Siren Gold has fired up the rigs at its flagship Sams Creek gold project in New Zealand’s Tasman district, launching 7000m of drilling to beef up its gold resource. With a mining permit decision looming and a scoping study on the horizon, the company is betting big on its ability to stack even more ounces on its already sizeable 824,000 ounce endowment.
The 7000m drilling program is largely infill work, with 6000m set to lift the current 824,000 ounces at 2.8 grams per tonne (g/t) gold from largely inferred to the more accurate indicated category. The remaining 1000m will be dedicated to step-out holes to probe extensions, including the untested Doyles Fold, west of the main resource zone.
Historical intercepts at Sams Creek feature plenty of thick quality hits, such as a 37m intercept grading 3.26g/t gold, a high-grade hit of 9.48m at 9.5g/t and a 12.6m section running 5.53g/t. The results, when paired with mineralised trends of up to 7km long and up to 60m thick, point to a system with plenty of room to grow.
Recent holes outside the resource envelope in addition to the new campaign will feed a resource update to boost ounces and confidence in the new year.
Siren Gold chief executive officer Zane Padman said: “We’re excited to be drilling again at Sams Creek. This program marks the first step in unlocking the full potential of the deposit. With an updated Mineral Resource Estimate (MRE) and Scoping Study to follow, we’re entering a pivotal six months for the project. Key upcoming catalysts include the award of the Mining Permit, the updated MRE, and the completion of the Scoping Study. We have commenced with a single diamond drill rig but will consider increasing this to two to expedite the program.”
Sams Creek sits in the Eastern Takaka terrane which Siren says is a geological cousin to Australia’s Lachlan Fold Belt, home to monster copper and gold deposits like Cadia and Ridgeway.
The company says its mineralisation is hosted in a granite porphyry dyke, slicing through Palaeozoic metasediments. It is classed as an intrusion-related gold (IRG) deposit, with an antimony-mercury-zinc-lead-silver mix in lower grades. Higher up in the deposit, silver dominates with ratios up to 30:1, at deeper depths, gold takes over, with base metals hinting at a source intrusion nearby.
Siren is quick to make global comparisons like Alaska’s Pogo mine (5-million-ounces) or Australia’s Kidston (4-million-ounces) to highlight what IRG deposits can deliver.
The current resource of 824,000 ounces sits within its Main Zone, Bobby Dazzler, SE Traverse and Carapace prospects.
Only 15 per cent of the dyke has been properly drill-tested, leaving most of its 7km strike and 1km dip open for further discoveries.
Notably, the dyke is easily mapped and provides a compelling ongoing exploration target.
A scoping study is also underway over the deposit. Due next year, it will lay out the project’s economics for the first time amidst a sky high $6400 an ounce gold price.
The exploration team is also gearing up at the company’s Queen Charlotte project, where geological mapping, soil sampling and rock chips from historic workings will set the stage for maiden drilling campaigns.
That project’s antimony angle adds a strategic kicker to Siren, with prices for the silvery-white metal sitting pretty at a massive $90,000 a tonne.
With a gold-antimony super blend in waiting, Siren’s exploration push couldn’t be better timed. As the rods spin and results roll in, the next year could put Sams Creek on the map as a cornerstone of New Zealand’s gold resurgence.
The region which has laid dormant for years under anti-mining legislation is finally getting the recognition it deserves, in an underappreciated, resources-rich landscape.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Andrew Todd
