MiningNews.net<\/h3>\n

BREAKER Resources executive chairman Tom Sanders says the Lake Roe project outside Kalgoorlie is Australia\u2019s only pre-development greenfields gold discovery.<\/p>\n

Last month, the company released a maiden resource for the Bombora deposit of 11.8 million tonnes at 1.6 grams per tonne gold for 624,000 ounces of gold.<\/p>\n

Since then, Breaker shares have fallen from A51c to as low as 24c.<\/p>\n

Sanders told the Resources Rising Stars conference on the Gold Coast that the expectations of some weren’t met.<\/p>\n

“The market is an irrational beast,” he said.<\/p>\n

“But it’s not a straight run. It’s an interim resource, a partial resource – it’s early days.”<\/p>\n

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Sanders noted that since the resource was released, Breaker had returned 13 hits outside the resource.<\/div>\n<\/div>\n<\/div>\n<\/div>\n

“We have four rigs currently and that resource is growing quickly,” he said.<\/p>\n

“We are well-endowed with gold.”<\/p>\n

Breaker is aiming to reached 700,000-800,000oz in the interim.<\/p>\n

“It’s enough, we believe, for a standalone mine,” Sanders said.<\/p>\n

“There’s not many companies in that position.”<\/p>\n

Sanders defended questions around the continuity of the mineralisation.<\/p>\n

“It hangs together very well,” he said.<\/p>\n

With the resource grade also disappointing some, Sanders is confident of achieving an average grade of 2gpt gold.<\/p>\n

“The resource is limited by the extent of the drilling,” he said.<\/p>\n

“We keep drilling this thing and it keeps getting better.<\/p>\n

“We’ll be drilling this, I believe, for 10 years.”<\/p>\n

The company’s exploration target is 1.2 million ounces down to 400m depth.<\/p>\n

“That exploration target is conservative by nature – I’m conservative by nature,” Sanders said.<\/p>\n

Sanders said the potential of the Lake Roe project hadn’t changed, despite the market reaction.<\/p>\n

“I’m coming out and calling this a major gold discovery,” he said.<\/p>\n

“I expect to make this call only once in my career because it is rare.”<\/p>\n

While Sanders said the market was not ascribing any value to further exploration upside, Lake Roe was likely to be a company maker for Breaker.<\/p>\n

“This is a judgement call but it’s from 40 years of experience,” he said.<\/p>\n

Breaker shares last traded at 28c, but Sanders pointed to Bell Potter’s price target of 96c.<\/p>\n

“In our view the hammering of the Breaker share price represents a mismatch in the market where risk has been reduced and reward has gone up,” Bell Potter analyst David Coates said earlier this month.<\/p>\n

“The maiden resource was a major de-risking event and while it clearly did not meet the expectations of some corners of the market, it set a foundation consistent with the discovery of a significant, economically attractive greenfields deposit with plenty of scope for further growth.”<\/p>\n","protected":false},"excerpt":{"rendered":"

MiningNews.net BREAKER Resources executive chairman Tom Sanders says the Lake Roe project outside Kalgoorlie is Australia\u2019s only pre-development greenfields gold discovery. Last month, the company released a maiden resource for the Bombora deposit of 11.8 million tonnes at 1.6 grams per tonne gold for 624,000 ounces of gold. Since then, Breaker shares have fallen from […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1],"tags":[],"yoast_head":"\n