Australasian Metals (ASX:A8G) unlocks potential of Dingo Hole and Capella Gold Projects in September quarter

Highlights

• A field sampling program at Dingo Hole Highly Pure Quartz (HPQ) Project, reported up to 99.95% SiO₂
• A8G expects the Dingo Hole project to achieve 99.99% purity with simple processing
• Data review at the Capella Project identified promising drill targets for follow-up exploration of high-grade epithermal gold veins.

Australasian Metals Limited (ASX:A8G) focused on advancing the Dingo Hole HPQ project and identifying further drilling targets at Capella Gold project during the quarter ended 30 September 2024. The company envisions becoming a leading supplier of high-purity quartz in Australia, an essential element of a low carbon and green economy.

Potential of Dingo Hole Project

In May 2024, the company executed an option agreement with Verdant Minerals for acquiring 100% stake in the Dingo Hole. This acquisition provides the company with exposure to the expanding HPQ sector.

During the quarter, the company highlighted the potential of the project by estimating maiden exploration targets. The initial range was defined by SRK Consulting.

Image source: Company update

The company also conducted a field sampling program at the project, with the outcomes exceeding expectations. The results revealed that samples, which were subjected to preliminary acid leaching, recorded 99.95% of SiO₂, while untreated samples yielded 99.88% of silica content. Importantly, both streams showed very low levels of critical impurities - AI, Li, Ti and U. The results were significant improvement over the data reported by Rum Jungle in 2016.

Based on these results, A8G expects the project to achieve “4 nines” quality (99.99%) purity with simple processing.

Planned exploration program for Dingo Hole

The exploration program intends to improve the understanding of the geological and geochemical features of the project. The aim is to determine potential HPQ resources and undertake subsequent metallurgical testing.

• The company intends to conduct further surface sampling and perform comprehensive 57-element assays.
• An Aboriginal survey and renewal of the Aboriginal Areas Protection Authority (AAPA) certificate are also planned. This will allow in advancing the drilling and bulk sampling in areas identified for HPQ potential.
• A drilling program will be carried out to establish a reliable mineral resource estimate for HPQ and to collect samples for metallurgical testing.

Promising new drill targets identified at Capella Gold Project

During the September quarter, the company conducted a desktop targeting at the Mt Clermont and Capella projects and concluded a data review of the work conducted at the Ayres Rock Prospect within Capella project, located in Central Queensland. The study has highlighted drill targets for follow-up exploration of high-grade epithermal gold veins discovered during drilling at the Ayres Rock prospect.

The study and data review have interpreted targets as plunging shoots identified from previous drilling intersections-

Data source: Company update

Mapping near the high-grade intersections has revealed outcrops and sub-outcrops of epithermal veining. The newly mapped vein is exposed along a strike length of approximately 100m. The study has pinpointed multiple targets with additional mineralisation potential, where the A8G has identified likely high-grade plunging ore shoots. Proposed exploration drill holes on two sections have been designed to assess these plunging shoot targets at different depths.

A8G shares trade at AU$0.120 apiece at the time of drafting on 24 October 2024.