Breaker Resources (ASX: BRB) has reported new gold intercepts from diamond drilling at the Tura Lode system within its Lake Roe Project in Western Australia, with step-out work expanding the boundaries of known mineralisation.

The steeply-dipping lode system, which sits beneath the project’s 3.7km Bombora deposit, was tested by a three diamond holes that returned intercepts including:

• Hole BBDD0130: 1.6m @ 37.46g/t Au from 401.0m, with an estimated true width of 0.90m
• Hole BBDD0127: 0.7m @ 16.07g/t Au from 398.5m, 1.54m @ 14.65g/t Au from 408.46m within an estimated 6m true width intercept of 11.5m @ 3.52g/t Au, and 2m @ 5.64g/t Au from 575m (deeper intercept may indicate discovery of new flat lode)

Breaker reports that the results confirm a ‘substantial’ emerging zone of ‘high-grade’ gold mineralisation, lending further weight to underground mining potential below the project’s current open-pit resource.

“WE ARE HUGELY BUOYED BY THESE RESULTS AND WE HAVE IDENTIFIED UP TO SEVEN OTHER (SOUTH- PLUNGING) STEEP LODES”

Speaking on these latest results, Breaker Resources Managing Director Tom Sanders said: “We keep stepping out on 80m sections and keep on hitting the lode as predicted with excellent high-grade intercepts. The Tura lode now extends over 900m down-plunge and remains open to the south with more step-out holes planned. We are hugely buoyed by these results and we have identified up to seven other (south- plunging) steep lodes with scope to keep extending the underground potential. Add to this the high-grade north-plunging stacked flat lodes which have now been traced for over 2.2km along strike to a 500m vertical depth below the northern part of the Bombora deposit, and we feel we are now showing the makings of a substantial underground mining proposition to add to our already defined large open pit resource.”

Resource expansion drilling at the 1.4Moz Lake Roe Project is ongoing, with two RC rigs working on a 24/7 basis, supported by a third rig which is being utilised on a campaign basis.

Data from current drilling will be used to formulate a resource upgrade, which is scheduled for release in late 2021.

Article by: Jonathan Norris – 29 October 2021

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With the market’s appetite for gold showing little sign of slowing down, Breaker Resources has launched a major drilling campaign at its Lake Roe project 100km east of Kalgoorlie-Boulder.

The junior explorer yesterday announced it was upping the ante in a bid to grow its one million ounce resource at the Bombora deposit.

That comes after Breaker last month struck a non-brokered $8 million share placement with an equity fund managed by US-based Electrum Group.

Just three weeks later Breaker is sinking more holes in the ground with diamond drilling at Bombora South starting this week.

That will be followed with reverse circulation and diamond drilling at the Claypan prospect before a third rig rolls into the project area in January.

Breaker boss Tom Sanders said the drilling campaign was designed to unlock the exploration potential at Lake Roe.

Mr Sanders said his team had done a great job unravelling the geology and he believed there was huge scope to grow the resource.

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Breaker Resources has agreed to a $8 million share placement to Electrum Group’s strategic opportunities fund to ramp up drilling at the Lake Roe gold project in Western Australia.

Electrum Group, a United States-based precious metals investment manager, will become Breaker’s largest shareholder following the placement.

The placement consists of over 23 million newly issued shares valued at 35 cents per share.  Proceeds will fund reverse circulation (RC) and diamond drilling at Lake Roe’s Bombora resource in the Goldfields region.

Electrum is expected to own approximately 9.95 per cent of the issued Breaker shares once the placement closes. It will also have the right, subject to regulatory approval, to nominate a person with strong links to US capital markets to Breaker’s board.

“Breaker welcomes the support of a prominent North American institutional fund and their support is seen as an expression of confidence in the growth potential of the company’s Lake Roe gold project,” Breaker
reported in an ASX statement.

“The placement follows a strategic review undertaken by Breaker aimed at unlocking the full value of the company’s Lake Roe gold project.

“As a result, the board has formed the view that the best way to deliver value to shareholders is to expand the resource base through further drilling.”

Breaker has now put the Lake Roe pre-feasibility study on hold after its decision to partner with Electrum, as the companies share the objective of advancing the project along the value chain through expansion of its existing resources. RC and diamond drilling are scheduled to start at Lake Roe in the coming week.

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BREAKER Resources executive chairman Tom Sanders says the Lake Roe project outside Kalgoorlie is Western Australia’s most significant gold discovery since the 6.6 million ounce Gruyere deposit.

Lake Roe’s Bombora deposit has resources of about 1Moz, but is open in all directions after 223,000m of drilling.  The company revealed yesterday it had identified a large 2.5km by 500m anomaly, 1.3km to the southeast of Bombora.   Reconnaissance aircore drilling returned 4m at 1.36 grams per tonne gold from 40m; 4m at 0.95gpt gold from 48m; 12m at 1.32gpt gold from 48m, including 4m at 2.75gpt; and 3m at 2.66gpt gold from 72m to end of hole.

