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News.com.au
15-07-2025
- Business
- News.com.au
Following in the footsteps of De Grey – who will find the next Pilbara gold monster?
After De Grey's $6bn sale, juniors a lining up to find the Pilbara's next Hemi Soon to be one of Australia's largest gold mines, explorers are confident the region has more to give New Age, Peregrine, Artemis and more among the hot gold hunters in the district The Pilbara is renowned for its world-class iron ore deposits and has more recently become a lithium hot spot. But the rising gold price has put its precious metals cargo on the map as well. While there are existing gold mines in the region, like the Mark Creasy owned Warrawoona, Black Cat Syndicate's (ASX:BC8) Paulsens and Capricorn Metals' (ASX:CMM) Karlawinda, it was De Grey Mining's (ASX:DEG) 2020 discovery of Hemi that really cemented its gold status as a gold hotspot, more than two years on from the flash in the pan 'conglomerate gold rush'. Hemi and the surrounding deposits within De Grey's Mallina project have since grown to 13.6 million ounces of gold at 1.4 grams per tonne. And now, record gold prices and Northern Star Resources (ASX:NST) $6 billion acquisition of De Grey has kicked off a swathe of M&A activities in the area this year – shining a spotlight on the Pilbara's gold potential. Gold juniors with a play in the region are all building cases as to why they could be on to the next Hemi. One is New Age Exploration (ASX:NAE), where executive director Joshua Wellisch says the company is so confident it has streamlined its assets to focus on the Wagyu project, which sits adjacent to – and along strike – from Hemi. 'It's the only project that has produced results thus far that look anything like Hemi,' he said. 'With the location directly along strike, we have a very good chance of finding a substantial deposit there.' The company has confirmed Hemi style rocks thanks to recent aircore and reverse circulation drilling, with assays up to 28.6g/t. Wellisch says this reinforces the project's parallels to the discovery process at Hemi, where shallow oxide mineralisation guided targeting of deeper, high-grade zones. 'We were also able to fast track the project in about 9 months, benefitting from DEG's 20 years of exploration work at Hemi,' he said. 'We knew what processes and what steps to take to firm up the initial targets and followed that through with aircore drilling to establish the initial gold mineralisation. 'We're sitting on intermediate intrusive in all of the targets and now what we're seeing is a highly gold mineralised supergene blanket across multiple targets which provides the pathway for us to vector in on where the gold mineralisation at depth is. 'Like Hemi was, we're seeing exactly what they did in the early days.' Earlier this month the company announced the sale of the Lochinvar project in the UK to focus resources on Wagyu. The next round of drilling will aim to expand gold-enriched supergene zones and to further test deeper primary mineralisation. 'As we move into the next stages of drilling we'll be able to push deeper and take a more refined approach in terms of our targeting,' Wellisch said. 'We want to expand on the supergene gold mineralisation, which is shallow – that in itself may represent an economic deposit – and then we'll look to vector in on the gold mineralisation at depth and find ... Hemi 2.0.' Wellisch notes that Hemi is made up of six individual deposits, so even if NAE had 2 or 3 similar deposits you could be talking multiple million-ounce deposits. 'The opportunity is really significant at this market cap,' he said. A number of other companies have active gold drill programs going on in the Pilbara. Artemis Resources (ASX:ARV) This year ARV kicked off a fresh exploration strategy with the appointment of new managing director Julian Hanna. He was the brains behind the early growth of Western Areas from an explorer into a leading Australian nickel producer, which was eventually acquired by IGO (ASX:IGO) for $1.3 billion in 2022. That stunning success was followed up by the development and sale of MOD Resources to Sandfire Resources (ASX:SFR), now the owner and miner of MOD's Motheo discovery in Botswana's Kalahari copper belt. Hanna previously told Stockhead he was attracted to Artemis' Pilbara portfolio, and he's wasted no time getting exploration up and running at Karratha. He reckons Artemis could have a slice of the Hemi action at the western end of the belt, where the Carlow deposit sits with its resource of 8.74 million tonnes at 2.5 grams per tonne gold equivalent for 704,000 ounces of AuEq, or 374,000oz of gold, 64,000t of copper and 8000t of cobalt. Five diamond holes for 1790m were completed last quarter, and returned hits of up to 15.3g/t gold. A further 3800m of diamond drilling is in the works now, with 1500m of RC drilling underway at the Titan target along with a gravity survey over the Cassowary Intrusion east of Kalgoorlie, where ARV is chasing Iron-Oxide-Copper-Gold mineralisation. Moving to technical studies is the next goal to progress Carlow towards possible feasibility and early development stages. Peregrine Gold (ASX:PGD) At the Mallina project near Hemi, PGD has appointed highly experienced geologist Matt Rolfe as exploration manager. His previous roles include as the senior geologist managing Northern Star Resources' Pilbara exploration program. The company has its eye on a whopping 40 priority targets for intrusion hosted 'Hemi style' and other orogenic gold deposits, as