Gold explorer Vector Resources is building some momentum at its Gwendolyn prospect near Southern Cross, with the release of a series of high-grade drilling intercepts in recent months.
But if the market scuttlebutt is to be believed, some better, bonanza-like assays are in the offing, as early as today.
West Perth-based Vector went into a trading halt yesterday, citing the release of new and “significant” results from its third-phase reverse circulation drilling program over Gwendolyn, 200km north of Southern Cross.
One hole is believed to have returned about 1000 grams a tonne gold, albeit over only 1m, as well as 200g/t over 5m. Other holes are said to have offered up intercepts of more than 10g/t over decent intersections.
Most of the results are sourced from outside Gwendolyn’s modest existing resource of 106,000 ounces in the inferred category (1.2 million tonnes at 2.71g/t), reinforcing expectations of an upgrade, and the mineralisation remains open in all directions.
Vector is looking to at least double and harden up the resource base with the aim of developing a stand-alone mining operation or tying Gwendolyn to its Mt Dimer project, which has 70,230oz, the lion’s share inferred.
The company had $4.3 million in cash at the end of March, but with a spend of $2.8 million expected this quarter, it will likely need to tap equity markets this year to maintain momentum.
Meanwhile Matilda Zircon has secured the final approvals needed for its Keysbrook mineral sands project, south of Perth, paving the way for negotiations over funding.
The company, which recently stitched up a processing alliance with the Japanese-owned Doral, wants Keysbrook in production in the second half of next year.
The written final orders from the State Administrative Tribunal provide for an eight-year mine life.
Moving to nickel, and a shortfall on Poseidon Nickel’s $20 million rights issue is set to swell Andrew Forrest’s holding of five million shares.
One of Forrest’s family companies underwrote the almost one-for-one rights issue, which will help fund Poseidon’s redevelopment of the Mt Windarra nickel project.
The issue closed with a shortfall of 39 per cent, a creditable result given the recent aversion to small and mid-cap minerals companies.