By delivering a 36 percent increase in resources, emerging gold company Saturn Metals has proved a point in its first eight months of listed life, at its flagship Apollo Hill gold project near Leonora in the Western Australian goldfields
After completing a well-supported $7 million IPO, Saturn, which debuted on the ASX in March 2018, announced, on Monday that for Apollo Hill of 20.7 million tons grading 1.00 grams of gold per ton for 685,000 ounces of contained gold, an upgraded inferred and indicated Mineral Resource.
A 14% improvement in grade on Apollo Hill’s previous resource, is also represented by the new resource estimate, which was for 505,000 ounces of contained gold, 17.2 million tons at 0.9 grams of gold per ton. A portion of the Apollo Hill resource, for the first time - at 1.1 grams of gold per tonne for 116,000 ounces, 3.3 million tonnes has been declared in the higher confidence indicated category.
To achieve the resource upgrade, at Apollo Hill, Saturn completed some 10,000 meters of infill and extensional drilling. This equated to a discovery cost of just $9.40 an ounce the company said which compared extremely favorably to the global gold industry average.
As Saturn looks further, drilling has already resumed, rapid expansion of the Apollo Hill system and another resource upgrade may be approaching next year as suggested by the company. From the northernmost and southernmost holes drilled at the project, some of the best intersections have been returned giving Saturn the confidence that more ounces can be added relatively quickly.
For it to proceed development studies on a mining operation and the critical mass to proceed with pre-feasibility, the company is targeting resource of at least one million ounces, ultimately which may provide the critical mass.
Saturn believes its ground is underexplored despite being located in the heart of the WA goldfields and still has a lot more secrets to give up. To spin out Saturn as a separate vehicle late last year, listed explorer Peel Mining made the decision in order to ensure Apollo Hill received more attention.
Due to the company making several promising discoveries in New South Wales’ Cobar Basin, it ranked down the list of priorities within Peel where it is one of the dominant landholders. Saturn Metals Limited (ASX: STN) traded at a market price of $0.270 as at November 20, 2018. The stock is trading near its 52-week high and has seen a performance change of 47.37% over the past 6 months.
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