A Look at Junior Gold Players with Decent 3-Month Return – DEG, SCN, ALK, GGO and GOR

A Look at Junior Gold Players with Decent 3-Month Return – DEG, SCN, ALK, GGO and GOR

Amidst rising concerns over the coronavirus outbreak, investors are increasingly turning towards the safe haven assets like gold, brightening gold outlook. It is worth noting that the gold spot recently inked a record high of $2,378.76 on 31 January 2020, encouraging market experts to expect a continuation of the gold rally in 2020.

Backed by optimistic gold price outlook, numerous junior gold players have managed to deliver significant returns in the last three months.

Given this backdrop, let’s take a look at some of the ASX-listed junior gold players that have recently demonstrated new gold discoveries, generating substantial returns over the last three months:

De Grey Confirmed High-Grade Gold at Hemi Prospect

Gold explorer and mining company, De Grey Mining Limited (ASX:DEG) has recently reported outstanding results from follow up aircore drilling conducted at its newly discovered Hemi Prospect.

The drilling results cover the aircore drilling results for 20 holes completed on the initial discovery Section A of Hemi Prospect. Aircore drilling continues at the prospect to define considerable mineralisation.

The Company reported additional high-grade and thick gold mineralisation intersecting at Hemi on Section A, consolidating a considerable 30m wide gold zone to about 130m depth, open in every direction. The recent results include:

  • 44m @ 5.1g/t Au from 40m in BWAC320, including 13m @ 8.8g/t
  • 46m @ 6.6g/t Au from 92m in BWAC321, including 21m @ 8.3g/t

The recent results correlate strongly with the results previously announced by the Company on 6th February 2020, which include:

  • 49m @ 3.7g/t Au from 65m in BWAC309, including 18m @ 6.6g/t
  • 24m @ 7.5g/t Au from 126m in BWAC315, including 18m @ 8.6g/t (EOH)
  • 36m @ 4.0g/t from 39m in BWAC245, including 11m @ 8.9g/t

The Company has completed aircore drilling for a further 39 aircore holes, whose results are pending. It has further planned to commence aircore, reverse circulation and diamond drilling in the near future.

Scorpion Minerals Limited Announced Discovery of New Gold Targets at Pharos Project

Mineral explorer, Scorpion Minerals Limited (ASX:SCN) has announced the discovery of new gold targets at Pharos Project. The Company undertook selective rock chip sampling of outcrop within the newly granted E20/948 tenement in early February.

The Company collected 37 samples for analysis by fire assay, out of which eight samples returned anomalous values above 180 ppb.

Rock chip sampling at Candle prospect validated two mineralised vein sets 100m apart – returning values of 2.8 ppm Au and 2.5 ppm Au. Western zone maximum rock chip assay returned 2.5 g/t Au and eastern zone maximum rock chip assay returned 2.8 g/t Au. The Company added that both the zones are 400 metres south of a historically reported mineralised RAB intersect.

In addition, rock chip sampling at Beacon prospect returned anomalous samples from gossanous material with a maximum assay 0.84 g/t Au.

The Company has further planned to undertake:

  • Detailed geological mapping of selected target areas.
  • Orderly auger soils geochemical sampling of the Pharos project initially targeting top priority targets.
  • Completion of a regional geologic interpretation and reprocessing of existing air magnetics.
  • Follow up Reverse Circulation drilling at Lantern, Mustang Sally, Candle, Ulysses and Laterite Hill (all are historic drill intercepts).

Coziron Results Underline Mallina Potential, Reported DGO Gold

Gold and base metals producer, DGO Gold limited (ASX:DGO) recently reported that the results from Coziron Resources Limited (ASX:CZR) and the ongoing results from De Grey have highlighted the potential of Mallina Gold Project.

The Company has noted substantial gold intersections in a maiden drill program conducted by Coziron, which has recently announced the intersection of gold mineralisation at its Top Camp prospect, including:

  • 8m @ 10.3g/t from 135m

The Company’s Mallina tenements adjoin both De Grey Mining’s Mallina Gold Project and Coziron’s Croydon Project, and the similar anticlinal structures are interpreted to cross all three tenement packages.

Recently, the Company also conducted a follow-up diamond drilling on its Black Flag tenements, situated around 20km north-west of Kalgoorlie in WA, whose assay results provided further evidence of large mineralised system. The Company considers Black Flag as a highly promising exploration target, and its recent diamond drilling assay results suggest that it has drilled into a significant mineralised system

DGO is further preparing to commence a drilling program over the Scotties Well target in March 2020.

Alkane Resources Reported Solid Drill Results for Boda Prospect

Gold production company, Alkane Resources Limited (ASX:ALK) has reported fresh assay results that provide further encouragement that the Boda Prospect is a significant discovery.

The Company conducted testing at the Boda Prospect with one diamond core drill hole (KSDD005), whose assay results suggest a rise in the thickness of substantial porphyry gold-copper mineralisation with depth.

The Boda Prospect is part of the NMPP (Northern Molong Porphyry Project) which includes exploration licences comprising an area of 110 km2 of the northern MVB (Molong Volcanic Belt), in Central West (New South Wales).

The drill intercept highlights include:

  • 689m @ 0.46g/t gold, 0.19% copper from 402 metres
  • Including 312m @ 0.70g/t gold, 0.19% copper from 402 metres
  • Including 119m @ 1.47g/t gold, 0.29% copper from 463 metres
  • Including 10m @ 3.77g/t gold, 0.63% copper from 464 metres
  • Also 12m @ 4.38g/t gold, 0.75% copper from 564 metres.

The Company mentioned that the consistency of mineralisation and the continuation of the grade at depth are additional proof of a big porphyry system. It is progressing with its follow up drilling at the Boda Prospect.

Gold Road Targeting Gruyere Gold Production of 250,000 – 285,000 ounces in 2020

Gold producer and exploration firm, Gold Road Resources Limited (ASX:GOR) has recently declared a 1.2 million ounce upgrade to Measured and Indicated Resources for the Gruyere Joint Venture, along with Gruyere 2020 production guidance.

The Gruyere is a 50-50 joint venture with Gruyere Mining Company Pty Limited, which operates and manages the Gruyere gold mine.

The Company notified that drilling completed in 2019 has led to a 29 per cent increase in Measured and Indicated Resources to 6.1 million ounces at the JV via an upgrade of Inferred to Indicated Resources.

Moreover, Gruyere joint venture total mineral resource is now 154 Mt at 1.34 g/t Au for 6.6m oz after mining depletion of 0.19m oz using an $1,850/ounce gold price hypothesis. Through the addition of 100 per cent owned Resources in 2019, the Company’s attributable Mineral Resources rose from 3.3m oz to 3.6m oz (post depletion).

The Company has targeted Gruyere gold production of 250,000 – 285,000 ounces for 2020, with (125,000 – 142,500 ounces attributable. Moreover, it has estimated its all?in?sustaining costs between $1,100 to $1,200 per attributable ounce.

The Company’s target is to review Reserves with the goal of growing mine life whilst maintaining a low all?in?sustaining costs.

In a nutshell, all these junior gold players have demonstrated significant development in the metals and mining space, delivering considerable returns to investors in the last three months. These players are well on track to make a name in the Australian gold domain.


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