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NTM
A unique pro Australian junior go
MINING | NTM GOLD
GOLD
oposition in the old exploration sector
In April 2020, ASXlisted NTM Gold Limited acquired a 426 km² gold tenement package called the Wells Group in the Leonora region of Western Australia (WA). This deal expanded its vast footprint within the Redcliffe Gold Project to over 720 km². The Redcliffe project is centred around the Mertondale Shear Zone – a geological linking structure between two regional shear systems stretching across WA’s Eastern Goldfields. NTM considers the Wells Group, located in the Northern extension of the Mertondale Shear, to be a highly prospective early greenfields stage opportunity and will focus its initial work on further geological and data review followed by targeting studies prior to on-ground work.
In search of mineralisation NTM has been involved in the Redcliffe project for the best part of 20 years through various company guises but it was wasn’t until around 2015 that it became the primary focus for the Australian gold junior. “We’ve been quite successful in our exploration,” says NTM’s managing director Andrew Muir. “In 2017, we found a deposit called Bindy, then in 2018 we found one called Hub and in 2019 we found Redcliffe East. “We’ve been going pretty well of late and it’s a highly prospective area. Given the history of the region, it’s still relatively underexplored. The Redcliffe project largely tracks the Northern end of the Mertondale shear. The vast majority of our exploration to date has focused on that zone.” Consistent drilling over the last few years has allowed NTM to increase the Redcliffe resource to over half a million ounces of
MINING | NTM GOLD
gold - 537,862 oz to be precise
deposit in October 2018. The
terms of ounces, or we could
– while making a name for
company has been steadily
toll treat through the existing
itself on the junior exploration
drilling the deposit out since
plants nearby. And any one of
market in Australia with the
then and delivered some
the companies that own those
results of its recent drilling
fantastic grades close to
plants might want to take us
campaigns.
surface in June and July last
over to feed our ore through
year.
their facilities.”
now because the market
Near surface grades as high
Following the exciting drill
is definitely rewarding
as 468 g/t Au at the Hub
results of last year, NTM aims
exploration success, even
deposit seem to have caught
to publish a resource estimate
with the uncertainty relating
the attention of the investor
for the Hub deposit by the
to the COVID-19 outbreak
market, which has resulted in
middle of 2020 and remains
overhanging the market. There
rises in both the share price
confident of achieving this
has been an unusually high
and market capitalisation of
despite the state restrictions in
number of discoveries made
the company over the last nine
place to prevent the spread of
in Australia over the last six
months.
COVID-19 since March.
Having gained the attention of the market with attractive
Business as usual
grades, Muir believes that
The location of the Redcliffe
interest has been retained by
project in the vast expanses
NTM’s most notable
the recognition of the Redcliffe
of WA’s Eastern Goldfields –
exploration success of late
project’s strategic location,
where the nearest inhabited
was the discovery of the Hub
within trucking distance to
area is the historic mining
four existing processing plants
town Leonora 40 km away
in the region.
– has meant that NTM’s
“It’s interesting right
months and they are being rewarded with investment.
An exploration Hub
“We’ve been quite successful in our exploration. In 2017, we found a deposit called Bindy, then in 2018 we found one called Hub and in 2019 we found Redcliffe East” Andrew Muir, managing director NTM Gold
operations haven’t been “Our strategic location gives
significantly impacted by
us optionality on how we
social distancing measures
monetise Redcliffe. We could
and drilling has continued as
build our own plant if we
normal.
get enough critical mass in
MINING | NTM GOLD
However, the company has put an infectious diseases policy in place, has modified some of its commuting procedures and is continually assessing the risks as Australia and the world faces up to the threat of a global pandemic. Although the company is still working on the numbers for the Hub deposit ahead of the maiden resource, Muir reveals that the deposit has the potential to be not just the biggest deposit in the Redcliffe project, but also the highest grade. NTM has relied on several drilling outfits to undertake its exploration activities over the last few years, including ASX200 mining services group Ausdrill (now part of the Perenti Group) as part of a drill-for-equity arrangement. “The company most consistently on-site has been Challenge Drilling. They have provided excellent RC and AC drilling services. We’ve
MINING | NTM GOLD
“Regionally, we have high grade oxide mineralisation close to surface that can be mined and processed cheaply. The downstream optionality of the project is a key feature, as are the high grades we have seen, which are always a good thing”
Exploration Drilling (PXD)
Broadening the horizons
and our diamond drillers are
After completing RC and
normally Westralian Diamond
DD campaigns for the Hub
Drillers (WDD).
deposit earlier this year, NTM
also recently used Precision
is now looking to step away “All our drilling contractors
from intense resource-style
have done a great job despite
drill outs in favour of a wider
some of the ground at Hub
regional AC drilling campaign
being quite tricky at times. It’s
looking for new deposits. The
something we need to try and
company hopes this kind of
understand to see if we can use grassroots exploration will some different techniques to
be key to achieving its total
overcome those issues.”
exploration target of 1.382.24 million ounces (Moz) at Redcliffe.
MINING | NTM GOLD
“In our current AC
base, but that drilling is getting
can do that is by testing new
programme, we are testing
a lot more expensive due to
areas, and that’s we’ll do.”
some of the major structures
the depths of the holes and we
that aren’t on the Mertondale
don’t think any of these will be
Shear and may provide a
gamechangers.
Finding a niche in the elevated gold market
of these targets haven’t ever
“Instead we can get better
The gold spot price has
been drilled so we are doing
bang for our buck by finding
strengthened in recent weeks
some higher risk exploration
new deposits as we think
and months amid the global
but hopefully we will be
the ground has potential.
uncertainty and market
rewarded.
We found the Hub deposit
volatility brought about by the
through AC drilling and that’s
COVID-19 pandemic. A high
“We could go and drill out the
made a huge difference to the
gold price can only mean good
deposits we already have at
awareness of the company. So,
news for all players in the gold
depth to increase the resource
the aim is to find more of those
mining sector, including early
deposits and the only way you
stage explorers like NTM.
different style of deposit. A lot
MINING | NTM GOLD
As existing producers operate under higher margins in an elevated gold market, a well-located outfit like NTM may be ripe for the picking according to Muir. Indeed, many analysts are already predicting increased levels of M&A in the gold sector as established players making higher returns look to cherry pick smaller assets to bolster their portfolios. Alternatively, should NTM want to go it alone, higher gold prices will make it easier to start up the operation, because margins are going to be higher and the company will make better returns. Ultimately, a high gold price is good for sentiment, says Muir. “Whether you’re a producer or an explorer, if the gold price is continuing to go up, people are going to want to invest in the gold sector.� So, how does NTM differentiate itself from the sea of explorers and producers
ANDREW MUIR, NTM GOLD MANAGING DIRECTOR
MINING | NTM GOLD
market? Muir believes that
mined and processed cheaply.
the combination of sustained
The downstream optionality
exploration success over
of the project is a key feature,
the last three years and the
as are the high grades we
optionality on monetising
have seen, which are always a
the Redcliffe project is key
good thing.”
in making NTM a unique proposition. “Regionally, we have high grade oxide mineralisation close to surface that can be
NTM GOL D AT A G L A N C E
STOCK TICKER ASX:NTM
MARKET CAPITALISATION
US$34.2 million (as of May 01, 2020)
j
Published by Anderson Murray Media Ltd
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