Breaker poised to double, says Canaccord

20th August 2020
Resources Rising Stars

Shares in WA gold explorer Breaker Resources (BRB) are set to double, says broker Canaccord, as the company grows the inventory at its Lake Roe project, 100km from Kalgoorlie.

Analyst Henry Renshaw says Breaker’s new strategy, which is aimed at growing the 1Moz resource, was working.

“Breaker continued its efforts to deliver resource growth, focussing on three areas outside the existing 1Moz Bombora open pit Resource, namel Bombora Deeps, Kopai-Crescent and Carbineer,” Renshaw says.

“At Bombora Deeps, drilling has resulted in a 600m strike extension to 2kms below the existing Resource.”

New intercepts include:

  • 3.65m at 7.7g/t from 403m (including 2.65m at 10.6g/t from 404m) and 6.85m at 3.3g/t from 595m (including 5.15m at 4.1g/t from 595m);
  • 14.9m at 2.6g/t from 484m (including 6.85m at 4.8g/t from 491m);
  • 28.6m at 1.0g/t from 514m, 19.6m at 3.1g/t from 627m and 6.67m at 4.7g/t from 715m (including 5.67m at 5.6g/t from 716m).

“At the Carbineers prospect (400m east of Bombora), the initial three drill holes have returned gold mineralisation (4m at 21.8g/t, 4m at 2.53g/t and 16m at 0.12g/t), confirming a new source of potential Resource growth for the project,” Renshaw says.

“In addition, recent drilling at Kopai-Crescent (3km north) has also returned mineralisation, providing a sound platform for BRB to increase the existing Resource; see Focused on Resource growth for more detail.”

Renshaw has a target price for the stock of 55c compared with 24c currently.

“We expect works at Bombora to continue to focus on Resource extensions and presume drilling will remain relatively wide spaced until extents are determined,” he says.

“We expect drilling to transition to a denser pattern on delineation of extends and Resource growth targets.”

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