Nov 7, 2024

Spartan Resources Hits 23.63m @ 2.39g/t Au at New Prospect, Dalgaranga Gold Project, Western Australia

Introduction:

Spartan Resources Limited (ASX: SPR) (Market Cap: $1.66B | Last Close: $1.50 | Cash Position: $83M) has reported significant high-grade gold intercepts from exploration drilling at its Dalgaranga Gold Project in Western Australia, with 23.63m @ 2.39g/t Au including 3.00m @ 11.36g/t Au from a new prospect 110m south of the Pepper deposit.

Drill Results:

23.63m @ 2.39g/t Au from 503.50m including 3.00m @ 11.36g/t Au (New unnamed prospect) [DGDH093]
17.77m @ 14.89g/t Au from 537.22m including 3.24m @ 39.86g/t Au (Pepper deposit) [DGDH086]
13.37m @ 19.16g/t Au from 685.92m including 3.90m @ 56.58g/t Au (Pepper deposit) [DGDH090]
12.00m @ 1.29g/t Au from 37.00m (Arc target) [DGRC1502]
7.00m @ 3.21g/t Au from 144.00m (Patient Wolf target) [DGRC1541]‍
1.00m @ 30.45g/t Au from 105.00m (New prospect east of Patient Wolf) [DGRC1512]

Project Overview:

The Dalgaranga Gold Project is located in the Murchison region of Western Australia, approximately 65km northwest of Mt Magnet. The project includes multiple high-grade gold deposits and prospects along the "Dalgaranga Mineralised Structural Corridor", including the Never Never and Pepper deposits.

The project hosts a combined Mineral Resource Estimate of 2.43Moz at 4.92g/t Au for the Never Never and Pepper deposits. Infrastructure includes a 2.5Mtpa CIL processing plant and associated facilities.

Program Details:

The current exploration program includes surface diamond drilling targeting in-fill and expansion of the high-grade Pepper Gold Deposit, as well as step-out exploration drilling. RC exploration drilling is also ongoing at several other high-grade mineralised prospects across the project area. Underground development of the Juniper Exploration Drill Drive is advancing to provide access for future underground drilling platforms.

Understanding These Results:

The new intercept in DGDH093 represents a potentially significant new discovery 110m south of the Pepper deposit, with similar alteration style to Never Never and Pepper. This demonstrates the potential for additional high-grade zones along the mineralised corridor.

High-grade intercepts from Pepper, such as 17.77m @ 14.89g/t Au in DGDH086, continue to demonstrate the exceptional grades and thicknesses of this deposit. The 13.37m @ 19.16g/t Au hit in DGDH090 extends consistent high-grade mineralization.

Management Commentary:

Simon Lawson, Spartan Interim Executive Chair:

“As systematic in-fill and extensional drilling of the exceptionally high-grade Pepper Gold Deposit continues at pace, the Spartan team has intersected a new zone of visible gold with high-grade assays just 110 metres to the south of Pepper. The intercept position is analogous to the discovery of the Pepper Gold Deposit in April, when we were drilling south of the Never Never Gold Deposit.

“Pepper was discovered by predicting another high-grade fold shoot adjacent to the 1.48Moz @ 8.07g/t gold Never Never Gold Deposit – and it looks like we may be onto another! We are already drilling the follow-up to DGDH093, wedging off the parent hole, and now with a fourth diamond drill rig arriving on site we are targeting this new position as a priority.

“In addition, the other 2-3 diamond drill rigs have finished the in-fill component of the current Pepper Gold Deposit campaign and are now focused on drilling growth holes at depth and along-strike. The team is well on-track to deliver an update to the Pepper Gold Deposit MRE in December and our systematic and disciplined approach to defining value and growth through the drill-bit is working very well.

“Meanwhile, development of the underground Juniper Decline is progressing safely and expeditiously, with advance rates better than anticipated, thanks to our partnership with highly experienced mining contractor Barminco. We are on-track to get underground and start diamond drilling in the first quarter of 2025. Look out!

“Both the Never Never and Pepper Gold Deposits remain open at depth. We are rapidly advancing underground towards Never Never right now and soon we will begin underground drilling. Add to this the potential for even more discoveries in the immediate near-mine environment – all on the doorstep of a fully established modern processing facility and infrastructure – and it’s not hard to see why the Spartan high-grade value proposition is continuing to go from strength to strength.”

Next Steps & Catalysts:

Follow-up drilling of the new prospect south of Pepper is underway, with a fourth diamond drill rig being mobilized to site. The company is on track to deliver an updated Mineral Resource Estimate for the Pepper Gold Deposit in December.

Underground development of the Juniper Decline is progressing well, with over 300m completed to date. Underground diamond drilling is anticipated to commence in the first quarter of 2025, providing access to test depth extensions of the Never Never and Pepper deposits.

Commodity Outlook:

Gold serves multiple markets, including investment assets, central bank reserves, jewellery manufacturing and industrial applications in electronics. Currently trading at US$2,667.19/oz (November 7, 2024), the metal has experienced record highs in 2024 despite recent volatility linked to U.S. political shifts and Federal Reserve policy expectations.

Long-term market dynamics continue to be shaped by central bank purchasing programs, investment demand for safe-haven assets, and consistent jewellery consumption from Asian markets. This price environment continues to support Australian gold producers, particularly those operating in premier jurisdictions like Western Australia's Murchison region, where established infrastructure and a supportive regulatory framework enhance project economics.

Conclusion:

The latest drilling results from Dalgaranga underscore several key developments: a potential new high-grade discovery 110m south of Pepper, consistent high-grade intercepts via infill drilling at Pepper, and successful advancement of the Juniper Decline.

With a resource update due in December, underground drilling set to commence in Q1 2025, and a fully established 2.5Mtpa processing facility, Spartan Resources is advancing multiple value drivers at their flagship project. The recent intercepts, particularly DGDH093 (23.63m @ 2.39g/t Au), demonstrate the potential for additional discoveries along the Dalgaranga Mineralised Structural Corridor.

Sources:

SPR Drill Results Announcement

Additional Figures:

Australia

ASX

Gold

Nov 5, 2024