Monger Gold (ASX:MMG) reports transformative June quarter, enters lithium exploration

Highlights

• Monger Gold (ASX:MMG) diversified its project portfolio with the acquisition of the Scotty Lithium Project during June quarter.
• The quarter saw the lithium project area expansion to 19,280 acres.
• Diamond drilling at the Providence Prospect delivered impressive results, and a maiden MRE was declared for the prospect.
• MMG also concluded the Gibraltar soils sampling program during the quarter.

Monger Gold Limited (ASX:MMG) recently released its progress report for the three-month period ended 30 June 2022. The quarter saw MMG make notable progress across its project portfolio – ranging from project acquisition to significant drilling developments.

One of the key highlights of the quarter was the explorer’s acquisition of a lithium asset in Nevada, US, which enhances MMG’s stance as a lithium explorer amid the rapid electrification of the transportation systems.

Moreover, the Company bolstered its leadership team with the appointment of Mr Adam Ritchie as Chief Executive Officer. As an experienced lithium and development professional, Mr Ritchie brings along with him over two-decade experience in the resources space.

Besides this, MMG has continued its progressive momentum well into the ongoing quarter and declared a maiden Mineral Resource Estimate (MRE) for a prospect at Mt Monger North.

What’s more, the company held cash of AU$3,968,000 at the quarter end.

On that note, let us look at the Company’s major developments during the June 2022 quarter.

Acquisition of Scotty Lithium Project

During the quarter, the company acquired up to 100% of American Consolidated Lithium Pty Ltd, which holds the rights to the Scotty Lithium Project in the US state of Nevada. Scotty immediately surrounds the Bonnie Claire Project, a host to one of the largest lithium resources in the North American region.

The acquisition includes a cost of AU$2.0 million payable in MMG shares. Notably, the acquisition and exploration program are completely financed with AU$4.75 million in cash, with MMG raising AU$1.76 million to finance work programs at the project.

The company initiated an auger soil sampling program extending across the complete Scotty Lithium Project as only 3% of the overall project area was previously sampled. Earlier sampling campaign across the project area delivered extremely strong and coherent anomalism.

Source: MMG Announcement 29/07/2022

MMG believes that a new soil sampling program will help the company define targets to test in the maiden drilling program, which is slated for the second half of 2022.

Besides this, the quarter saw the project area expansion by 37% to 19,280 acres. The development gave the company access to further 264 claims that cover 5,280 acres over the south of the project.

MMG remains optimistic about the possibility of the occurrence of extensions of high-grade lithium mineralisation in the new area. This mineralisation is expected to be similar to that of the Bonnie Claire Deposit.

Encouraging diamond drilling results from Mt Monger North

During the quarter, the company also informed about encouraging results from diamond drilling at the Providence Prospect of Mt Monger North.

The significant results returned from gold assay intervals suggest a strong probability of the presence of high-grade copper as well as gold in the area. This further establishes that the project comprises a copper-gold system.

Significant intersections from three NQ² core size diamond holes drilled during the initial drill programme include the following:

• 1m @ 19.19 g/t gold from 99m;
• 8m @ 4.34 g/t gold from 123m including 21.30 g/t from 130m;
• 7m @ 2.15 g/t gold from 65m;
• 5m @ 2.11 g/t gold from 108m
• 2m @ 0.46% Copper from 130m including 1m @ 0.56% copper

Source: MMG Announcement 29/07/2022

Maiden MRE for Providence Gold Deposit

One of the major developments made by MMG after the June quarter is the maiden JORC (2012) Mineral Resource Estimate (MRE) for the Providence Gold Deposit at Mt Monger North. 

Source: MMG Announcement 29/07/2022

In early July 2022, MMG declared an MRE of 204,700 tonnes @ 2.5g/t for 16,400 ounces of gold for the Providence Gold Deposit. This resource is at open pit extractable depths and rests within a prolific gold district south-east of Kalgoorlie, WA.

The resource is currently open along strike and at depth, and MMG looks forward to undertaking systematic exploration to continuously enhance the resource.

Rock chip sample assay results from Mt Monger South

MMG also received assay results from rock chip samples from the Ben Nevis Prospect at Mt Monger South during the quarter. These results include copper assays to a maximum of 1,086ppm and zinc assays to a maximum of 3,742ppm.

The area is a newly defined anomaly identified by MMG and is believed to be a prospective zone of copper and zinc VMS-style mineralisation.

The Company plans to undertake a FLEM geophysics survey across the anomaly and anticipates receiving results in FY23.

Soils sample program at Gibraltar

Over the Gibraltar Project south tenements, MMG concluded a soil sampling program over an 11.89km² area. The program was aimed at concealed deposits of gold, copper, nickel-cobalt and lithium at the project. Under the program, MMG collected 469 UFF+Ô soil samples on seventeen 400m spaced traverses.

Recently, Norton Gold Fields Ltd has commenced drilling on MMG’s lease boundaries adjoining the soil sample program.

MMG shares were trading at AU$0.230 midday on 04 August 2022.