well as 6 targets analogous to Chalice Mining's 'Julimar type' Ni-Cu-PGE deposits. PGD believes there are further Hemi style discoveries to be made in the Mallina Basin and with numerous targets already identified, Matt's expertise and knowledge of the region gives them the best chance to unlock the potential of the project. The company is now in the final stages of planning for a substantial 10,000m Aircore drilling program to test the majority of these priority gold and Ni-Cu-PGE targets as well as other Cu-Zn-Pb-Ag-Au targets identified in historical drilling. Back in Feb, the junior identified 12km of strike at its Tambourah project, with rock chips returning up to 101g/t gold. The project was originally acquired for its lithium potential in the northwest corner of the tenement, but its gold potential is just becoming properly understood. The area has always been highly prospective for gold, with gold being discovered there in 1891, which resulted in a gold rush. The company is planning further rock chip sampling to refine drill targets. Novo Resources (ASX:NVO) Novo was the company that originally inspired the long-forgotten conglomerate gold rush, surging to ridiculous highs in the Canadian market for its theory that watermelon seed shaped nuggets found in the Pilbara were evidence of a historical link between the region and the Witwatersrand Basin in South Africa, the world's most productive gold field. Not so, the story didn't hang together. But Novo had collected a massive tenement package it brought directly to the Australian market in a 2023 dual listing. Novo had De Grey (now Northern Star) engaged on a JV at its Egina project next to Hemi, but also holds a host of tenements in the region either 100% or in JV with groups like Peregrine, Creasy and lithium giant SQM. Most recently, the company's attention has been turned to its Tibooburra and John Bull project in New South Wales, but it has been working up gold and antimony targets at Balla Balla and Sherlock Crossing.
West Australian
10-07-2025
- Business
- West Australian
X marks the spot for Pacgold's big bulls-eye gold target near Cairns
Pacgold Limited has unveiled a multi-million-ounce lookalike target at its Alice River gold project in Far North Queensland. Based on the results of high-intensity induced polarisation (IP) surveys, the company's geologists are drawing parallels between the lookalike and the nearby 5-million-ounce Mt Leyshon gold deposit. Pacgold says the latest anomaly at its White Lion prospect perfectly aligns with a previously identified 'bullseye' magnetic anomaly, with the increased target confidence inferring a potential major gold discovery. The prospect is setting pulses racing as the company gears up to drill test its target for the first time in the December quarter this year. White Lion sits just 500 metres south of the 30-kilometre-long Alice River fault zone. It has emerged as a priority target after an extended IP survey revealed a robust chargeability feature sitting atop a doughnut-shaped magnetic anomaly at 200m depth. Spanning more than 1.5km by 1km, the anomaly is further spiced up by coincident resistivity lows, hinting at sulphide-rich or clay-altered zones akin to those that made Mt Leyshon a tier-one gold-hosting system. A magnetic low southwest of the anomaly, potentially linked to magnetite-destructive phyllic alteration, only strengthens the comparison. Surface mapping has already uncovered a 250m-long outcropping quartz breccia at White Lion, with historical shallow drilling from the 1980s confirming anomalous gold along its extent. The heart of the magnetic anomaly remains untouched by the drill bit, leaving Pacgold with a tantalising untested target that's screaming for exploration. The company's IP survey has also pinpointed multiple resistivity anomalies lining the Alice River fault zone, mirroring gold-bearing structures seen at Pacgold's Central, Southern and Posie prospects to the northwest. Pacgold is wasting no time trying to capitalise on its breakthrough, with heritage clearances now underway to unlock drilling across the 1.5km by 1km target zone. To sharpen its aim, the company is running pole-dipole IP surveys over the central White Lion area, with results due by late July to further refine drill targets. Meanwhile, a broader regional IP program is mapping an 8km stretch of the fault zone, hunting for structural jogs and dilation zones that could host more gold systems like the company's 470,000 ounces of gold grading 1.0 grams per tonne (g/t) at Central. The Alice River project sprawls across 377 square kilometres in the gold-rich North East Queensland province, which sits alongside multi-million-ounce monsters such as the Pajingo, Kidston and Ravenswood gold systems. Management is eager to draw parallels between the project's 854,000-ounce intrusion related gold system and its potential to rival global heavyweights, such as Fort Knox in the United States and DeGrey Mining's 9.5-million-ounce Hemi discovery in Western Australia. With only 5 per cent of the Alice River fault zone's mineralised strike tested to date, Pacgold is chasing a district-scale prize that could redefine its place - and share price - in the gold exploration game. The company was recently backed by a chunky $5.6 million capital raise that included the likes of resources heavyweights such as Acorn Capital, Resource Capital Funds and resources broker Argonaut. The raise will power a 10,000m reverse circulation drilling program across Central, Posie, Southern and other regional targets, such as Victoria and Jerry Dodds. The White Lion will have to wait for now, but if the Mt Leyshon analogy holds, Pacgold could be on the cusp of uncovering a multi-million-ounce system that lights up the ASX and Queensland gold exploration to rival the insatiable WA market. Is your ASX-listed company doing something interesting? Contact:
