Big boys’ exploration success in WA’s Paterson....30 Oct 2020 06:30
...fuels drilling frenzy among army of juniors - Barry Fitzgerald
The field season in this remote province is in full flight, offering investors leverage in abundance. Plus, former analyst helps kaolin IPO and WA iron ore junior Fenix set for first sales in new year.
There has been more gold and copper found in WA’s remote Paterson province in recent times than anywhere else in the country...
...Also in the Paterson, the Newcrest/Greatland joint venture has been pumping out impressive high-grade gold-copper exploration results at the Havieron discovery.
Results announced this week included 116.2m grading 2.6g/t gold and 0.65% copper from 607m and 120.7m grading 9.3g/t gold and 0.18% copper from 1,349m.
It is deep all right but such is Newcrest’s confidence in Havieron – and its ability to become a supplementary feed source for the hungry treatment plant at its Telfer operation some 45km to the west – the company has flagged an initial inferred resource will be announced this quarter.
Newcrest is also progressing the approvals process to start an exploration decline at Havieron by the end of this (calendar) year, or early in 2021.
Take what is known to have been found at Winu and the upside there, along with what is yet to be announced by the Newcrest/Greatland joint venture at Havieron, and there is little wonder that the Paterson has become an exploration hotspot.
As impressive as Winu looks, it is debatable if it can move the needle much for Rio given the scale of its market cap.
Confirmation of a big resource at Havieron could be market moving for Newcrest though as it has its own in-ground value, as well as value implications for Telfer.
That’s all very interesting but today’s focus is othe bunch of ASX-listed juniors active in the Paterson where the field season is in full flight. They are involved in the hunt for the next Winu or Havieron, often with mining majors like Rio, Newcrest and others footing the bill.
Leverage to Winu and Havieron-type success would obviously be extreme for the juniors, even where their joint ventures with the majors have reduced their exposure to something less than 100%.
The London-listed Greatland demonstrates the point.
A junior before it got the ball rolling at Havieron with some high-grade hits that enticed Newcrest to enter the joint venture under which it is earning a 70% stake, Greatland is now a $A1.65 billion company.
https://www.livewiremarkets.com/wires/big-boys-exploration-success-in-wa-s-paterson-fuels-drilling-frenzy-among-army-of-juniors
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