producer. These statuses have been built from a 500-year mining industry.
The acquisition was initiated in June when Comet signed a binding heads of agreement with El Alamo Resources.
While its current ownership stands at 50 per cent, the company does have an option to own 100 per cent of the project within two years by making a decision to mine.
The Santa Teresa Project also comes with a US$20 million (roughly A$27.2 million) streaming facility as part of a non-binding term sheet with Raptor Capital International. Comet will receive an initial US$6 million (roughly A$8.1 million).
The company is in the final stages of securing these funds which will support development activities at the project.
Comet plans to conduct field exploration activities at the under-explored project ahead of planned drilling to commence in the final quarter of this year. Comet is also working towards a maiden JORC-compliant resource for the project which is planned to be revised early next year.
Barraba Copper Project
Comet Resources has also shed some light on upcoming exploration plans at its Barraba Copper Project in New South Wales.
The project incorporates the historical Gulf Creek Copper Mine where average grades of five per cent were reported. This region is known to host volcanogenic massive sulphide (VMS) style mineralisation containing copper, zinc, lead and precious metals
Currently, Comet is planning drill holes to intercept existing lodes below the historical workings.
Over the next few months, Comet will conduct drilling, geophysics and logging and will also complete an initial resource for the Barraba Copper Project.
With two highly prospective projects under its belt, Comet Resources is expecting an exciting few months ahead.
Despite the positive update, company shares have dipped 4.17 per cent in the red to trade for 2.3 cents at 1:08 pm AEST.
