Materials

Askari Metals sniffs out high-grade gold, base metals at NSW Springdale play

Thu 13 Oct 22, 11:17am (AEST)
Gold nuggets resting on dirt in shallow water
Source: iStock

Key Points

  • Askari Metals has hit rock chips containing gold grades over 30 grams per tonne of ore equivalent
  • On top of gold, fieldwork has also turned over evidence of base metals copper, zinc, lead, and also manganese and cobalt
  • Company to go back to the books and conduct further field mapping, surface sampling, and data review

Askari Metals’ (ASX:AS2) share price is up 8% in the first hour of trade as the company confirms discovering high-grade gold in rock chips and early-stage evidence of base metal mineralisation at its NSW Springdale polymetals play, an acreage containing no small number of promising historical artisanal targets. 

A fieldwork run has seen the team collect one rock chip sample over 30 grams per tonne of ore (30g/t) equivalent, in a promising sign high grade gold mineralisation may be present underground. 

While rock chip surface samples are often dramatically higher than what may be discovered in drill runs in the same area, the move confirms that gold is present in the area. 

Gold and what else?

So too has the company found promising early evidence that the following metals are present at its Springdale acreage: 

  • Cobalt (battery metal)

  • Manganese (battery metal) 

  • Copper (base metal) 

  • Zinc (base metal) 

  • Lead (base metal) 

On top of that, the company has also found trace evidence of rare earth metals on-site, giving the company no shortage of materials to begin searching for as the project develops. 

Worth noting is that the Springdale acreage Askari retains is the site of much former artisanal mining with more than 30 separate old workings through the area, giving the company an idea of where to start looking from the outset. 

Askari notes previous operations of this nature have returned high grade gold. Of likely interest to shareholders is that “Springdale has yet to be subjected to modern exploration.” 

Known copper-gold association: Management 

“The gold potential of Springdale has been known for some time…it is also known to have copper associated with its gold mineralisation and our results today reflect a very exciting start to the Company’s exploration activities,” Askari exploration chief Johan Lambrechts said. 

“The elevated zinc, lead, manganese, cobalt and rare earth values are further cause for excitement and the Company will design its future exploration activities with these additional metals in mind.” 

“We look forward to keeping our investors informed.” 

What’s next? 

Askari notes it will now go back to the drawing room to better compile data ahead of more intense future exploration. 

The geotech team will be going back to Springdale to collect surface samples (presumably more rock chips and soil samples) as well as further mapping the site for any outcrops discovered or other areas of interest. 

While drilling is not immediately on the cards just yet, given the promising evidence of a range of metals on site, shareholders would likely be wise to keep an eye on Askari’s movements at the NSW project. 

A look at Askari's three month charts
A look at Askari's three month charts
Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Askari was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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