How Stavely became one of the most successful exploration floats in recent years
28th February 2020
Resources Rising Stars
The exploration spotlight swings back on to Stavely Minerals (ASX:SVY) in coming days with the expected release of latest drill results from its Thursday’s Gossan copper-gold discovery in the Stavely volcanic belt in western Victoria (reports Barry FitzGerald on Stockhead).
Shares in Stavely rocketed in September last year when the first hole in a new shallow-focused drilling program at Thursday’s Gossan — immediately southeast of earlier deep drilling — assayed up to 40 per cent copper.
The spectacular hit was made in a diamond drill hole that specifically targeted shallow and structurally controlled mineralisation within the Ultramafic Contact Fault (UCF).
The drill hole returned a 32m intersection which assayed 5.88 per cent copper, 1 gram per tonne (g/t) gold and 58g/t silver from 62m down-hole, including 12m at 14.3 per cent copper, 2.26g/t gold and 145g/t silver, and 2m at 40 per cent copper, 3g/t gold and 517g/t silver.
Stavely shares took off in response, rocketing from 24c to as high as $1.42 in October. The shares have since drifted back to 71c, valuing the May 2014 initial public offering at $151m, making it one of the most successful exploration IPOs in recent years.
Stavely now has four drill rigs spinning at the project, about 250km to the west of Melbourne and near the town of Glenthompson, and the market in the stock is hungry for fresh drilling results from the discovery.
There was a clue in Stavely’s December quarterly report, released on January 30, that more drilling results would be released by about now, with the company saying core from five drill holes was in the lab being assayed.
Stavely has now hit mineralisation on three structures — the UCF, the North-South structure, and another called the Copper-Lode splay. Drilling is now in the early stages of a drill-out targeting shallow mineralisation on the UCF as part of a five-pronged strategy.
Stavely executive chairman Chris Cairns outlined the strategy at the RIU Explorers Conference in Fremantle last Tuesday.
The goal is to complete the shallow resources drill out, define the mineralisation on the UCF below the Low Angle Structure, extend the mineralisation on the Copper Lode from 500-600m towards the surface, extend the mineralisation of the North-South structure from 800-900m towards the surface, and target regional exploration opportunities.
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