Join our daily newsletter At The Bell to receive exclusive market insights
Spartan Resources Ltd (ASX:SPR) has updated its mineral resource estimate for the Dalgaranga Gold Project in Western Australia, registering a 47% rise in ounces and 91% in grade, with the new amount sitting at 16.1 million tonnes at 4.79 grams per tonne of gold for 2,482,200 ounces.
And the market has responded with enthusiasm, sending shares in the company – which will be represented at the upcoming Diggers & Dealers SuperPITch event in Kalgoorlie – up more than 20% since the market opened, trading at $1.20 by 11:58 AEDT.
Spartan’s estimate for Dalgaranga has been chiefly built around the Never Never and Pepper deposits – which were also the source of the project’s overall increase, with Never Never itself having grown, and through the inclusion of Pepper, which was discovered earlier this year.
Never Never was reported at 5.72 million tonnes at 8.07 grams per tonne for 1,485,200 ounces, while Pepper comprised 1.78 million tonnes at 7.66 grams per tonne for 438,100 ounces respectively.
Other underground ore was also included in the MRE, reported at 8.63 million tonnes at 2.01 grams per tonne for 558,900 ounces of gold.
Managing Director and CEO Simon Lawson said the update was a pivotal moment for Spartan.
“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.
“Importantly, we have created a highly investable gold mining and development company which has established a reputation for consistently delivering value to our shareholders since our recapitalisation in February 2023.
“Since its discovery in mid-2022, the high-grade Never Never Gold Deposit has consistently delivered some of the most eye-catching drill intercepts seen in the Australian gold sector in many years.”
He added that this MRE cemented Never Never as an exceptional deposit of high-grade gold.
“This is an incredible outcome only 2 years from discovery and the direct result of a consistent high-grade drill focus, a highly effective drill strategy and the team’s extensive
experience interpreting, modelling and estimating high-grade gold resources,” he said.
This resource is set to underpin Spartan’s maiden underground ore reserve, which is currently underway and will be delivered in the second half of 2024.
