Spartan Targets Significant Increase in Never Never Gold Reserve

September 04, 2024 02:53 PM AEST | By Team Kalkine Media

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Spartan Targets Significant Increase in Never Never Gold Reserve — Image source: shutterstock

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Spartan Resources (ASX:SPR) Shows Promising Growth with Never Never Gold Deposit

Spartan Resources Ltd (ASX:SPR), formerly known as Gascoyne Resources, has emerged as a standout performer since its presentation at last year’s Resources Rising Stars conference. Executive Chairman Simon Lawson is optimistic about the future of the company's Never Never gold deposit in Western Australia, envisioning a maiden reserve that could significantly exceed seven figures. As an ASX mining stock, this development is closely watched by investors in the sector.

Despite the company's shares experiencing a 6% decline in a challenging market this morning, Lawson remains confident about the potential of Never Never. The deposit currently boasts nearly 1.5 million ounces of gold at an impressive average grade of over 8 grams per tonne (g/t). Spartan Resources, now valued at $1.4 billion, has seen its stock soar by 300% over the past year, largely driven by the promising developments at Never Never.

During his recent presentation on the Gold Coast, Lawson highlighted the extraordinary scale of the deposit, comparing it to his previous experience with narrow vein gold projects. He pointed out that Never Never features consistent 14-metre wide stopes and exceptional grades, setting the stage for a substantial reserve estimate.

The company has attracted significant interest from major industry players, including Ramelius Resources Ltd (ASX:RMS), which holds an 18% stake in Spartan. Lawson emphasized that while the company is open to future partnerships, the primary focus remains on building and expanding the mine for its shareholders.

The exploration and development efforts at Never Never and the adjacent Pepper discovery have shown impressive results. The upcoming underground drill drive, expected to commence in a few weeks, will enable more detailed drilling and could enhance the resource estimates for both deposits. Current estimates for Never Never and Pepper combined stand at 1.92 million ounces at 7.97 g/t, with a recent drill result at Pepper revealing a notable 27-metre intercept at 39.15 g/t gold.

Lawson, drawing from his experience with Northern Star Resources Ltd (ASX:NST), is particularly excited about the high ounces per vertical metre at Never Never. The project is nearing 2000 ounces per vertical metre, and with Pepper included, this figure approaches 4000 ounces per vertical metre. Such metrics suggest a highly productive mining operation in the making.

Spartan Resources continues to advance its projects with promising results, and the potential growth of Never Never and Pepper positions the company for a strong future in the gold mining sector.

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