Just five months into its ASX foray, Great Divide Mining Ltd (ASX: GDM) has identified the potential for lithium and rare earth elements (REE) at the company’s Cape Project within the New Goldfield tenement in Queensland.
To fund its gold and critical metals projects, the company floated on the ASX after a $5 million IPO at an offer price of $A0.21, which was oversubscribed.
Situated within Queensland, Each of GDM’s projects are believed to have “company maker” potential:
Yellow Jack – prospective for gold;
Coonambula – prospective for gold-antimony;
Devils Mountain – prospective for gold; and
Cape – prospective for copper-gold-rare earth
The projects sit across eleven tenements in historical mining areas with past exploration and nearby infrastructure.
At present, GDM shares have been trading at A$0.28, up 33.3% from the offer price (Figure 1).
Figure 1: Share price chart ( Source Listcorp)
Lithium and REE potential
GDM has revealed during its preliminary exploration results, and desktop studies have identified lithium and REE potential at the Cape Project.
Commenting on the find, the company’s CEO Justin Haines said: “Although we are in the infancy of our exploration at New Goldfield, early indications of prospectivity for Lithium and REE are encouraging and present a ‘bonus’ to GDM beyond the priority gold and base metal prospects on this tenement."
Moving forward, the company aims to conduct on-site exploration at New Goldfield across its existing gold and base metals targets, as well as this new lithium and REE opportunities (Figure 2).
Figure 2: Cape Project Location and Major Mines (Source: ASX website)
“Excellent” gold assays from Yellow Jack
In January, the company delivered assays described as “excellent” from its diamond drilling program at Yellow Jack (Figure 3).
Assays from three diamond drill holes have highlighted ‘significant’ gold hits, including:
12 metres @ 2.70 g/t gold from 25 metres depth in the hole, including 6 metres @ 4.15g/t gold from 30 metres depth, and
6.2 m @ 1.1 g/t Au from 80 m depth in hole 23YJDD217
Figure 3: Yellow Jack Project location and major mines
Commenting on these new assay results, Haines said: “We have seen some excellent intercepts from our diamond drilling campaign at Yellow Jack.
“In particular, the intercept of 6m @ 4.15 g/t Au in hole 23YJDD219from 30 m depth indicates that the Gold mineralisation is of higher concentration in certain areas and extends further along strike and at depth than initially anticipated.
“We are undertaking a full 3D interpretation of the Yellow Jack Gold system, which will be completed over the coming weeks, and are now well placed to consider an update of our previously announced JORC Mineral Resource Estimate of over 51,000 oz contained Gold at Yellow Jack.”
Looking ahead
GDM is also continuing with the exploration and assessment of its other projects (Figure 4)
The Yellow Jack geology and mining studies are continuing to assess the project's commercial potential, with results expected in the coming months.
What’s more, planning for exploration works at Coonambula and Devils Mountain is nearing completion in readiness for the commencement of the field season.
Figure 4: Forward plan for GDM’s projects (Source GDM website)
Samso's Thoughts
The GDM story is very typical of the region they are exploring. If you look at Figure 1 and Figure 2, there is evidence of good mineralisation, and there is no doubt that their concepts are valid. This is a gold and copper country, and antimony and molybdenum are commonly associated with mineralisation as well.
I am not a big fan of the lithium and REE story, and I hope the company focuses on gold and copper. The results to date are encouraging, but they are still a distance from discovery. This is not a negative point; it just means there is work to do.
The one issue with the GDM story and that of all aspiring juniors in this place will be the duration required for an economic discovery. The systems are typically tight, meaning they are small and usually complex to define. This means that the hurdles may create less luck than more luck for discovery.
Pacgold Limited (ASX: PGO) is located near the Cape Project with its Alice River Gold project, and it is a good prospectivity comparison. I have just seen its presentation, and it seems that it is on the verge of a decent discovery. I would encourage readers to go and have a look at its presentation and check out the potential.
As always, DYOR, keep an eye out for their announcements.
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