News.com.au
13-06-2025
- Business
- News.com.au
Barry FitzGerald: Kairos picks right time to ramp up Pilbara gold exploration
'Garimpeiro' columnist Barry FitzGerald has covered the resources industry for 35 years. Now he's sharing the benefits of his experience with Stockhead readers. Garimpeiro's memory is a bit fuzzy on the exact date he had a coffee with Simon Lill in Melbourne's Bank Place. But it was likely early 2019 and Garimpeiro remembers being a bit grumpy that the catch-up with the then executive chairman of De Grey Mining wasn't scheduled for the PM rather than the AM so it could have taken place in the Mitre Tavern just down the alley. Thanks to the cleat head though, Garimpeiro remembers De Grey was trading at less than 10c share for a market cap of about $40 million and that Lill was enthusiastic about growing the company's gold resource at its Mallina gold project in the Pilbara. His enthusiasm proved well placed. Late in 2019, De Grey made the intrusion-related Hemi discovery which has grown to more than 11 million ounces, making Mallina 13.5Moz all up after the pre-Hemi shear-hosted gold resource is included. Northern Star Resources (ASX:NST) has just made De Grey and its Pilbara gold riches its own with an agreed $5 billion scrip takeover bid which ended up being a $6 billion takeout due to rising gold prices pushing Northern Star scrip higher. Lill was there all the way through De Grey's journey from an overlooked junior gold explorer in the then unfashionable Pilbara – for gold at any rate – through to the last day when De Grey shareholders voted through the Northern Star takeover in April. Any way it is sliced, the De Grey journey over the last six years has been one of the biggest single valuation creation exercises in the ASX gold space. It wasn't a 10-bagger. It was a 150-bagger, if you don't mind. Lill is the first to say it was a team effort. And it was. Coming from a stockbroking and capital markets background, his main contribution was bringing in the small licks of capital to keep the lights on during the hungry years, and then the big licks needed to advance the Hemi discovery to the point where Northern Star had to buy it. Back in black Garimpeiro would be content after an achievement like Lill's at De Grey to hold court at the front bar at the Mitre and not do much else. But that's not for Lill. He is back as a chairman guiding another Pilbara gold stock – Kairos Minerals (ASX:KAI). For a couple of years, when the Pilbara conglomerate gold story was running hot, and another couple of years when lithium was the thing, Kairos took its eye off its Mt York gold project. Those distractions left the stock with few followers. But starting in May 2022 when veteran geologist Peter Turner became manager director, Mt York is now getting the attention it deserves. And now with Lill as non-executive chairman, Kairos is likely on a re-rating pathway. Mt York deserves attention all right. It stands as a 1.4 million ounce resource in a single pit shell (43Mt grading 1g/t). The mineralisation is of the banded iron formation (BIF) style which makes it different to Hemi, 55km to the north-west. But as experienced miners will tell you, the style doesn't matter as long as there is plenty of gold to be had. Geological comparisons for Mt York include Karlawinda in the Pilbara and Mt Gibson in the Murchison, the two gold deposits that underpin Capricorn Metals (ASX:CMM) $4 billion market cap. Major exploration program Mt York is better grade than both of those but it has a long way to go to catch them in terms of resource ounces. The biggest exploration program ever undertaken by Kairos is now underway, with a likely first target being to grow Mt York to something more than 2Moz. Helping the cause is pending access for Kairos to a 1500m extension of the mineralisation as it trends into its neighbour's ground – Pilbara Minerals, and its Pilgangoora lithium operation. An earlier deal between Kairos and Pilbara involved Pilbara agreeing to a $20 million payment for some non-core Kairos tenements. The first $10m instalment is helping fund the record exploration effort at Mt York. The exploration effort will likely lead to an increased mineral resource estimate update later this year – a sure fire re-rating event. Kairos could certainly do with a re-rating event. At its mid-week price of 2.8c a share it is has a market cap of $73.6 million. Based on the existing 1.4Moz resource estimate, it has one of the lowest enterprise value-to-resource ounce metrics in its ASX peer group. That is despite a scoping study in November last year outlining a $276 million project producing 115,000oz annually at an all-in sustaining cost of $2205/oz. Using a conservative $3500/oz gold price, the pre-tax net present value (NPV) was put at $410 million and capital payback was put at 2.7 years. Gold is now $5100/oz or thereabouts. Plug that into the financial model and Garimpeiro estimates a NPV of around $1 billion and a payback period well short of two years. That makes Kairos' current market look to be on the mean side of things. That's particularly so when Mt York gets juiced up by the additional ounces expected to come from the big exploration push now underway.