Sanders told the Gold and Alternative Investments Conference in Sydney yesterday that reverse circulation drilling would begin next month.  “In other words, high-impact potential discovery drilling,” he said.

Breaker said the scale and tenor of the gold anomalism is comparable with the Bombora and Crescent discoveries, and extends the strike length of Lake Roe to at least 8.5km. Sanders compared the size to Kalgoorlie’s Golden Mile.  “I’m not comparing the endowment by any means,” he said.

Sanders said Breaker had made a new discovery every quarter for the past three years, and Lake Roe still had “camp-scale growth potential”.  Breaker recently delayed the release of its prefeasibility study, initially
due this month, in order to consider strategic alternatives. While Sanders didn’t mention the Azure Capital-run process, he said mining studies were continuing.

“We won’t go mining until we’re very comfortable and the risk has been mitigated,” he said.  “When we press the button, we’re going to be absolutely self-assured and confident this isn’t going to fall off the rails like some other things.”

Breaker shares have been unchanged at A35c for the past week.

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Breaker Resources has again said it’s been contacted by corporates potentially interested in doing a deal and as a result it’s now deferring a prefeasibility study due to be completed this month as it undertakes a strategic review assisted by Azure Capital.

The deferral continues a run of missed deadlines for the junior at its Lake Roe gold exploration play east of Kalgoorlie.  While the PFS due this month is being deferred, the company said the review “also
aims to lay a platform for a significant step-up in drilling activities to increase the current 1 million ounce resource which is open in all directions”. 

The review comes with the stock trading this week at 52-week lows and against the backdrop of a superb gold price.  Breaker is estimated to currently have a little over $2 million cash, with a call of 19c
per share being made las month on 4.6 million partly-paid shares.  Breaker’s last placement was in May when $6.3 million was raised by issuing new shares priced at 30c each.

Shares in Breaker were up 12.3%% to 32c in afternoon trade, capitalising the company at nearly $67 million.  Just over two years ago the stock was trading above 70c.

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A new gold resource estimate at Breaker Resources’ Bombora deposit east of Kalgoorlie has done little to enthuse the market ahead of results from prefeasibility study now due late in October.

Shares in Breaker were sold down as it reported an indicated resource of 18.4 million tonnes grading 1.4 grams per tonne for 800,000 ounces, with a “high-grade core” of 9.4Mt at 2.2gpt containing 670,000oz also
estimated.

Capital markets firm Argonaut believes there is still “quite some way to go with drilling given the complexity of mineralisation”.  The firm also suggested that while higher grade resources would be truckable to the nearby Carosue Dam processing plant owned by Saracen Mineral Holdings, “we think Breaker needs substantially higher contained ounces to achieve a standalone project at this stage”.

Breaker began reporting resources for the project last year, with prefeasibility work starting 12 months ago.  It last raised funds in May when A$6.3 million was tapped by issuing new shares at 30c each.

Shares in Breaker were down 10% to 34c in midday trade, capitalising the company at $69 million.  The stock is little changed over the past 12 months but has halved in market value since mid-2017.

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If Tom Sanders’ assessment of his company’s Bombora project is as good as he paints, then surely in this market there’d be some expectation this ASX-listed stock hasn’t got long on this earth as an independent gold junior.

Speaking at Diggers & Dealers, the executive chairman effectively outlined a long list of reasons why, when combined, the junior should be in the crosshairs of a booming Australian gold mining sector.  In the  general order of his presentation the positives included: tier one location (100km east of Kalgoorlie); a potential single large open pit up to 2.5km long and about 250m deep; three stacked lode orientations (hence geologically similar to Golden Mile); 5000-6000oz per vertical metre (“great for open pits”); minimal drilling expected for (completing) full feasibility; continuity of mineralisation now proven … and so it went on.

According to Sanders, Breaker has made “at least one lode discovery each quarter for the last three years”, while the metallurgical results to date are said to point to low-cost processing.  There’s even a granted mining lease! 

Bombora lies between Saracen’s Carosue Dam operation and Silver Lake’s Karonie mine. Both of those companies are successful miners who’ve dabbled in M&A.

The first financials for Bombora are due to be revealed in late October when the results of a pre-feasibility study are revealed.  As per any director worth his salt, Sanders’ presentation claimed Breaker is cheaply valued by the market, pointing to unspecified “independent broker research” to back the assertion.  Breaker’s shares have recently been trading around the 40c share mark, though two years ago they spent a six month period in the 60-70c range.  Sanders’ presentation made a comparison between Breaker’s valuation per resource ounce (A$74/oz) versus that of peer Bellevue Resources ($169/oz), though the appropriateness of that comparison is debatable given Bellevue is a future underground play featuring a much higher grade resource.

