Barry Dawes of Martin Place Securities explains why he likes Siren Gold.
Mermaid Gold (SNG:ASX) has high quality gold and antimony deposits in New Zealand. The Reefton goldfields extend for 50km. It could contain around 5% of the world's antimony resources.
Drilling is focused on the development of several high-grade deposits. Drilling at Auld Creek is delivering exceptional grades. Drilling at Sams Creek resumes this June quarter. New Zealand has fast-track programs, including SNG's Reefton and Sams Creek projects.
Key points
Auld Creek
- Bonanza Shoot book
- ACDDH016 22.2m at 7.2 grams per tonne gold (g/t Au) and 0.3% antimony (Sb) over 67m (10m actual width) — announced yesterday
- ACDDH015 12.4 m at 5.3 g/t Au and 14.9% Sb over 69 m (true thickness 6 m) — earlier in March quarter
- Fraternal Shoot book (cross-referenced in the same hole)
- ACDDH015 23.0m at 4.0g/t Au and 0.22% Sb
- Resource upgrade of 66 koz at 3.5 g/t Au and 8.7 kt at 1.5% Sb expected later in 2024
Sams Creek
- Soil sampling by ion leaching has been expanded and the Anvil prospect has been improved
- Next stage of drilling in progress.
Expedited procedure in New Zealand
- New government announces fast-track processing and includes Reefton and Sams Creek
- These projects are recognized as significant resource developments
Siren Gold is an active explorer in New Zealand's South Island with its Reefton Gold and Antimony project and Sams Creek Gold porphyry dam.
The Reefton Project is developing into a series of high-grade underground resources that will feed a central plant.
The current focus is on the Auld Creek prospect, where 132 kozAuEq have been defined in high-grade gold and high-grade antimony reefs.
Auld Creek
Auld Creek runs 700 meters from north to south and is divided into the Fraternal and Bonanza Shoots. Siren has drilled two diamond holes in 2024 and plans to complete the eight-hole program this year. The results to date have been very encouraging and should secure a larger resource than the 132 koz AuEq to date. The importance of antimony is increasing and there is a global search for new antimony deposits outside of China.
This Reefton region could contain up to 5% of the world's antimony resources.
Sams Creek
The Sams Creek Gold Project is located 140 km northeast of Reefton and 100 km northeast of Lyell. The mineralization is contained within a hydrothermally altered peralkaline granitic porphyry dyke.
The Sams Creek dyke is up to 60 m thick and can be traced west-west for more than 7 km along its strike. The dyke generally dips steeply to the north with gold mineralization extending for at least 1 km and is open at depth.
Sams Creek has a resource of 820 koz at 2.8 g/t. Sampling of ionic soil during the quarter on the Anvil prospect, to the east and outside of the current resource, was encouraging. Drilling resumed during the quarter.
Sams Creek Project
SNG has already reported a target of 2.5-3.0 Moz within 24 months.
SNG Coin tilted down – currently being resolved at the top of the rise.
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