Nov 19, 2024

Waratah Minerals Hits 70m @ 1.00 g/t Au at Dalcoath Zone, Spur Project, New South Wales

Introduction:

Waratah Minerals Limited (ASX: WTM) (Market Cap: $49M | Last Close: $0.24 | Cash: $4M) has reported significant gold intercepts from its ongoing drilling program at the Spur Project in New South Wales' Lachlan Fold Belt, highlighted by 70m @ 1.00 g/t Au from 119m.

Drill Results:

70m @ 1.00 g/t Au from 119m (including 6m @ 2.59 g/t Au from 126m) (SPRC028)
10m @ 1.64 g/t Au from 78m (including 1m @ 14.4 g/t Au from 80m) (SPRC028)
104m @ 0.16 g/t Au, 0.07% Cu, 27.96 ppm Mo from 189m (including 14m @ 0.15 g/t Au, 0.13% Cu, 65.42 ppm Mo from 189m) (SPRC026)
57m @ 0.31 g/t Au, 0.08% Cu from 0m (SPRC025)‍
15m @ 0.72 g/t Au from 66m (including 1m @ 7.06 g/t Au from 67m) (SPRC027)

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Project Overview:

The Spur Project (EL5238) is located 5km west of Newmont Corporation's Cadia Valley Project in New South Wales. The project is hosted in equivalent Late Ordovician aged geology of the Molong Belt within the wider Macquarie Arc, considered a Tier 1 jurisdiction for gold-copper porphyry exploration.

Waratah's exploration strategy targets the margins of the main early-stage intrusive complex for wallrock-style epithermal-porphyry mineralisation. This approach is supported by the importance of similar settings at major deposits in the Macquarie Arc, including Cadia (>50Moz Au & 9.5Mt Cu), Cowal (9.6Moz Au), and Boda (6.4Moz Au & 1Mt Cu).

Program Details:

The company has completed 40 RC drillholes totaling 9,238m to date, with results received from a further 6 holes and results pending for 10 holes. The program has been extended by an additional 12 holes based on encouraging results. Drilling has focused on testing several zones of epithermal gold mineralisation and investigating a potential link with a gold-copper porphyry system. High-resolution ground magnetic data collected at 50m line spacing has revealed a structurally complicated architecture, highlighting several possible faulted extensions to mineralised zones.

Understanding These Results:

The reported intersections represent significant extensions of gold mineralisation at the Dalcoath Zone. The broad zones of anomalous molybdenum associated with porphyry-related alteration at Dalcoath may represent an important porphyry vector within the system. The coincidence of K-feldspar + albite + tourmaline, pervasive albite-silica-hematite (Inner-propylitic), and skarn porphyry alteration with high-grade epithermal veins/stringers indicates the epithermal gold mineralisation at Spur may represent the upper-levels of a preserved wallrock-style epithermal-porphyry system.

The high-grade intercepts, such as 1m @ 14.4 g/t Au from 80m in SPRC028, demonstrate the potential for significant gold grades within the broader mineralised envelope. The molybdenum-rich mineralisation in SPRC026 (104m @ 0.16 g/t Au, 0.07% Cu, 27.96 ppm Mo from 189m) suggests proximity to porphyry-style mineralisation.

Management Commentary:

Waratah Managing Director, Peter Duerden:

“Waratah’s RC drilling continues to map out the extents of the Spur epithermal-porphyry system with further intercepts of shallow gold mineralisation reported across the now >1km long target zone. We are also encouraged to see broad zones of anomalous molybdenum associated with porphyry related alteration at Dalcoath as we build our understanding of the broader epithermal-porphyry system”

Next Steps & Catalysts:

The company is continuing its RC drilling program at the Spur Project, with results pending for 10 holes and an additional 12 holes planned. Current exploration includes RC drilling at Antwerp and Frillback, with additional drilling planned for the Scooby area.

Diamond drilling is currently targeting extensions at Falcon and Antwerp. Regionally, aircore drilling is underway in the Lowe area on the Egina JV, with additional aircore, RC, and diamond drilling planned for West Yule and the Egina Joint Venture.

Commodity Outlook:

Gold serves multiple markets, including investment assets, central bank reserves, jewellery manufacturing and industrial applications in electronics. Currently trading at US$2,612/oz (November 19, 2024), the metal has experienced record highs in 2024 despite recent volatility linked to U.S. political shifts and Federal Reserve policy expectations.

Gold and copper continue to maintain strong fundamentals in the global market. The Lachlan Fold Belt represents a premier mining jurisdiction with established infrastructure and a supportive regulatory environment for resource development. The region hosts several world-class gold-copper deposits, underscoring its potential for further significant discoveries.

Conclusion:

The latest results from Waratah Minerals' Spur Project demonstrate the potential for a significant epithermal-porphyry system. With mineralisation remaining open and multiple targets still to be tested, the project continues to show characteristics of a promising gold-copper system with substantial growth potential. The company's strategic focus on the margins of the Cargo Intrusive Complex for wallrock-style epithermal-porphyry mineralisation appears to be yielding positive results, positioning Waratah for potential future resource delineation.

Sources:

WTM Drill Results Announcement

Additional Figures:

Australia

ASX

Gold

Nov 2, 2024