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Summary
- Volatility due to the pandemic has prompted investors to rush towards the safe haven, highlighting its unique attributes such as liquidity and imperfect correlation with other assets.
- The piqued interest for secured return and minimised risk has catapulted gold prices post the COVID-19 outbreak.
- King River Resources’ gold exploration plans at its Tennant Creek Project and Mt Remarkable Project are expected to align well with the current market opportunities.
- The Company has commenced gold exploration at its Tennent Creek Project.
Exploration endeavours of Perth-based King River Resources Limited (ASX:KRR) have hit the ground running with commencement of its 2020 gold exploration programme. Drilling activity at Tennant Creek Project in the Northern Territory is already in motion, while at Mt Remarkable Project in Western Australia, it is all geared up to kickstart. It appears that the Company would be experiencing another round of mesmerising developments.
Significantly, the recent striking achievement concerning >4N (>99.99% Al2O3) High Purity Alumina production as part of the Speewah Project PFS is a signpost, demonstrating strategic directions of KRR.
For Detailed Discussion Read: King River Resources Riding High with Noteworthy PFS Developments on Speewah Project
As King River advances its exploration journey for the yellow metal, ongoing gold rally adds another hue onto the rainbow. Notably, amidst the current environment dominated by COVID-19 induced volatility, gold prices have been smashing new records. The apprehensions concerning the pickup of economic activities have triggered investors to rush to the safe haven, which offers a substantial low-risk investment alternative.
ALSO READ: King River Resources’ Gold Exploration Plan Sitting on Sweet Spot with SPP Offer Completion
Growth Momentum in the Gold Market
Brimming energy surrounding the precious yellow metal is indicated by significant price gains, while gold-backed ETFs continue to witness impeccable growth in net inflows. Gold traded at USD 1934.6 on 4 September 2020 at 3:50 PM AEST, experiencing an increase of approximately 27.5% on a year-to-date basis.
The highly volatile scenario is fostering attractiveness of portfolio diversification, with investors chipping in gold investments to their portfolio. The negative correlation of gold price with other securities substantially contributes to mitigating the market risks.
Meanwhile, the precious commodity is regarded to offer relatively higher purchasing power during the period of low economic activity, which the world is currently facing. Easy liquidity associated with gold-related investments has been garnering investor’s interest, maintaining spotlight on the yellow metal.
The lucrative prospects around gold catapulted by driving forces seem to nurture favourable landscape for gold exploration in Australia, known for its vast gold resources.
ALSO READ: King River Resources’ Quarterly Report Card Shining with Imprints of Strategic Accomplishments
Gold Exploration Focus of King River Resources
King River Resources after delays caused by COVID-19 pandemic restrictions started its gold exploration programmes in August. The ongoing opportunities and prospects string along with the current exploration plans.
Tennent Creek Exploration Plans
Last month, the Company announced commencement of a 2,000m RC drill programme at its Tennant Creek project, testing for high-grade gold mineralisation at the project.
The drilling following up on very encouraging 2019 geophysical results would target three main coincident gravity and magnetic trends at the Lone Star area.
The Company would then move drilling to the Commitment Prospect where an NW/SE trend is followed by a sizeable coincident gravity and magnetic anomaly. Target of the drilling would include the main magnetic body and a strong gravity anomaly, which potentially represents a hematite rich zone.
Magnetic anomalies and reconnaissance discoveries of the Tennant Creek East area would also be incorporated in the 2020 exploration plans and would be tested with ground magnetics/gravity surveys.
KRR would pursue a co-funded programme administered by the Northern Territory Geological Survey (NTGS), with half of the survey cost borne in the collaboration programme.
The program includes:
- Over EL31633, a ground geophysical as well as a detailed airborne magnetic survey
- Over EL31634, a ground geophysical survey to test and define significant magnetic anomalies. It would test the depth of cover in a previously unexplored area.
KRR holds four exploration licences at its Kurundi Project, where it has planned initial reconnaissance exploration. The Kurundi project tenements cover highly prospective ground for high-grade gold mineralisation and include the Kurundi historic mine and the Whistle Duck prospect.
What is in Store for Mt Remarkable Project?
KRR, for exploration at the Mt Remarkable high-grade gold project, has planned a 2,500m RC drill programme at the main Mount Remarkable project. Notably, a number of robust gold results were earlier returned from the project. The RC programme would target Trudi East, Trudi Offset, Jennifer North, and Graham/Catherine Vein Intersection.
The Company intends to perform reconnaissance of high-grade gold area of the Hunter East. Additionally, reconnaissance of the southern tenement gold prospects would also be conducted, including Little Gold River, Middle Branch Bore Lansdowne and Tunganary.
Drilling at the project is planned for September/October 2020, with the aim of extending current high-grade gold mineralisation, as well as identifying new mineralised veins/structures and new high-grade shoots on known mineralised veins.
On 4 September 2020, KRR stock ended the day’s trade at $0.030. On a year-to-date basis, the stock has delivered a return of over 47%.
