Spartan Resources Ltd (ASX:SPR, OTC:GYYSF) has announced an updated mineral resource estimate for its 100%-owned Dalgaranga Gold Project in the Murchison region of Western Australia, 65-kilometres north-west of Mt Magnet.
The company is currently undergoing a transformational restructure, repositioning itself as an advanced exploration company with a rapid pathway back into production at Dalgaranga Gold Project.
The Dalgaranga project produced over 70,000-ounces of gold in the 2022 financial year before being placed on care and maintenance in November of that year to implement an operational reset. This was done to preserve the value of its extensive infrastructure and resource base, while developing a new, sustainable operating plan.
This strategy is underpinned by the exceptional high-grade Never Never gold discovery, which was made in 2022 just 1-kilometre from the existing 2.5-million tonne per annum carbon-in-leach processing facility and the main open pit at Dalgaranga.
Update mineral resource estimate
Spartan is working to rapidly unlock the potential of this significant discovery, and has now announced an updated mineral resource estimate for Dalgaranga.
This latest mineral resource estimate comprises an update for the high-grade Never Never Gold Deposit and an update for the Gilbey’s Complex, which includes the higher-grade Four Pillars and West Winds Gold Prospects.
The resource estimate for Dalgaranga now stands at 1.7-million ounces at 2.49g/t gold — a 43% increase in resource ounces, a 13% lift in grade and 27% more tonnes.
This includes an updated high-grade resource for the Never Never discovery of just under 1-million ounces at an average grade of 5.74g/t. This is a substantial upgrade in less than 12 months from the existing resource at Never Never of 721,200-ounces at an average grade of 5.85g/t.
News of the updated mineral resource estimate follows an announcement on Tuesday of more outstanding high-grade assay results from multiple prospects at the project, with numerous significant intercepts reported from resource infill and extensional drilling at Never Never Gold Deposit, including the deepest assay from the deposit to date.
“An exceptional result”
Spartan managing director and CEO Simon Lawson said: “This is an exceptional result for our shareholders which reflects the hard work of the Spartan team over the past year. To be able to post a high-grade Resource for the Never Never discovery of just under 1 million ounces at an average grade of 5.74g/t less than a year after emerging from a 10c recapitalisation is an incredible outcome and a remarkable story – one of which we are justifiably proud!
“The centrepiece of this MRE update is once again the Never Never discovery, which has grown remarkably within short order from a resource of 303,000oz at the start of 2023, through to 721,000oz in July, and now, less than 12 months later, reaching 952,900oz – 74% of which is now classified as Indicated.
“Importantly, Never Never continues to emerge as an exciting growth story at depth, with recent visible gold intercepts having been logged below the current MRE boundary and awaiting assay. The deposit remains open and appears to be shallowing and flattening slightly to the south due to the flexure zone mentioned in Tuesday’s announcement.
“This presents as a tantalising target for a fan of directional drilling from a parent hole that we plan to drill early in the New Year to systematically understand the potential of Never Never Deeps."
Gilbey’s Complex
Lawson added, “I would also like to highlight the importance of the recognition and structural re-interpretation of the highgrade Four Pillars and West Winds gold prospects, part of the larger Gilbey’s Complex MRE presented here. We believe these high-grade structures within and beneath the current Gilbey’s open pit, when combined with the incredible high-grade endowment of the Never Never Gold Deposit, are a key part of any longer-term future mine plan.
“We now have 739,800 ounces at an average grade of 1.45g/t in resource at Gilbey’s as a starting point for the future. That grade is more than 50% above the average resource grade at which the company was mining last year.
“The identification and focus on the higher-grade aspects of the Gilbey’s sequence bodes extremely well for the potential to add bulk tonnage open pit ore feed at very attractive grades into the high-grade ore feed that we expect will come from the Never Never underground mining complex.
“The company’s mining strategy for these deposits located within the floor of the current Gilbey’s open pit is likely to be somewhat different from what was contemplated and mined before, albeit we are very excited about the possibilities here.
More drill assays to come
“Another key takeaway for investors is that while this is just an interim update in what is a rapidly unfolding growth story at Dalgaranga, the company has more drill assays to come and many more high-grade targets sitting along-strike from Never Never, Four Pillars and West Winds,” said Lawson.
“We have a full target set and we have shown what our team is capable of with our drilling strategies. We are well positioned and set to continue to deliver more high-grade ounces at very attractive gold grades.
“We are all looking forward to another massive year in 2024. If we can repeat anything like the success we have enjoyed in 2023 in terms of continued growth in high-grade resource ounces within a 2-kilometre radius of the Dalgaranga plant, then Spartan is set for a very exciting future!
“Upon reflecting on 2023, this has been a huge team effort, and I would especially like to thank our Exploration and Drill Management team on site, our Resource team and our incredible Finance team for their diligent stewardship of our exploration programs and prudent management of our finances.
“I would also like to thank and wish all of our loyal shareholders a very safe and festive summer season and we look forward to presenting more high-grade drill results, more rapid resource growth, and as a consequence an exciting mine plan and Ore Reserves in 2024.”
Additional Spartan projects
In addition to the Spartan’s near-mine exploration at Dalgaranga, it is actively exploring more than 500-square kilometres of surrounding exploration tenements, and also owns the advanced 244,000-ounceoz Yalgoo Gold Project, where permitting activities are well advanced to establish a potential satellite mining operation at the Melville deposit.
Further, the company’s 527,000-ounce advanced exploration and development project at Glenburgh–Mt Egerton, which is around 300-kilometres north of Dalgaranga, has the potential to be a second production hub.
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