Breaker Resources is back in the good books with investors after lifting the resource at its Bombora gold deposit above the psychologically significant one-million-ounce mark.<\/p>\n
Shares in the Tom Sanders-led explorer surged almost 25 per cent yesterday after it announced a 74 per cent jump in its indicated and inferred resource to 24.6 million tonnes at 1.4 grams per tonne for 1.08Moz.<\/p>\n
The inventory at the site 100km east of Kalgoorlie includes a high-grade core of 12.5Mt at 2g\/t for 808,000oz.<\/p>\n
Yesterday\u2019s share price reaction is in stark contrast to investors\u2019 response in April when Breaker announced a maiden resource of 11.9Mt at 1.6g\/t for 624,000oz.<\/p>\n
Punters who had been hoping for a figure closer to 1Moz savaged the stock at the time.<\/p>\n
Mr Sanders said the company would continue drilling with three or four rigs on site to expand the resource while also pursuing a pre-feasibility study based on an open pit development with a standalone processing plant.<\/p>\n
He noted 800,000oz of the known Bombora resource was within 150m from surface. But Breaker also plans to assess the underground mining potential of the deposit once it determines the lower limit of economic open pit mining.<\/p>\n
\u201cWith Bombora, we started knowing nothing and now we\u2019re starting to build a picture,\u201d Mr Sanders said. \u201cThis is unmistakably reflected in the improving discovery cost of $18\/oz compared to $23\/oz for the maiden resource in April.\u201d<\/p>\n
Bell Potter senior resources analyst David Coates said the resource upgrade was consistent with his expectations.<\/p>\n
\u201cWe think this is a horse definitely worth sticking with,\u201d he said.<\/p>\n
Breaker shares rose 5.5\u00a2 to 28\u00a2 yesterday, still well shy of the 80\u00a2-high the stock reached just over a year ago when high-grade drill hits heightened investors\u2019 hopes for a 1Moz maiden resource.<\/p>\n
Mr Coates said he expected a re-rating of the stock on the back of yesterday\u2019s upgrade but admitted the market was tougher now than it was last year.<\/p>\n
\u201cI think this is the kind of result that will make people reassess the company, its valuation and its long-term prospects,\u201d he said.<\/p>\n
\u201cIt\u2019s the most compelling greenfields discovery in the market.\u201d<\/p>\n
Mr Coates described Bombora, part of the company\u2019s broader Lake Roe project, as a strategic asset. He said the deposit\u2019s location, grade, proximity to surface, size and growth potential would put it on the radar of bigger players.<\/p>\n
Lake Roe is about 60km south of Saracen Mineral Holdings\u2019 Carosue Dam mine and 50km north-east of Silver Lake Resources\u2019 Mt Monger operations. Bell Potter has a \u201cspeculative buy\u201d rating on the stock and a price target of 92\u00a2.<\/p>\n","protected":false},"excerpt":{"rendered":"
The West Australian Breaker Resources is back in the good books with investors after lifting the resource at its Bombora gold deposit above the psychologically significant one-million-ounce mark. Shares in the Tom Sanders-led explorer surged almost 25 per cent yesterday after it announced a 74 per cent jump in its indicated and inferred resource to […]<\/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