Larvotto Resources has unveiled some stunning drill results from its Clarks Gully deposit, part of the company’s Hillgrove gold and antimony mine in New South Wales including 20m grading 8.2 grams per tonne (g/t) gold equivalent and 6m at 17.2 g/t gold equivalent, which have expanded the resource boundaries.
The new results also include additional hits of 10m running at 8.74 g/t gold equivalent, 18m at 7.87 g/t gold equivalent, 11m grading 7.31 g/t gold equivalent and 12m @ 4.06 g/t gold equivalent, highlighting consistent mineralisation along strike to the north of the existing deposit into a previously under-explored area.
Management says the mineralisation continues to improve at depth, with high-grade gold and antimony grades present in sub-parallel mineralised zones.
Given the deposit remains open to the north and at depth, Larvotto is planning another round of drilling to push the boundaries even further.
The reverse circulation (RC) drilling campaign at the Clarks Gully deposit, which covered 4469m was designed to grow the current resource of 266,000 tonnes at 10.6 g/t gold equivalent by stretching the extent of both the strike and depth.
Further assay results from holes that sit 30m further north of the latest hits are expected shortly.
Larvotto Resources managing director Ron Heeks said: “The exciting Clarks Gully drill results released today, including an intercept of 20m @ 8.2 g/t AuEq, should extend and further define the current mineral resource at the high-grade Clarks Gully deposit. The final line of drill assays is still pending but the mineralisation from this drilling and previous results clearly demonstrate the mineralisation continues to the north.”
Clarks Gully is a key component of Larvotto’s Hillgrove project and holds strategic significance because of its high relative content of antimony, with 10,000t of antimony and 17,000 ounces of gold within the 266,000t of ore.
With the silvery-grey metal now soaring to US$37,500 (A$57,800) per tonne, Larvotto has been handed a serious opportunity to cash in on the critical minerals boom.
As a result of its relatively shallow mineralisation, the company says the high-grade deposit is now a prime candidate for early processing at the Hillgrove plant, which could then front-load its cash flow and give the project’s economics an extra boost.
The news of more drilling success at the antimony-rich Clarks Gully would no doubt be welcomed by US Defense Industrial Base Consortium (DIBC) with whom Larvotto recently gained membership.
The consortium is focused on providing a gateway for funding of and the supply of critical metals from organisations that are considered friendly to the US Defense Department. The company’s membership of the US DIBC comes after the Chinese government recently banned the export of antimony amongst other critical minerals. China currently accounts for about 48 per cent of global supply, placing a bow around projects such as Hillgrove that have scale outside of China.
While the drilling continues, Larvotto has also received $14.1 million in fresh funds - $6.1m for an antimony offtake agreement with London-based commodity trader Wogen Resources and $8m from the exercise of company options. The funding injection will support the company’s expedited exploration activities and complete the metallurgical test work essential for the definitive feasibility study, due to be completed in early 2025.
With more drill results, a booming gold and antimony price, plenty of fresh cash, the end of option selling and a near-term liquidity point with the definitive feasibility study, Larvotto appears to have a force 10 tailwind behind it right now and looks as though it could hit the finishing line with flying colours in 2025.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By James Pearson
