HAR - due diligence update on US gold project
Our Investment Haranga Resources (ASX: HAR) just put out an update on due diligence that is ongoing for the acquisition of its US gold project.
HAR is days away from acquiring 100% of a USA gold project with 5.8km of ground in the heart of the famous California gold rush region, a region literally named the “Mother Lode”.
The Mother Lode is known for its high grades and for being at the centre of the famous California Gold Rush.
HAR’s project already has a 286,000 oz non-JORC gold resource at 9.28g/t.
(with 2008 data showing it might be up to ~682,000 ounces, more on this below)
...and new drilling planned in the coming weeks.
HAR’s acquisition also comes with a 100% owned built and permitted 350kta gold processing plant, an 880m decline (the tunnel that goes underground to get to the gold), plus offices and a workshop.
In total, the project has had over $90M of sunk capital poured into it.
We just got back from a site visit for the project which you can check out here: HAR: Richest section of the California gold rush Mother Lode and fully permitted processing plant…. and we saw it.
Today, HAR put out sampling results that were selected as part of the company’s due diligence on the project.
The results returned high grade gold intervals which married up with original results - exactly what HAR would have been hoping to see as part of due diligence.
Some of the results caught our attention - especially the 108.7g/t gold grade over 3.7m and the 1m intervals where gold grades are as high as 304.5g/t gold.
(Source)
These are all serious gold grades, even when the thin nature of the intercepts are considered - for context, anything over 30g/t is commonly referred to as “bonanza grade”...
Another thing we noticed in today’s announcement was the commentary on “grade distribution”.
HAR showed that 66% of the 204 samples taken from old drill cores & pulps came in at above 1.5g/t gold.
(Source)
In high grade systems like the project HAR is acquiring the key is to see consistency in mineralisation - ie high grade veins that can be mined without major gaps in between.
Meeting key grade thresholds reduces the risks of inconsistent grade when it comes time to mining.
What’s next for HAR?
Next we want to see HAR close out the acquisition of the US gold assets
After the deal closes, we will be looking forward to the diamond drilling HAR has planned for next month.
We noticed in today’s announcement that HAR expects the deal to be completed “this week”:
(Source)
