Next Investors logo grey

Full steam ahead for Vango in 2020

Published 06-FEB-2020 08:19 A.M.

|

3 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

Vango Mining (ASX: VAN) used is quarterly report (for the period ending 31 December to 2019), released 31 January to remind the market how close it is to becoming a significant, stand-alone gold producer through its recently announced bonanza gold intersections at the company’s key asset, its 100% Marymia Gold Project.

Major announcements during the December quarter include the drilling result grading up to 182g/t gold intersection from a new high-grade zone at the Albatross-Flamingo prospect, located 300 kilometres northeast of Meekatharra in the mid-west region of Western Australia.

Positive market sentiment around the open-pit potential of Albatross-Flamingo, and the potential to deliver substantial cost savings – relative to an underground operation – saw the share price up around seven per cent following its bonanza gold intersection announcement early January. It has since pulled back closer $0.14.

Major upgrades to existing high-grade resource

Beyond the high-grade zone at Albatross-Flamingo, Vango is focused on drilling within its other operations, including the Trident-Marwest-Mareast corridor, where it aims to deliver a significant upgrade to the existing high-grade resource.

During the quarter, exceptionally high-grade results were also received from drilling at the northeastern end of the Mareast deposit, with some of the results including 10 metres at 22.6 g/t, including six metres at 33.3 g/t, and four metres at 42.4g/t.

Based on some high grade gold intersections also reported on during the quarter, including four metres at 11.0g/t, two metres at 20.7g/t, and one metre at 34.5g/t, the gold explorer and developer plans to test for extensions to this new and very high-grade shoot discovery.

Within the December quarter the company also announced that it had received co-funding approval, through the Exploration Incentive Scheme (EIS) of the West Australian Government, to carry out deeper drilling at the shallow southwest plunging corridor of Mine-Mafic hosted mineralisation that may continue from Mareast to below Trident.

Equally encouraging are new high-grade shallow intersections at Mars, which include:

  • 15m @ 4.15g/t from 34m, including 9m @ 6.62g/t, and 1 metre @17.9g/t
  • 8m @4.40g/t from 68m, including 6m @5.60, and 2m @13.8g/t
  • 16m @ 2.06g/t from 21m, including 6m @3.62g/t

Excellent metallurgy for Triple-P high-grade resource targets

In addition to multiple high-grade and relatively shallow intersections from drilling 11 wide-spaced, reverse circulation drill holes for 1,852 metres at Albatross Flamingo, the company also received excellent metallurgical results from its Triple-P and Zone B high-grade gold deposits.

Very high gold recovery was achieved of 97.4 percent, and 97.3 percent for the Triple-P – Zone B high-grade (8/t Au) composite; and moderate grade (3g/t Au), low sulphide composite respectively. These positive results have enhanced the Triple-P and Zone B high-grade gold targets, with the latter showing high gravity gold recovery, and very high overall leach recovery – which may bode well for low cost recovery.

During the quarter, drilling commenced testing targets on the Ned’s Creek joint venture tenements, and assay results from the initial programme are expected early in February.

New managing director appointed

Encouraging news around the high-grade zone at Albatross-Flamingo coincided with revelations that Mr Sean Zhou was stepping down as managing director with resource sector senior executive, Andrew Stock taking up the top job (effective 20 January 2020). It’s understood that Mr Zhou will continue to play an active role in the company as Deputy Chairman and non-executive director.

Following on the heels of the new managing director announcement early November, were revelations of a strategic partnership with China Nonferrous Metal Industry and Construction Company Ltd (NCF). It’s understood NCF will commit an estimated $70 million to the ongoing development of Marymia.



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.