PriceSensitive

NewPeak Metals (ASX:NPM) slips on latest Cap Burn drilling results

Mining
ASX:NPM      MCAP $2.272M
03 August 2021 13:20 (AEST)
NewPeak Metals (ASX:NPM) - CEO, David Mason

Source: NewPeak Metals

Micro-cap explorer NewPeak Metals (NPM) is trading lower today following the latest round of drilling results from its Cap Burn project in New Zealand.

The results come from drilling in the East Block region of the project, which lies in the Otago district of New Zealand. This marks the final round of results from the maiden drilling program at Cap Burn, which NewPeak kicked off in December 2020.

As part of this drilling program, eight diamond holes were drilled for 949 metres, with the best results including a nine-metre hit at 0.24 grams of gold per tonne (g/t gold) from 54 metres and a 1.8-metre hit at 0.76 g/t gold from 14.2 metres.

NewPeak Managing Director David Mason said the maiden drilling program at Cap Burn identified the presence of anomalous gold in the Otago region.

“The mineralisation discovered so far provides support of the current mineralisation model similar to the impressive Macros deposit,” Mr Mason said, referring to the nearby Macraes Mine, which is owned by ASX-listed OceanaGold (OGC) and has produced over five million ounces of gold since 1990.

“The New Zealand suite of projects is a valuable asset to the NewPeak portfolio, and the company will continue to advance the group of prospective Otago properties with the objective of discovering another Macraes style gold deposit.”

On the back of the completed drilling program, NewPeak said it has met its earn-in requirements under its Mineral Rangahau Joint Venture. This means NewPeak won’t have to make any more vendor payments for the recent purchase of the Cap Burn assets until March 2026.

Today’s news comes not long after NewPeak was granted an exploration permit in the Carrick Goldfield, also in New Zealand.

“We are pleased that the Carrick lease has been granted, and we will now implement an aggressive exploration program in this well-known historical Gold mining area,” Mr Mason said.

On top of the Cap Burn assets, NewPeak said it held a suite of 100 per cent owns gold properties in the Otago region, as well as the newly-granted Carrick lease.

Meanwhile, the company has gold projects in various stages of exploration and development in Argentina and Finland.

Shares in NewPeak Metals were down 25 per cent and trading for 0.15 cents each at 10:07 am AEST. The company has a $13.59 million market cap.

Related News