Dateline Resources (ASX:DTR) is shifting exploration and development focus from its project at Gold Links in Colorado, to the Colosseum Project in California, as the company struggles to find a JV partner for the former despite impressive project credentials.
Last week, Dateline revealed it was seeking a JV partner to co-develop Gold Links after a string of contractors ultimately left the company’s cash position bruised.
A contractor conducting drillworks at the existing underground mine failed to complete the job on time and on schedule, which forced Dateline to terminate that agreement and fund its own acquisition of equipment.
Similarly, the gold mill attached to Gold Links (the mill itself is named Lucky Strike) was also the subject of a contract breach when one entity tasked with repairing it similarly failed to appropriately comply with agreed timelines.
All in all, Dateline found itself over budget for the project, and company directors have since switched to procurement of a JV partner.
Gold Links has produced bags of gold concentrate for sale this year, boasts an existing underground mine, and the Lucky Strike mill has proven itself as competent to handle the ore from the Colorado asset.
Despite this, the company has been unable to progress conversations with several parties to a full agreement.
Macro headwinds, still defining equity markets (in both Australia and the US) in late 2022, more than likely have something to do with this.
Dateline will shift its focus to its Californian Colosseum project with a gold resource of 813Koz and also prospective for Rare Earth Elements (REEs). For the time being, Gold Links will be shunted onto a skeleton crew so as to ensure the ongoing integrity of Dateline’s cash position.
Back in June, the company intersected a 100m long zone grading at 4.16 grams of gold per tonne of ore (4.16g/t).
Investor information provider Undervalued Equity notes gold in concentrations over 5g/t is considered high-grade; many projects in Australia boasting grades of 4g/t are also labelled the same.
In short: Dateline is sitting on a promising asset at Colosseum, too.
“There are several parties in the US that are interested in a JV at Gold Links, however this process will take time to work through,” Dateline chief Stephen Baghdadi said.
“Colosseum has drill ready REE targets and an existing robust 813,000oz mineral resource with obvious extensional potential, we see this project as being capable of delivering value for our shareholders.”
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