Golden Mile Discovers Large Gold Anomalism At Monarch Gold Trend; Stock Zooms Up By 15.8 %

Golden Mile Resources Limited

Golden Mile Resources Limited (ASX: G88) is based out of Fitzroy and engaged in the exploration, acquisition and development of mineral properties in Australia. Its primary interest lies in cobalt, nickel, gold, and other base metal deposits. As of late, the company wholly-owns portfolio of around six key projects situated across the North-eastern Goldfields of Yilgarn Craton in Western Australia.

Recently, on March 8th, 2019, the company announced all the assay results from an extensive auger sampling program conducted over the Monarch Gold Trend on the Leonora East Project in the North-Eastern Goldfields. The sampling has outlined the presence of extensive, coherent gold anomalism (up to 50 ppb Au +/- pathfinder elements), in several auger holes with grades up to 270 ppb Au, spanning over approximately 11 km of strike, thereby testifying that the Monarch Gold Trend entails a significant gold mineralised system. Also, the study verifies the exploration potential of the project which could result in the discovery of a substantial gold deposit.     

Going forward, Golden Mile Resources has begun the initial work to refine the interpretation of the anomalies further and formulate plans for the necessary follow-up work. This includes infill sampling to facilitate the identification of critical targets for future aircore or RC percussion drill testing.

As the work progresses, Golden Mile is also planning to explore the Company’s other tenements in the prospective Leonora region and accordingly update the shareholders.

Prior to this, on February 11th, 2019, the company also updated that a program of reverse circulation (RC) percussion drilling at the Quicksilver Nickel-Cobalt Project situated in the South West Mineral Field had successfully intersected three new zones of sulphide mineralisation. As per the information, the sulphides are dominated by pyrrhotite-pyrite mineralisation with some chalcopyrite.

Golden Mile Resources had received sanctions for around six prospecting licence applications as part of the Leonora East Gold Project, by the WA Department of Mines, Industry Regulation and Safety (DPIRS). The licenses together span across ~1,000 ha and require a total statutory expenditure commitment of ~$ 40,000 per annum.

As per the recently released quarterly report for the period ended December 31st, 2018, the company posted major cash outflows of around AUD 445K from operating activities resulting mainly from payments for exploration & evaluation (AUD 257K) and other administration and corporate costs (AUD 190K). There were no investing activities undertaken during the concerned period, and financing activities were also at a low (AUD 2K). At the end of the quarter, Golden Mile had net cash and cash equivalents amounting to ~ AUD 1.78 million, down on AUD 2.22 million recorded in the previous quarter. Besides, the company also estimates cash outflows for the next quarter to be around AUD 462K.

Golden Mile has a market cap of AUD 5.5 million with approximately 57.9 million outstanding shares since It got listed on the ASX in 2017. At the end of the market session on March 8th, the G88 stock price closed at AUD 0.110, rising by 15.789%, indicating an intra-day gain of AUD 0.015.


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