There was another two-gold nugget patched that have yielded 135 nuggets which were discovered by Pilbara gold player Kairos Mineral Limited (ASX: KAI) at its Croydon project.
The news was appreciated by the investors when they heard that these nuggets weighed in at 11.1 ounces. As a result of this, the share price hiked by 30% which was reported to be an intra-day high of 3.1 cents today morning.
Kairos was able to discover around 391 nuggets in total. The combined weight of these nuggets comes around 19.3 ounces whose cost comes roughly around $32,389 based on the current gold price having a sign of a watermelon seed as its hallmark.
Last year in the month of July, it was a sensational topic when Canadian partner Novo Resources and Artemis Resources (ASX: ARV) who are the gold explorers at Pilbara have taken up the reward project of Purdy near Karratha.
The gold which was discovered were categorized as firm gold as it was held by grey quartz pebbles and other minerals as well.
The chairman of the Kairos, Mr. Terry Topping stated that the new discovery made is similar to the Purdy’s reward. He also said that Kairos have recovered gold for the first time through Hardey Formation (it is a volcanic rock formation at Fortescue Basin in Pilbara that holds gold mineralization along with other metals like copper zinc and radioactive substance uranium).
As per Mr. Topping, the interesting fact about the Hardey Formation is that the gold discovered within Novo’s Beaton Creek project are finely grained. They are evenly distributed and can be measured by the standard drilling techniques. The gold which is discovered by Kairos over a strike length of 6km with its Croydon project.
In the month of September, the market was highly impressed by the discovery of 256 nuggets within a small region of 150 meters by 50 meters.
Kairos remain a negative performer throughout its journey. Since inception, the performance of the company was -97.84%. The 1 year, 5 years and 10 years performance of the company was-71.43%, -38.76% and -96.76% respectively. For the year ended 30 June 2018, the company incurred a net loss of $5,694,632. The balance sheet of the company remains strong. The net asset of the company is $21,639,638 which indicates that the company is in a position to clear its long-term obligations. The total current asset of the company was $6,709,906 and the total current liabilities was $1,480,330. This indicates that the company is in a position to meet its working capital as well as the short-term obligations. The total shareholder’s equity is worth $21,639,638. The net cash flows used in operating activities was $1,487,869. The major source of cash outflow was the payments made to suppliers and employees (inclusive of GST). The net cash flows used in investing activities was $3,803,159. In this category, the major cash outflow was due to payment for tenement and exploration. The net cash inflows from financing activities were $10,372,364. There was an increase in the cash and cash equivalent by the end of the year. The net cash and cash equivalents at the end of the financial year were $ 6,506,276.
By the end the day the market price of the share was A$ 0.024 with the market capitalization of A$20.45 million.
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