Assays returned from Lefroy Exploration’s Burns project, headlined by a 60-metre copper-gold intersection, kick-started a frenzy of on-market buying on Tuesday. The company’s shares peaked 340 per cent higher in intraday trade with more than half its issued capital changing hands.
The initial ten holes of a 22-hole reverse circulation and diamond drilling program at Burns include a 60m strike going 5.22 grams per tonne gold and 0.38 per cent copper.
Lefroy shares hit an intraday peak of $0.90 having settled Monday’s session at $0.205. On Tuesday the share price closed at $0.69 – still an eye-catching 240 per cent higher on the day. Notably, $45 million worth of shares changed hands during the day in what is now an $80-million market cap company.
The Burns drilling program began earlier in the year and Lefroy says the latest assays are a meaningful new development on the under-explored eastern side of the Burns anomaly given the intersection is inside fresh hematite altered porphyry and remains open-ended.
The premier result included a higher-grade core within the 60m drill hit of 20m at 12.2 g/t gold. 0.87 per cent copper and 1.7g/t silver.
Lefroy says the presence of native copper in the intersection is unusual and represents a new opportunity in the area that has not readily yielded economic copper discoveries.
The development offers fresh hope for assays still pending too as evidence persists that the Burns system could be a more extensive porphyry-style intrusion according to the company.
Intrusive-related copper-gold mineralisation hit the headlines last year in Western Australia following the lucrative Gold Road Gruyere and De Grey Mining Hemi discoveries.
The Burns copper-gold prospect is located on the eastern margin of a large interpreted felsic intrusion, known as the Burns Intrusion. The region has captivated prospectors since the mid-80s when the area around Lake Randall was targeted for its gold and base metal potential. Octagonal Resources grabbed everyone’s attention when it revealed significant gold and copper anomalisms in weathered rock back in 2011. Subsequent RC drilling unveiled impressive broad zones of gold and copper mineralisation.
Copper’s momentous price run lately saw it soar past $9,000 recently to an all-time high set in the same year as Octagonal’s discovery nearly a decade ago. Supply tightness for the red metal is increasing as the planet unshackles itself from the grip of pandemic lockdowns and shuttered factories.
Investors have been hoarding copper on a bet that the unprecedented stimulus from Governments worldwide will unleash numerous industrial projects that are particularly reliant on copper. The renewable energy and electric vehicle markets are also sucking up vast volumes of the sought-after metal.
Lefroy is now eagerly awaiting results for the remaining 12 RC holes while core from the diamond drill tails is on its way to the labs. A collection of individual 1m samples has also been completed by Lefroy with results also expected in late March too.
Interestingly the 60m intersection was mineralised all the way to the end of the hole begging the question – just how big could this thing be?
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