Breaker looks at alternate strategy
15 January 2018
HAVING made a greenfields gold discovery promoted as potentially underpinning a large-scale mining operation, Breaker Resources is now planning “to initiate studies on a low-cost gravity-based production start-up option which would generate cashflow while resource drilling continues” at Lake Roe.
The somewhat atypical strategy comes after metallurgical results showed gravity gold recoveries of 31-77% in oxide ore and 32-90% in fresh ore, “with no obvious correlation with gold grade”.
Breaker has an eagerly awaited maiden resource estimate due later this quarter at Lake Roe, outside Kalgoorlie, with the company keen to point out “resource drilling will continue long after release of the maiden JORC resource”.
The potential early start production strategy could also be an effort to address the typically flat market period faced by companies as they undertake feasibility work.
Breaker has an estimated A$12 million cash.
Shares in Breaker were up 3% to 71c in early trade, capitalising the company at $103 million.
Breaker last raised cash in August when it attracted $10 million by issuing new shares priced at 70c each.