Artemis Resources Ltd (ASX:ARV) ended the March quarter with strong liquidity of $5.45 million comprising $2.23 million in cash and $3.22 million in Novo Resources Corporation (CVE:NVO) shares.
Funds received from the Purdy’s Reward transaction to Novo will be used to further develop the company’s core projects - Carlow Castle Gold-Copper Project and Paterson Central Gold-Copper Project.
With these projects being in Western Australia, there have been minimal COVID-19 disruptions to operations.
RC drilling completed
A reverse circulation (RC) drilling program was completed at Carlow Castle on March 28 with 31 holes drilled for 3,716 metres.
Assays have been submitted to ALS Global in Perth, Western Australia.
Downhole Electromagnetics (DHEM) was completed at Carlow Castle on five drill holes in the drill program.
The final report and processed data will be incorporated with assay results to generate the next drill program.
Paterson site visit
Artemis completed a site visit to the Paterson Central Project on March 10 in advance of its proposed geochemical program.
This included observations of the work currently underway at the nearby Havieron Gold-Copper Project where the Newcrest Mining and Greatland Gold JV currently has a reported 8 rigs in operation.
COVID-19 response
The COVID-19 pandemic has had a limited impact on the company with the recent Carlow Castle drilling program having been completed.
Planned fieldwork at the Paterson Central will depend on restrictions which may be in place at the time.
Artemis will comply with all State guidelines to ensure the health and safety of its workforce, contractors and the community in which it operates.
While the company is in a strong cash position, the board has taken further steps to reduce overhead costs and preserve cash, including executive directors reducing their remuneration by 40%.
Sale of tenements
Novo Resources purchased all rights to two of Artemis’s tenements during the quarter by paying A$820,000 in cash and $1.64 million in shares.
Artemis sold:
- 50% of its interest in tenement E47/1745 including all gold and other mineral rights; and
- 100% of its interest in tenement E47/3443 in which it held a 70% interest through the Karratha Gold Joint Venture.
The joint venture between Novo and Artemis has been dissolved and Novo will have no further interest in tenements other than E47/1745 that were subject to the Artemis-Novo Joint Venture.
Divestment of assets
The company has also been working on several strategies aimed at extracting maximum value from valuable non-core assets.
Artemis has received several incomplete proposals and will be pursuing these to deliver value to all shareholders.
Projects which are under review by the company include:
- Mt Clement Gold (near Northern Star’s Paulsens gold mine);
- Whundo Copper mine (near Radio Hill processing facility);
- Ruth Well – nickel and copper project; and
- Munni Munni – Australia’s largest platinum/palladium (PGE) deposit.