Updated Coverage of Warriedar Resources (ASX: WA8)


October 23, 2023
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Warriedar Resources (ASX: WA8) (formerly covered as Anova Metals), has over the last 12 months undergone a transformation, driven by the acquisition of highly prospective brownfields projects within the Murchison region of Western Australia. This has involved the acquisition of the Warriedar, Fields Find and Golden Dragon (now Golden Range) projects, a share consolidation and Board restructure.

Golden Range is located over the previously mined Golden Dragon orogenic gold deposits, which produced some 310.5 koz of gold from shallow oxide pits between 2001 and 2019, with mine infrastructure, including a 800 ktpa plant, 156 man camp, ancillary facilities and grid connection in the package. One key opportunity at Golden Range (and the nearby Fields Find, which includes Warriedar), and a major part of the Company’s strategy, is to assess the primary gold potential, with this being unmined in previous operations (which were limited by the mill), however with resources included in the current JORC 2012 compliant 945 koz Mineral Resource Estimate (MRE).

The results of historic work, and that completed by the Company to date, have demonstrated the potential, and pointed to significant expansions of the current resources (with most deposits being open at depth and along strike), for both open-pittable and underground primary orogenic gold mineralisation. There is also strong potential for new discoveries, with previous drilling barely scratching the surface (with an average hole depth in the order of 50 m), and with geophysical anomalies typical of sulphide gold systems not being historically tested.

Orogenic gold however is not the only target – parts of the projects are located close to the currently operating world-class Golden Grove polymetallic operation, a volcanogenic massive sulphide (VMS) deposit. Also nearby is the enigmatic Deflector Cu-Au operation, with the mill also treating ore from Rothsay. Work to date has demonstrated the potential for similar style discoveries on the Company’s tenements, identifying similar rock types, mineralisation and alteration.

The Company has an active exploration/evaluation programme underway in Western Australia, including further resource expansion drilling, and testing new targets. As such we expect positive results and steady newsflow, which should drive value in Warriedar, which is currently trading at a relatively low valuation compared to peers.

Although the subjects of this note are the recent Western Australian acquisitions, the +1Moz Big Springs project in Nevada, is still very much in the picture, and forms an integral part of the Company’s strategy.