Upbeat drilling results from Breaker
Published 11-FEB-2019 10:18 A.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Recent drilling by Breaker Resources NL (ASX:BRB) has continued to expand the known length, width and depth of the Bombora gold deposit at its Lake Roe Gold Project, 100 kilometres east of Kalgoorlie.
It was only last week that Bell Potter flagged the Lake Roe project as its standout greenfields gold discovery.
With the Australian dollar gold price hovering in the vicinity of $1850 per ounce, companies such as Breaker could find increasing support.
The latest results extend the known strike length of Bombora by 200 metres to 2.5 kilometres and Bombora remains open in all directions.
Imminent share price catalysts
Breaker plans to update the existing 1.1 million ounce resource early in the June 2019 quarter – a potential share price catalyst.
The company is running a dual strategy at Lake Roe, namely ongoing aggressive drilling with four drill rigs targeting rapid resource growth and upgrade, as well as prefeasibility activities targeting an early, large open pit development.
The timing of the prefeasibility study (PFS) will be dictated by the need to establish the overall limits of open pit mining: drilling continues to discover new areas of shallow gold mineralisation thereby increasing the size of a potential open pit.
Consequently, the main priorities of the drilling are the identification of the outer limits of open pit mining, to allow finalisation of the PFS and resource expansion, particularly where open pit mining potential is apparent.
Concurrently, reconnaissance drilling is also underway to assess the long-term, high-grade potential at depth with early results being favourable.
Bell Potter likes the story
Bell Potter analyst, David Coates has a ‘speculative buy’ recommendation on Breaker Resources with a valuation of 87 cents per share, well above the company’s current trading range of approximately 35 cents. Although, as stated, this is speculative and may not come to fruition.
Coates noted that the September update added 500,000 ounces in five months and lowered the discovery cost from $23 per ounce to $18 per ounce.
Coates said, “Since then, BRB has had four drill rigs operating continuously and released three rounds of drilling results from infill and extension drilling.
“In our view, Lake Roe remains the standout greenfields gold discovery in the Australian market, showing the key hallmarks of a major deposit.
“BRB is in a cost-effective discovery phase driven by increasing geological understanding and a well-resourced drilling program.
The deposit remains open in all directions with significant potential for growth.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
