Gold Prices Climb Amid COVID-19; King River Resources with Right Asset at Right Time

Australian specialty metals explorer, King River Resources Limited (ASX:KRR) appears to be advancing well through implementing its strategic approach in the favourable budding landscape. The Company, recently at its wholly owned flagship Speewah Specialty Metals Project in Western Australia, achieved >4N High Purity Alumina by new refining process under the Prefeasibility Study.

Meanwhile, Mt Remarkable Gold Project and Treasure Creek Project appear well-positioned to capitalise on the market sentiments amidst the COVID-19 scenario. The rolling wheel of uncertainty prevailing through the pandemic scenario has pushed the bullion counters to new heights. The investors seem to be utilising the cash injected through the Government stimulus packages to purchase gold-related stocks.

Furthermore, the escalating tension between the US and China is adding up to the allure of the yellow metal with the gold rates flaming, as the investors eye the safe haven. The gold spot was trading at USD 1699 (as on 5 May 2020, 12:19 PM AEST). Meanwhile, in the last one month, the price has appreciated by ~5%, sending positive ripple among gold players.

KRR’s resource bag and recent high-grade mineralisation at Mt Remarkable put its gold-related project in the glittering zone.

With this backdrop, let us look at the recent exploration success and the prospective plans of King River Resources in relation to its gold project portfolio.

Casting Eye on Mt Remarkable Gold Exploration

The KRR 2019 drilling program at Mt Remarkable Gold Project has returned assay results of all the drill holes. Along with Trudi Vein, the drilling also targeted the reconnaissance veins, which was identified during exploration earlier in the year 2019.

Trudi Vein

At main Trudi deposit’s 150 kilometres east, a new mineralised zone with grades up to 2.42g/t Au has been intersected. The new zone is sandwiched between the broad mineralised zone (intersected in 2018) and the Trudi main deposit. The broad mineralised zone intersected 10 metres @ 0.32g/t Au, giving the average return of 0.16g/t Au within a 29 metres mineralised zone.

Around and down plunge of the new intersection, further exploration for high-grade zones is encouraged, owing to the quartz-adularia veining strength, low gold/silver ratio and higher-grade gold results.

The best assay results from the 2019 drilling programme were:

• 6m @ 5.95g/t Au from 20m including 1m @ 33.7g/t Au
• 3m @ 7.1g/t Au from 26m including 1m @ 17.9g/t Au

Reconnaissance Veins

Reconnaissance drilling targeted the anomalously mineralised veins, which were identified during the 2019 reconnaissance soil sampling and rock chip work.

The best results were from the Jeniffer North Vein, where three out of the four drill holes intersected up to 0.64g/t Au sizeable gold mineralisation. Jeniffer North lying 3 kilometres of Trudi’s Southwest sits within the granted EL5133 tenement. The newly intersected mineralisation at Jennifer North is open along the west strike, down dip to the east and at depth.

Lens through Gold Discovery at Treasure Creek Project

At Treasure Creek, Atlas Geophysics completed gravity and geophysical ground magnetic surveys on tenement EL31619. The tenement consists of part of the iron oxide copper-gold (IOCG) trend of Lone Star and sits within and immediate east of the gold field at Tennant Creek.

Commitment Magnetic and the Lonestar Trend magnetic anomaly were the two main targets that were surveyed. Lonestar Trend’s gravity and magnetics have defined the main magnetic anomaly that lies at a distance of only 3.3 kilometres from Emmerson’s Mauritania prospect.

Commitment Prospect gravity survey identified a substantial gravity high, slightly offset from and adjacent to the main magnetic high. The prospect is presently being sculpted for drill targeting and represents an ironstone body’s more hematite rich part.

Magnetic and gravity anomalism strength at the Lone Star and Commitment trends is comparable to the area’s IOCG deposits.

Ongoing Exploration and Outlook with Gold Centric Focus

Mt Remarkable Project

• At the northeast of the offsetting fault to Jennifer North, KRR will continue testing extensions through the reconnaissance exploration.

Treasure Creek

• KRR is employing a detailed Treasure Creek tenements’ geophysical and geological review. The geophysical review is being conducted by Resource Potentials in Perth
• NT Mines department is doing the final stage review of the environment approval.
• The Company plans to start a drilling program at the main EL31619 geophysical targets following the ease of current restrictions related to the COVID-19 outbreak.

On 5 May 2020 (AEST 12:52 PM), KRR stock was trading at $0.043, advancing further by 4.878% from its previous close. In the past 3 months and 1 year, the stock has generated a positive return of 105% and 70.83%, respectively.