ASX Share Price: BRB
Gold Price: AUD 2,632.30   per Ounce
(Updated every 60mins)

News Articles

Breaker on Bombora bounce

7 September 2018

The West Australian

Breaker Resources is back in the good books with investors after lifting the resource at its Bombora gold deposit above the psychologically significant one-million-ounce mark.

Shares in the Tom Sanders-led explorer surged almost 25 per cent yesterday after it announced a 74 per cent jump in its indicated and inferred resource to 24.6 million tonnes at 1.4 grams per tonne for 1.08Moz.

The inventory at the site 100km east of Kalgoorlie includes a high-grade core of 12.5Mt at 2g/t for 808,000oz.

Yesterday’s share price reaction is in stark contrast to investors’ response in April when Breaker announced a maiden resource of 11.9Mt at 1.6g/t for 624,000oz.

Punters who had been hoping for a figure closer to 1Moz savaged the stock at the time.

Mr Sanders said the company would continue drilling with three or four rigs on site to expand the resource while also pursuing a pre-feasibility study based on an open pit development with a standalone processing plant.

He noted 800,000oz of the known Bombora resource was within 150m from surface. But Breaker also plans to assess the underground mining potential of the deposit once it determines the lower limit of economic open pit mining.

“With Bombora, we started knowing nothing and now we’re starting to build a picture,” Mr Sanders said. “This is unmistakably reflected in the improving discovery cost of $18/oz compared to $23/oz for the maiden resource in April.”

Bell Potter senior resources analyst David Coates said the resource upgrade was consistent with his expectations.

“We think this is a horse definitely worth sticking with,” he said.

Breaker shares rose 5.5¢ to 28¢ yesterday, still well shy of the 80¢-high the stock reached just over a year ago when high-grade drill hits heightened investors’ hopes for a 1Moz maiden resource.

Mr Coates said he expected a re-rating of the stock on the back of yesterday’s upgrade but admitted the market was tougher now than it was last year.

“I think this is the kind of result that will make people reassess the company, its valuation and its long-term prospects,” he said.

“It’s the most compelling greenfields discovery in the market.”

Mr Coates described Bombora, part of the company’s broader Lake Roe project, as a strategic asset. He said the deposit’s location, grade, proximity to surface, size and growth potential would put it on the radar of bigger players.

Lake Roe is about 60km south of Saracen Mineral Holdings’ Carosue Dam mine and 50km north-east of Silver Lake Resources’ Mt Monger operations. Bell Potter has a “speculative buy” rating on the stock and a price target of 92¢.