Spartan Resources Ltd (ASX: SPR) shares are catching the eye with a very strong gain on Tuesday.
In morning trade, the ASX mining stock is up 23% to a new record high of $1.22.
Why is this ASX mining stock rocketing today?
Investors have been scrambling to buy this gold developer's shares today after it released an update on the Dalgaranga Project (DGP) in Western Australia.
According to the release, the company has updated its mineral resource estimate (MRE) for the 100%-owned gold project, which is located in the Murchison region of Western Australia.
Management notes that this latest MRE update is a pivot towards Dalgaranga as an emerging high-grade underground gold mining operation. This includes the Never Never, Pepper, Four Pillar, West Winds, Applewood, Plymouth, and Sly Fox deposits.
The updated MRE is now 16.1Mt @ 4.79g/t gold for 2,482,200 ounces. This represents a 47% increase in ounces and a 91% increase in grade.
The company notes that this comprises 5.72Mt @ 8.07g/t gold for 1,485,200 ounces at Never Never, 1.78Mt @ 7.66g/t gold for 438,100 ounces at Pepper, and 8.63Mt @ 2.01g/t gold for 558,900 ounces at other underground deposits.
'A pivotal moment'
The ASX mining stock's managing director and CEO, Simon Lawson, believes this is a pivotal moment for the company.
And judging by the way that investors are bidding its shares higher today, the market seems to agree with this view.
Commenting on the MRE, Lawson said:
The delivery of this landmark MRE update is a pivotal moment in our journey and firmly stamps the high-grade Spartan brand on our key project at Dalgaranga. The Spartan team has taken the pieces of a struggling low-grade openpit gold miner and rebuilt it as a highly successful high-grade exploration, discovery and development machine! Importantly, we have created a highly investable gold mining and development company which has established a reputation for consistently delivering value to our shareholders since our recapitalisation in February 2023.
Lawson also spoke very positively about the Never Never gold deposit, noting that it is an exceptional high-grade deposit. He adds:
Since its discovery in mid-2022, the high-grade Never Never Gold Deposit has consistently delivered some of the most eye-catching drill intercepts seen in the Australian gold sector in many years. This MRE update firmly cements its position as an exceptional high-grade deposit, comprising an underground Resource of 1.44Moz @ 9.00g/t gold. This is an incredible outcome only 2 years from discovery and the direct result of a consistent high-grade drill focus, a highly effective drill strategy and the team's extensive experience interpreting, modelling and estimating high-grade gold resources. This Resource will underpin our maiden underground Ore Reserve, which is currently underway and due for delivery in the second half of 2024.
But Never Never could soon be overtaken in importance by the Pepper gold deposit, which is situated adjacent to it. Lawson commented:
Given this new high-grade discovery is in such close-proximity to the development associated with any Never Never underground access scenario, Pepper is the drill team's Priority-1 in-fill and extensional drill target right throughout the second half of 2024. We will focus on closing in the drill spacing and testing extensions to the Pepper Gold Deposit from surface right up to the underground exploration drill drive giving us an underground drill platform to continue this work. The combined Underground MRE for Never Never and Pepper stands at 1.8Moz @ 8.65g/t gold. Enough said!
This ASX mining stock is now up over 400% since this time last year.
