Morning News Bites – August 25

In Today’s Morning News Bites for August 25. Resolute confirms supply lines to the Syama Gold Mine continue, despite political tension in the south of Mali. Largest diamond unearthed this year discovered in Africa. Victoria report another 9 COVID-19 related deaths. 

SRG Global provided results for FY20, with revenue at AU$545 million. The impact of the global pandemic is mentioned and the negative effects on key drivers are explained. These include a repositioned and simplified business – core business, clients and geographies, continued plan to execute strategy to transition business mix to annuity earnings, significant liquidity with available funds of $73m (banking facilities renewal not due until FY22), net debt reduced in 2H to $8.4m (inclusive of $26m of equipment finance debt) and final fully franked dividend of 0.5 cents per share (total FY20 dividend of 1 cps). Despite this, Managing Director David Macgeorge maintained a positive outlook into the future, saying ““The decisive actions taken in FY20 has us well positioned for long-term sustainable growth, underpinned by an earnings profile of two thirds annuity-based in FY21 and beyond.”

Breaker Resources announces more strong drilling results which confirm the presence of extensive mineralisation over 2km between the Kopai and Crescent prospects within its Lake Roe Project, 100km east of Kalgoorlie. The latest results are from 40 reconnaissance reverse circulation (RC) drill holes for 5,202m, and two diamond drill holes for 269m. Breaker Executive Chairman Tom Sanders said the latest results are significant particularly given the reconnaissance nature of the drilling.“This 2km stretch of mineralisation sits just 3km north of our existing 1Moz Bombora deposit and highlights the outstanding growth potential of a rare emerging greenfields gold district on Kalgoorlie’s doorstep,” Mr Sanders said.

Significant new assay results from the ongoing resource drilling programme at the shallow high-grade copper-gold discovery at the Thursday’s Gossan prospect for Stavely Minerals Stavely Copper-Gold Project in Victoria. Very broad zone of copper mineralisation including a significant shallow intercept of 18m at 1.11% Cu intersected in the interpreted near-surface position of the parallel Copper Lode Splay (CLS) in drill hole SMD093: 299.7m at 0.40% Cu from 35m down-hole, including 64m at 0.68% Cu from 35m and 18m at 1.11% Cu from 36m in the interpreted Copper Lode Splay.

Buxton Resources informed shareholders that IGO Limited has commenced on-ground activities for the West Kimberley JV 2020 season. Diamond drilling has commenced at Merlin and ground EM will commence this week at Quick Shears. IGO has provided the following updates to Buxton which includes a new EM plate has been identified from the 2019 low temperature SQUID survey at Merlin. This anomaly is directly down plunge from the high tenor magmatic sulphide intersection (2.19m @ 4.6% Ni, 1.37 % Cu & 0.12 % Co from 236.0m). Modelling of this anomaly has returned two overlapping targets, a 125m x 90m 10,000S conductance plate and a 110m x 90m 9,700S conductance plate.

Horizon Minerals provides an update on the Nimbus silver-zinc project, adjacent to the Boorara gold mine, 15km east of Kalgoorlie-Boulder in the goldfields of Western Australia. Past production between 2003 and 2007 recovered 3.6Moz silver from the processing of 320kt grading 352g/t Ag with the plant now decommissioned, removed and the site rehabilitated. The current global Mineral Resource estimate stands at: 12.1Mt grading 52g/t Ag for 20.2Moz of Silver and 0.9% Zn for 104kt zinc. A high grade lode exists within this resource immediately below the historic Discovery Pit and has a Mineral Resource estimate of  260kt grading 774g/t Ag for 6.4Moz silver and 12.8% Zn for 33kt zinc.