- Besra Gold Inc. (ASX: BEZ) updated that its subsidiary NBG has inked a legally binding GPA for US$300 million with Quantum.
- Flynn Gold Limited (ASX: FG1), in its March quarter report, said that phase 1 drilling at the Trafalgar prospect was concluded.
- De Grey Mining Limited (ASX: DEG) reported the latest resource infill drilling outcomes from the Toweranna regional deposit.
The Australian benchmark index S&P/ASX200 was trading down by 0.22% to 7,260.80 points on Tuesday, 9 May 2023, at 4:06 pm AEST. The sub-sector S&P/ASX200 Materials index was also trading lesser by 0.28%.
Gold prices were moving between a narrow range on Tuesday prior to the release of US inflation data. Spot gold rose by 0.26% to US$2,026.50 per ounce as of 4:07 pm AEST on Tuesday. At the same time, Gold Futures were up by 0.06% to US$2,034.30.
Let’s now flick through 3 ASX gold stocks- BEZ, FG1 and DEG.
Besra Gold Inc. (ASX: BEZ)
The gold explorer focused on the exploration and development of the 3m ounce (JORC) East Malaysia-based Bau Goldfield rocketed as much as 93.181% to trade at AU$0.315 on Tuesday, at 4:09 pm AEST.
The movement in BEZ’s share price seems to be triggered by its latest update that it and its 100% owned Malaysian subsidiary NBG have inked a legally binding Gold Purchase Agreement (GPA) for up to US$300 million with BEZ’s major stakeholder Quantum Metal Recovery, giving effect to the non-binding term sheet (notified on 21 March 2023).
The GPA provides up to US$300 million deposit, to be paid over 30 months against future gold production ounces. The company confirmed receipt of the initial US$2,000K instalment of the US$5,000K Initial Deposit, with the balance to be remitted to BEZ by no later than three business days after the terms and conditions are fulfilled.
BEZ continues to aim 100% operational facility, which consists of an initial drawdown of US$10 million, by 30 June 2023, conditional on the conclusion of the rest of the conditions precedent.
Flynn Gold Limited (ASX: FG1)
The mineral explorer targeting gold in two emerging gold camps in Pilbara and northeast Tasmania increased 11.290% to AU$0.069 on Tuesday at 4:10 pm AEST despite no price-sensitive news released today.
In its quarterly activities report ended 31 March 2023, the company reported that phase 1 drilling at Trafalgar prospect (within NE Tasmania-based Golden Ridge Project) was concluded.
Trafalgar prospect drilling campaign has intersected high-grade gold across an open strike length of 200m. Phase 2 drilling activity at Trafalgar prospect has begun targeting extensions of known gold mineralised structures.
The first two diamond drilling campaign was concluded at the Popes Gold Prospect within Portland Gold Project. Also, in the quarter period, FG1 settled an equity placement and raised AU$3.781 million (before costs).
De Grey Mining Limited (ASX: DEG)
The miner involved in gold exploration and development activities decreased by 2.215% to AU$1.545 on Tuesday, at 4:10 pm AEST, after the company reported the latest resource infill drilling results from the Toweranna regional deposit.
Toweranna is the first intrusion that led to the Hemi discovery and is a key regional resource of the Mallina Gold Project, presently reporting 525 Koz @ 2.2g/t gold (indicated and inferred).
Drilling outside of the present resource has recognised 41.5 metres at 4.7g/t gold from 12 metres and 22m at 1.4g/t gold from 60 metres depth in MWDD003. The thickness of this steeply dipping high structure east of the present resource possibly reflects drilling down the dip of the structure. Interpretation is ongoing here.
Initial results gave nearly 97% gold recovery (including the unsorted screen fines fraction), with a mass rejection of 29%, resulting in an average upgrade ratio of 1.37.