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Primary Gold (PGO:ASX)

Excellent exploration results at Mt Bundy

1 Video - Aug 17

Primary Gold (ASX:PGO)  has announced outstanding drill results for their recent drill program at the Mt Bundy Gold Project in the Northern Territory.   Highlights of the announcement include:

  • 117m at 1.5 g/t Au, 52m at 1.5g/t Au and 28m at 1.2g/t;
  • The majority of the intercepts were outside and below the current pit design highlighting the potential to extend pit shell;
  •  Drilling now completed however awaiting final results from Rustlers Roost & Quest 29 deposit; 
  • Resource upgrade – 4Q17 (TSI estimate).

Analyst Comment:   This was the first exploration program at the Rustlers Roost deposit in more than 20 years and it didn’t disappoint.  With the stand out result clearly being 117m at 1.5 g/t Au. 

Usually when results over this strike length are released, investors can be sceptical given the potential for drilling to be down dip.  We believe this is unlikely, given it was a vertical drill hole, 200m from the resource area and down plunge from the current pit shell (image above). 

As the majority of these results were outside and below the current resource area and pit design , it is there will be a substantial resource upgrade later this year, which should also see the mine life increase past its current nine years (Scoping Study).

In addition to Mt Bundy, Coolgardie has been flying under the radar since Primary acquired the project last year.  However management has been working hard behind the scenes, as development and potentially mining will commence later this year, with first gold production by 1H18.

Whilst Coolgardie will be a relatively smaller gold operation (35 koz pa to 45koz pa – TSI assumption), it provides a low capital entry point to enter the ranks of gold producer, and more importantly commence generating cash flow for the future development of the Mt Bundy project. 

The information in this email should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions. 

Valuation:  We have maintained our valuation for Primary to $0.35 / share (price – $0.06/share) . We will review this valuation post the resource upgrade at Mt Bundy.

Scoping Study – Valuation & Analysis

1 Video - Apr 17

Primary has released a positive Scoping Study for their Mt Bundy gold project in the Northern Territory.  This video provides:

  • Valuation update;
  • Highlights the key findings; and
  • Discusses the potential upside in the PFS.

Management Update – Scoping Study

1 Video - Apr 17

Interview with Managing Director, Garry Mills for an update on the Scoping Study at Mt Bundy.

Updated analysis – Coolgardie acquisition

4 Videos - Sep 16

Revised update on Primary Gold since the acquisition of the Coolgardie Gold Project. New analysis includes:

  • Valuation update;
  • Site trip to Coolgardie; and
  • Management update.

Coolgardie – Site Trip

2 Videos - Sep 16

Site trip to the Coolgardie Gold Project, 30km south-west of Kalgoorlie in the Western Australia goldfields.  Reviewed:

  • Deposits that make up the project;
  • Existing infrastructure; and
  • Toll treatment opportunities.

Mt Bundy – Site trip

1 Video - Jul 16

Site trip to the Mt Bundy gold project in the Northern Territory, Australia. Review includes:

  • Rustlers Roost, Tom’s Gully and Quest 29 deposits;
  • Existing infrastructure surrounding the project; and
  • Potential processing methodology.

What are resins & how do they work?

1 Video - Jul 16

This analysis includes an explanation of:

  • Why resins are required at Mt Bundy;
  • How resins work; and
  • What operations use resins around the world.

Initiation Report July 2016

9 Videos - Jul 16

Initiation Report includes:

  • Valuation & Investment Analysis;
  • Site trip to the Mt Bundy Gold Project;
  • Review of the Exploration Potential; and
  • Using resins or carbon for the recovery of gold.