Moho Resources Ltd (ASX:MOH) is expected to see a steady and positive news flow from ongoing exploration activities at its projects in Australia, according to research firm Independent Investment Research’ (IIR) initiation report.
IIR noted that Moho has a highly prospective gold and nickel exploration and pre-development portfolio with this being confirmed by results of work to date.
With an enterprise value at around $6 million, Moho is highly leveraged to exploration success, according to IIR.
The following is an extract from IIR’s initiation report:
SIGNIFICANT VALUE UPSIDE...
Ongoing activities by Moho Resources (“Moho” or “the Company” have highlighted the quality and potential of their three properties, which have been the sole focus since listing in November 2018.
The most advanced property is Silver Swan North, located on the eastern flank of the KanownaScotia Dome, and adjacent to Poseidon Nickel Limited’s (ASX: POS, “Poseidon”) Black and Silver Swan deposits, and the more recent Golden Swan discovery.
Silver Swan North is located just 50 km NE of Kalgoorlie, and within trucking distance of several mills, which is critical for the Company’s plans of developing the East Sampson Dam gold deposit as a toll treating operation, to provide funds for ongoing activities. The 21,600 oz East Sampson Dam deposit is shaping up to be a reasonable development asset, with a grade of 2.5 g/t Au at a 0.5 g/t cut in soft, potentially free dig near surface oxide material. Mineralisation is open, with the potential to add ounces, and with aircore drilling on adjacent gold prospects currently underway.
There is also the potential for additional nickel discoveries at Silver Swan North, with the Company applying for tenements along strike from, and adjacent to Poseidon’s nickel assets.
Burracoppin and Empress Springs are earlier stage properties, located over what is, in our view, high prospective ground in different geological terranes. Areas of both properties are held under a joint venture (“JV”) with Independence Group (ASX: IGO, “IGO”).
Burracoppin is located over high grade metamorphics of the South-Western Gneiss Terrane of the Yilgarn, and more particularly the Tampia Shear Zone, which extends to the south to Ramelius Resources’ (ASX: RMS, “Ramelius”) Tampia operation, which has resources of 460,000 oz. The terrane is largely underexplored (explorers have preferred the low hanging fruit of the Eastern Goldfields), however work by Moho, including drilling, has returned very positive results, and indicated that there are similar metamorphosed greenstones to those hosting Tampia. Assay results are awaited from a recently completed daimond drilling programme.
South of the historic 1.2 Moz Croydon Goldfield in North Queensland is the Empress Springs property, where the Company is exploring for large mineral systems within the Croydon Volcanic Complex, considered similar to the Gawler Range Volcanics in South Australia, which host world class iron oxide coper gold (“IOCG” mineralisation. Like Burracoppin, the Empress Springs project is underexplored, with one reason being the presence of up to 75 m of sedimentary cover.
The Company has taken a “Mineral Systems” approach to exploration at Empress Springs, and has recognised the potential to host significant mineralisation, with the property being located over crustal scale structures, which are commonly foci for large scale mineral systems. Work completed to date has provided very positive results, including hydrogeochemistry, that highlights several prospects, and which the CSIRO has stated are within the top 1% of hydrogeochemical anomalies that they have defined in Australia.
KEY POINTS
Quality exploration and pre-development portfolio: Moho has a highly prospective gold and nickel exploration and pre-development portfolio with this being confirmed by results of work to date.
In a proven mining district with established infrastructure: The Kalgoorlie region of Western Australia is a world class mining destination, with well developed transport and utility infrastructure, and ready access to skilled labour and mining services.
Experienced personnel: Company personnel, consultants and technical advisers have had extensive experience and success in junior companies and exploration overall - the Company has built up a very strong technical advisory team which includes leaders in their respective fields.
Leveraged to exploration success: With an enterprise value (“EV”) at around A$6 million, Moho is highly leveraged to exploration success.
Steady news flow: We expect to see a steady and positive news flow with ongoing exploration activities.