Why invest in Spitfire Materials?
A diversified portfolio of high-quality Australian gold assets – underpinned by a combined Mineral Resource inventory of over 2.1Moz in the North Kalgoorlie region.
Spitfire Materials has embarked on a strategy to build a substantial long-term gold business in Western Australia’s Eastern Goldfields through a combination of acquisition, exploration and strategic consolidation.
A strong Resource base
Following a merger with ASX-listed Aphrodite Gold (ASX: AQQ) which was completed in early 2018, Spitfire acquired the 1.3Moz Aphrodite Gold Project, located 65km north of Kalgoorlie. Aphrodite is one of the more significant undeveloped gold assets in this infrastructure-rich mining district. Aggressive resource in-fill and extensional drilling programs were completed at Aphrodite during 2018 to upgrade the resource as the basis for development studies. Read about the merger here.
Following the Aphrodite transaction, Spitfire announced a proposed merger via Scheme of Arrangement with fellow ASX-listed gold developer Excelsior Gold (ASX: EXG), which was completed and implemented in early October 2018. This resulted in the consolidation of Excelsior’s neighbouring North Kalgoorlie gold project to establish a combined 2.1Moz Resource inventory that now underpins the combined Bardoc Gold Project. Development studies are underway on the combined project.
A high-quality asset portfolio
In addition to the Bardoc Gold Project, Spitfire also owns a portfolio of earlier-stage gold assets. These include the Mulwarrie Gold Project in Western Australia, strategically located just 65km from the Bardoc Project, the Alice River Gold Project in North Queensland, the England Gold Project in the prolific Laverton gold district of WA and the Yoda gold prospect in the Northern Territory.
This extensive and high-quality gold portfolio offers outstanding potential for shareholder growth, with intensive exploration and resource development programs planned across the Company’s key projects in 2018.
Aphrodite Gold Project, WA
Located in the heart of Western Australia’s world-famous Eastern Goldfields region, the Aphrodite Gold Project is ideally positioned for development. Just 65km north of the regional mining centre of Kalgoorlie, it is close to all of the major infrastructure and workforce required for its proposed commercialisation. It also lies just 65km from Spitfire’s Mulwarrie Gold Project.
The Aphrodite Project hosts a 1.3Moz JORC 2012 Mineral Resource inventory (completed as part of Aphrodite Gold’s Pre-Feasibility Study in 2017). This Mineral Resource will form the basis of Spitfire’s 2018 exploration program and potential future Definitive Feasibility Studies.
Mulwarrie Gold Project, WA
The Mulwarrie Gold Project is located 150km north-west of Kalgoorlie in the Ularring District of the North Coolgardie Mineral Field. The project encompasses two contiguous tenements within a 10km wide greenstone belt, which forms the north-west extension of the Coolgardie Line. The structurally dominant, north-trending Mt. Ida fault lies approximately 4km east of the Mulwarrie Mining Centre.
Recent drilling at Mulwarrie has extended in the southern zone to depths well below 100m, with impressive assay results of up to 53.6g/t Au.
Given its location just 65km from Spitfire’s flagship Aphrodite Gold Project, the Mulwarrie Project is a strategic asset which has the potential to become a satellite mining operation to a broader gold business centred at Aphrodite.
Alice River Gold Project, North Queensland
The Alice River Project, located 470km north-west of Cairns in NE Queensland, covers a total area of 808km2 and has a long historic of prospecting and exploration work spanning more than a century. The gold mineralisation occurs at several prospects along the Alice River Shear Zone, a 50-60km long north-west trending set of shear zones located with the Alice-Palmer Structural Zone, with Spitfire holding an interest in the entire prospective belt.
Preliminary modelling has resulted in the reporting of an initial advanced Exploration Target¹ under the JORC 2012 code, consisting of 1.47Mt to 2.21Mt at an average grade of 2.4 to 3.6 g/t Au, for a total of 105,000oz to 250,000oz Au.¹ Extrapolation and modelling of mineralised structures/veins was completed to a depth of 120m, with the targeted zones remaining open at depth and along strike.
Spitfire completed an initial drilling program in late 2017, which was focused within this Exploration Target at the Alice Queen and One Mile prospect areas. This drilling successfully confirmed the presence of significant high-grade primary gold mineralisation both below and along strike from historical gold mining areas.
Exploration Target¹: The potential quantities and grades are conceptual in nature and there has been insufficient exploration to date to define a Mineral Resource. It is not certain that further exploration will result in the determination of a Mineral Resource under the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, the JORC Code” (JORC 2012). The Exploration Target is not being reported as part of any Mineral Resource or Ore Reserve.
An experienced Board & Management team with a track-record of exploration and corporate success
Spitfire has an experienced and highly-credentialed Board and senior management team, with a strong track-record in exploration, development and mining. The Company is led by highly experienced Australian mining executives Mr Neil Biddle and Mr John Young as Directors of the Company, with Mr John Young appointed Managing Director.
Mr Biddle and Mr Young both played an instrumental role in the growth of Australian lithium developer, Pilbara Minerals Limited (ASX: PLS), now a $1.6 billion company, and were closely involved in the discovery and development of Pilbara Minerals’ world-class Pilgangoora Lithium-Tantalum Project in Western Australia.
Strong growth outlook for gold
The Australian gold sector is experiencing a high level of investor interest and support, underpinned by the strength of the Australian Dollar gold price and the strong outlook for the sector both domestically and internationally.
Gold is one of the world’s most versatile metals, with approximately 45% of gold today used to produce jewellery, 45% used in the form of investments and finance, and the remaining 10% used for technological and industrial applications (of which around 75% is used for the manufacture of electronics).