Yahoo
29-05-2025
- Business
- Yahoo
Westgold appoints Ivan Mullany as Independent Non-Executive Director
PERTH, Western Australia, May 29, 2025 /CNW/ - Westgold Resources Limited (ASX: WGX) (TSX: WGX) – (Westgold or the Company) is pleased to announce the appointment of Mr Ivan Mullany as an Independent Non-Executive Director to the Board, effective immediately. Mr. Mullany (BSc, Majoring in Extractive Metallurgy, CIMM, FAusIMM), has over 35 years in mining project management with broad international experiences. Most recently, with Newmont Corporation and its predecessor Goldcorp Inc. on the Senior Leadership Team, Mr. Mullany led numerous major projects, collectively in excess of $18 billion, during the engineering study, construction and execution stages. In Australia and most recently, Mr Mullany was appointed Chair of the Hemi Gold Project Committee at De Grey Mining Limited (ASX:DEG), where he provided strategic oversight of the Project Execution Plan for the proposed Hemi development, prior to the takeover by Northern Star. Mr Mullany is currently a Non-Executive Director of Nexgen Energy Ltd and is a Fellow of the Australian Institute of Mining and Metallurgy. Westgold Non-executive Chair Hon Cheryl Edwardes AO commented: "Westgold is delighted to welcome Ivan to the Board. Ivan is a great cultural fit and his extensive operational and project delivery experience will significantly strengthen our Board and strategic planning processes. Our leadership team will directly benefit from his operational excellence background as this is a key to unlocking greater productivity and increasing free cash flow from our expansive Western Australian gold portfolio." This announcement is authorised for release to the ASX by the Board. SOURCE Westgold Resources Limited View original content to download multimedia:
Yahoo
20-05-2025
- Business
- Yahoo
Northern Star completes $192m on-market share buyback
Australian gold mining company Northern Star Resources has announced the completion of its inaugural on-market share buyback programme, valued at A$300m ($192m). The programme, which began on 15 September 2022, resulted in the acquisition of 27.17 million shares at an average price of A$11.04 per share. The total number of securities on issue in the class of securities to be bought back stood at 1.43 billion in September 2022. The maximum number of securities proposed to be bought back was 39.52 million. The buyback initiative is part of Northern Star's strategic approach to capital allocation, aimed at maximising shareholder value. This approach includes a commitment to returning cash to shareholders, investing in organic growth that promises profitability and sustaining a robust balance sheet. The share buyback programme is designed to work in tandem with the company's dividend policy, which has a payout target of 20–30% of cash earnings. The board is assessing all forms of capital management to create 'superior' returns for shareholders. Northern Star managing director Stuart Tonkin said: 'I am pleased that we have completed our $300m share buyback programme. The average purchase price of $11.04 per share demonstrates our disciplined approach to value creation for all our shareholders.' In its first-quarter report, the company announced that it has a robust investment-grade balance sheet and is equipped to fund its organic growth strategy. Despite a dividend payment of A$279m, the net cash position remains at A$181m, with a total of A$1.12bn in cash and bullion in the March quarter of 2025. Earlier this month, Northern Star completed the acquisition of gold mining company De Grey Mining through a court-approved scheme of arrangement. "Northern Star completes $192m on-market share buyback" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
