St Barbara (ASX:SBM) has launched a reverse circulation (RC) drilling program at the Pinjin South earn-in and joint venture (JV) located in Western Australia.
Drilling comprises 19 RC holes for 3,000m and the program is expected to take 2 weeks to complete.
The $143.14 million market capitalisation company’s primary objective of the program is to test the 6 ‘most promising’ gold, nickel, and lithium targets defined to date.
Preliminary assay results from this program are expected in Q2 FY24.
Commenting on the drill program, St Barbara Managing Director and Chief Executive Officer (CEO) Andrew Strelein says: “The initial technical work completed by Plowden has further developed the regional geological and structural understanding of the project.
This work in combination with boots-on-ground technical mapping, auger drilling, induced polarisation surveys, and gold and multi-element analysis, has led to the identification of over 21 gold, nickel, and lithium targets.
“This work … has led to the identification of over 21 gold, nickel, and lithium targets”
We look forward to seeing the results of the early stage drilling of 6 of the highest priority drill targets.”
Pinjin South is a JV between St Barbara and Plowden Resources, with Plowden on track to achieving a 15% participating interest by funding $1.6 million by 24 December this year.
St Barbara is an Australian-based producer, with gold mining operations in Canada and Papua New Guinea. The Pinjin JV project is located in the Eastern Yilgarn area of Western Australia.
As of 30 June 2023, the company had $294 million cash at hand, including $47 million cash deposited in a restricted account for the Touquoy security and reclamation bond, according to its latest quarterly report. The additional $43 million required for the full $80 million reclamation security estimate is being reviewed by the Department of Natural Resources and Renewables.
According to the latest quarterly report, the tax liability of about $33 million on the sale of the Leonora assets were not yet paid as of 30 June 2023.
St Barbara’s share price has been on a rollercoaster this year. In July it was trading at $0.295 and yesterday (3 October) it was trading at $0.180.
Write to Aaliyah Rogan at Mining.com.au
Images: St Barbara
