Significant visible gold in Alexander River drillhole AX84. Source: Siren Gold.
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Shares in Siren Gold (SNG) soar this morning after the company unveiled an impressive gold intercept from drilling at its Alexander River project in New Zealand
  • Diamond drillhole AX84 returned 2.5 metres at 358.2 grams per tonne (g/t) gold, including 0.6 metres at 1,460 g/t gold
  • It ranks as the third-best gold result collected by an ASX-listed company this year and is further proof of the similarities between Alexander River and the prolific Fosterville gold mine
  • The company will now target further down plunge of AX84 as well as other key areas within the broader Reefton land package
  • Siren Gold was up 34.29 per cent to 47 cents as of 1:19 pm AEDT

Shares in Siren Gold (SNG) have soared this morning after the company unveiled an impressive gold intercept from drilling at its Alexander River project in New Zealand.

In a statement to the ASX, the Perth-based explorer said it had intersected “significant” visible gold in diamond drillhole AX84 — the deepest hole completed to date at the wholly owned project, located 26 kilometres southeast of the Reefton township.

Over an interval of 2.5 metres, AX84 returned 358.2 grams per tonne (g/t) gold, including a whopping 1460 g/t gold over 0.6 metres.

Managing Director Brian Rodan said it was “very gratifying” to achieve such a spectacular bonanza hit.

“The company believes this intersection provides additional credence to our long-held belief that the deeper we drill at Alexander River the more visible gold we will intersect and the same holds true for our Big River, St George and Lyell projects,” Mr Rodan said.

The AX84 intersection is also thought to be further proof of the similarities between Alexander River and the high-grade Swan Zone at the prolific Fosterville gold mine in Victoria, thought to be the world’s highest-grade and lowest-cost gold mine.

Siren Gold explored the “compelling comparisons” between the broader Reefton Project — the land package that includes the Alexander River, Big River, Lyell and Reefton South projects — and Fosterville earlier this year.

The company found that the “similarities between Siren’s Alexander River project and Fosterville at this early stage are particularly compelling, with the structural setting and age being very similar,” according to a March 25 press release.

Located 20km from Bendigo, Fosterville is owned by Canadian mining giant Agnico Eagle Mines, which took over the mine through its merger with Kirkland Lake Gold in February this year. In 2021, Fosterville produced 509,601 ounces of gold — significantly higher than the original target of between 400,000 and 425,000 ounces — and processed 677,899 tonnes of ore at an average grade of 23.7 g/t gold.

More broadly, the success of AX84 has shown that Siren Gold can hold its own in the frenzy of exploration work that’s surged since the pandemic began. 

According to RSC Consulting, which tracks drilling results from ASX-listed companies, the drillhole ranks just outside the top 10 for all drilling results collected last year, but within the top 10 for gold-specific intercepts. In 2022 to date, AX84 currently ranks as the third-best gold result.

Over the next quarter, Siren Gold will target the McVicar West shoot further down plunge of AX84 and the Bull West shoot below it, as well as other tenements within the Reefton package.

“Siren Gold is currently progressing a significant amount of work at its Reefton gold project and with the commencement of our third rig at Big River the company certainly looks forward to exciting times ahead on our virtually untouched Reefton Goldfield tenement package,” Mr Rodan said.

Shares in Siren Gold were up 34.29 per cent to 47 cents as of 1:19 pm AEDT.

SNG by the numbers
More From The Market Herald

" Beamtree (ASX:BMT) signs A$10.1m RippleDown contract with Ampath

Beamtree (ASX:BMT) has signed a US$7 million (A$10.1 million) five-year contract with Ampath for its RippleDown…
Beamtree (ASX:BMT) - CEO, Tim Kelsey

" Beamtree (ASX:BMT) accelerates international growth with first NHS contracts

Beamtree (ASX:BMT) secures its first NHS (National Health Service) contracts worth about $540,000 in combined annual…
Beamtree (ASX:BMT) - CEO, Tim Kelsey

" Beamtree (ASX:BMT) sees 91pc boost in revenue

Health data analytics company Beamtree (ASX:BMT) has reported a 91 per cent boost in group revenue…

" EML Payments (ASX:EML) collaborates with Correos to revive Spanish cultural sector post COVID-19

EML Payments (ASX:EML) has partnered with its key European client Correos, Spain's national post office network…