IGO Detects Gold, Whilst Digging Deeper Into Nickel and Copper

  • IGO finds promising shallow mineralisation of gold around the Themis Prospect
  • Drilling continues at West Kimberly Exploration site
  • Australian Nickel Conference shows off potential sites and nickel and copper profitability

In the past two weeks, IGO Limited (ASX: IGO) has released multiple announcements concerning joint ventures with both Buxton (ASX: BUX) and Rumble Resources (ASX: RTR), as well as giving an update at the Australian Nickel Conference. The Thunderstorm JV Project in the Fraser Range is 70 per cent owned by IGO and 30 per cent by RTR and has become a focal point for operational activity. Air-Core (AC) drilling in the project area has uncovered a new shallow high-grade gold intersection in the area.

The Themis Prospect within the JV showed a mineralisation body 16 meters long and 42 meters down from the surface with 6.69 gold grams per tonne detected. This discovery is 50 meters southeast from an initial discovery hole, with an even higher grade of 9.15 g/t discovered at 48 meters down, with a mineralisation body of 6 meters. This indicates a primary source is close by. Thus, reconnaissance via AC drilling was called for, over the entire Thunderstorm Project area: a 1500m by 400m area. This drilling has shown great promise for many more deposits.

The Thunderbolt Project which is 100 per cent owned by RTR lies south of the IGO tenure which has been assessed via an airborne magnetic survey. The survey showed promising gold mineralisation structures in areas controlled by both RTR and IGO. No drilling has taken place, yet given this survey, investors should keep a close eye on developments. Both Thunderstorm and Thunderbolt projects have signs of high grade, shallow gold deposits and have great promise for both RTR and IGO. Looking at IGO Thunderstorm project digs, there have been widespread gold anomalisms under 100 meters down, with mineralisation ranging between 3 meters and 16 meters.

Additionally, IGO is funding a joint venture with BUX in the West Kimberley Exploration site. 2675 meters of diamond drilling across 3 holes have been completed with further exploration to continue. IGO is funding and managing all project developments in this particular JV. There has been weak to moderate mineralisation between the 400m and 830m mark in drill hole 20WKDD002. The next drill hole 20WKDD0001, also did not yield positive results at expected depths. The third drill hole 20WKDD003 is currently at 888m down and will continue until around 1100m with surveys to be assessed.

On the 6th of October, IGO attended the Australian Nickel Conference and presented the other side of their business, namely Copper and Nickel. The Nova Project has exceeded guidance, with 13,772 tonnes of copper produced, and 30,436 tonnes of nickel produced. The Tropicana mine has also performed very well, with IGO owning a 30 per cent stake of the 141,169oz produced in FY20. The company also detailed future prospective mines and a dedication to sustainability.

The above market analysis and news was provided by Michael Kodari from KOSEC securities. Michael is a philanthropist and a prominent expert in the stock market, CNBC Asia has referred him to as “the brightest 21st century entrepreneur in wealth management” and “a trailblazer within the Australian stock market”.