Perhaps a more appropriate comparison would be with Calidus Resources, which also has resources of just over 1Moz, and which last month completed a PFS for a large open cut (plus underground) mining
operation near Marble Bar processing ore at about 2 million tonnes per annum – versus Breaker’s potential 2.5Mtpa. Calidus’ enterprise value per resource oz: $40/oz. Calidus presented earlier at Diggers & Dealers, and, as per Sanders, MD Dave Reeves believes his company is also undervalued.  New South Wales gold producer Alkane Resources has agreed with that assessment given it invested in Calidus at a then-premium to market earlier this year.

Will anyone be coming knocking at Sanders’ door?

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Breaker Resources boss Tom Sanders has compared the company’s greenfields Bombora discovery to Kalgoorlie’s famous Golden Mile.

Speaking at the Resources Rising Stars conference on the Gold Coast, Mr Sanders said the company had barely scratched the surface at Bombora despite drilling 247,000m since listing in 2012 and defining a resource of 1.1 million ounces.  “I’m not saying what we have is the Golden Mile, but it is the closet analogy geologically,” he said.

The Golden Mile is the site of the world-famous Super Pit near Kalgoorlie, owned jointly by gold giants Newmont-Goldcorp and Barrick. Mr Sanders said the 2.5km-long Bombora deposit, which lies about 100km east of Kalgoorlie, remained open in every direction, with the company only defining resources to a depth of 250m. “Where we’ve stepped out to go deeper, we’ve hit high-grade gold,” he said.

“We’ve been drilling steadily for the past three years and had about one discovery each quarter over those three years.

“Discovery stories like this are rare, not only in Australia but worldwide.”

The company is eyeing a high-grade, open pit operation with a 2.5mtpa processing plant.  “We could mine this at 1.5g/t or 2g/t, or better. We can decide what the all-in sustaining cost is, so it’s a derisking element that is huge,” he said.  Breaker is planning to announce a resource upgrade next month, with a long-awaited pre-feasibility study targeted for September or October.

“Either we’ll get taken over and we’ll make a lot of money or we’ll go mining it and we’ll make a lot of money,” he said.

Mr Sanders said he expected Breaker would be drilling out Bombora for the next 10 years.

Last month, the company raised $6.3 million to continue its exploration program at Bombora and continue the pre-feasibility study.  Breaker shares were up 1.5¢, or 5 per cent, to 33.5¢ at 11.25am

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While the market keenly awaits an open cut resource update, Breaker Resources has reported further drill success at depth at the Lake Roe project 100km east of Kalgoorlie. 

The company said it had made another lode discovery with “abundant” coarse gold seen in 0.59m of core from 420m below surface. Breaker has undertaken around 200,000m of resource drilling Lake
Roe’s Bombora deposit, with recent drilling looking at the longer term underground potential.

The market remains very keen to see the open cut resource and prefeasibility results. The company said in March it expected to deliver a resource estimate for April/May, but late last month re-scheduled for July.
Prefeasibility results are then expected to be revealed 2-3 months after that, with a 2.5 million tonne per annum development being assessed.

Breaker had about A$3.3 million cash at the start of the current quarter and was budgeted to spend $2.7 million in the current quarter.  Shares in Breaker were up 1.5% to 33.5c in morning trade, capitalising
the company at $61 million. The stock was at 44c in March.  Its last fundraising was back in October when it attracted $10.5 million in return for shares priced at 29c each.

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Having felt it was stung by a disappointed market after releasing a maiden resource for the Bombora deposit while drilling was still hitting gold mineralisation, explorer Breaker Resources says it will not complete a prefeasibility study on the potential development until it finalises the boundaries of a pit.

Breaker’s statement came as the company reported “new high grade drill results (that) continue to grow Bombora along strike, to the east, and at depth”.   MNN was unable to reach Breaker MD Tom Sanders to get further clarification, with the executive in transit to the site, east of Kalgoorlie in Western Australia.  Breaker has four rigs in action “to expand the resource and identify the outer limits of expanding conceptual open pit(s)”.

Breaker said the Bombora deposit remains open at depth along its entire 2.3km strike extent.  The company is also reportedly having success at a satellite prospect called Crescent, 2km north of Bombora.

Breaker raised A$10.5 million cash at the start of October to take is cash holdings past $13 million.  It budgeted to spend $3.2 million in the current quarter.

Shares in Breaker were down 3% to 33c in afternoon trade – on a downday for the ASX gold patch – capitalising the company at about $60 million. Prior to releasing what it termed a “robust” maiden resource for
Bombora in April, the stock hit levels above 70c during 2017.

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