ASX Share Price: BRB 32.5¢
Gold Price: AUD 1,724.50   per Ounce
(Updated every 60mins)

News Articles

Bombora a major discovery: Breaker

30 May 2018

MiningNews.net

BREAKER Resources executive chairman Tom Sanders says the Lake Roe project outside Kalgoorlie is Australia’s only pre-development greenfields gold discovery.

Last month, the company released a maiden resource for the Bombora deposit of 11.8 million tonnes at 1.6 grams per tonne gold for 624,000 ounces of gold.

Since then, Breaker shares have fallen from A51c to as low as 24c.

Sanders told the Resources Rising Stars conference on the Gold Coast that the expectations of some weren’t met.

“The market is an irrational beast,” he said.

“But it’s not a straight run. It’s an interim resource, a partial resource – it’s early days.”

“We have four rigs currently and that resource is growing quickly,” he said.

“We are well-endowed with gold.”

Breaker is aiming to reached 700,000-800,000oz in the interim.

“It’s enough, we believe, for a standalone mine,” Sanders said.

“There’s not many companies in that position.”

Sanders defended questions around the continuity of the mineralisation.

“It hangs together very well,” he said.

With the resource grade also disappointing some, Sanders is confident of achieving an average grade of 2gpt gold.

“The resource is limited by the extent of the drilling,” he said.

“We keep drilling this thing and it keeps getting better.

“We’ll be drilling this, I believe, for 10 years.”

The company’s exploration target is 1.2 million ounces down to 400m depth.

“That exploration target is conservative by nature – I’m conservative by nature,” Sanders said.

Sanders said the potential of the Lake Roe project hadn’t changed, despite the market reaction.

“I’m coming out and calling this a major gold discovery,” he said.

“I expect to make this call only once in my career because it is rare.”

While Sanders said the market was not ascribing any value to further exploration upside, Lake Roe was likely to be a company maker for Breaker.

“This is a judgement call but it’s from 40 years of experience,” he said.

Breaker shares last traded at 28c, but Sanders pointed to Bell Potter’s price target of 96c.

“In our view the hammering of the Breaker share price represents a mismatch in the market where risk has been reduced and reward has gone up,” Bell Potter analyst David Coates said earlier this month.

“The maiden resource was a major de-risking event and while it clearly did not meet the expectations of some corners of the market, it set a foundation consistent with the discovery of a significant, economically attractive greenfields deposit with plenty of scope for further growth.”