Peter Bewick is having a good year. He is the managing director of gold exploration company Hamelin Gold (ASX:HMG).
Bewick told the audience at the RIU Resources Investor Roadshow in Melbourne yesterday that Hamelin is posting some “pretty sensational” drilling results at its early stage Day Dawn Gold Project.
Located in Western Australia’s gold-rich Paterson Province, Day Dawn is only 10km from the Telfer gold mine, which is owned by Greatland Resources (ASX:GGP), one of Australia’s largest gold miners.
Bewick and his team used historic drilling data to identify the Aurora lode at Day Dawn, which is now raising the tempting prospect that Telfer-style mineralisation extends into Hamelin’s territory. Two other prospects are Sparrows and Phoenix, with all three located within Day Dawn’s 20km² property.
In July, Hamelin reported ‘high-grade’ results from its maiden reverse circulation (RC) drill program. It confirmed further mineralisation at Aurora earlier this month that suggests geological similarities to the Telfer deposit.
Bewick described the discovery using a golfing analogy, saying it was like “two birdies in a row” for the company, but there were still “16 holes to go”.
Day Dawn requires further drilling, so Hamelin went to the market for fresh capital, raising $8 million in a placement at $0.16 per share last week.
Major producers Vault Minerals (ASX:VAU) and Gold Fields (JSE:GFI) were already on the register and are Hamelin’s two largest shareholders. Major gold companies are currently enjoying strong cash flows and are in a position to support junior exploration.
Phase two of the RC drilling at Day Dawn has commenced, with the market awaiting further results. The timing is favourable, with gold companies providing regular news flow around deals.
In September, Hamelin will diamond drill even deeper to test for the same Telfer-style system that is currently generating millions of dollars for Greatland each quarter.
Bewick says the early results are “incredibly encouraging” and that the upcoming drilling “doesn’t get any more exciting than this” for an active junior company.
There has been plenty of speculation around Greatland making a move for fellow Paterson Province explorer Antipa Minerals (ASX:AZY) in recent times. Antipa’s 2.9-million-ounce Minyari Dome Project is only 35km from Telfer.
Hamelin’s Day Dawn Project is even closer to Telfer. Similar speculation could emerge around Hamelin Gold if it continues to post strong drilling results.
Mr Bewick shrugged at the idea. Regardless, he says, “I want to build this mine”.
Write to Callum Newman at Mining.com.au
Images: Unsplash & Callum Newman
