KNB
Koonenberry Gold Limited
ASX
Drilling and DHEM completed at Atlantis Cu-Au Prospect
Sentiment:
Exploration Update
3 September 2024 7:59 PM
Koonenberry Gold's drilling program at the Atlantis Cu-Au prospect was cut short by rain, yielding no significant copper or gold assays despite intersecting trace amounts of sulphides, prompting further geophysical work.
Worse than expected
The drilling program was significantly shorter than planned due to unforeseen weather conditions, resulting in fewer drill holes and less data than anticipated.
Delay expected
A significant rain event forced an early termination of the drill program at Atlantis, resulting in a compromised program with only 6 holes completed instead of the planned 16.
Summary
- Koonenberry Gold Ltd (ASX: KNB) announced the completion of drilling and downhole electromagnetic (DHEM) surveys at the Atlantis Cu-Au prospect.
- The planned 16-hole, 792m drilling program was reduced to 6 holes due to a significant rain event in July 2024.
- Despite the shortened program, drilling intersected trace amounts of chalcopyrite (CuS) and sphalerite (ZnS) sulphides, indicating the presence of copper and zinc in hydrothermal fluids.
- The DHEM survey did not identify any conductive zones near the drillholes, suggesting that any significant mineralization is likely further than 50-100m away, potentially at depth.
- No significant copper or gold assays were returned from the drilling; peak assays were 335ppm copper and 0.032g/t gold.
- The company has $1.7M in cash at the end of the June 2024 quarter.
- Further ground geophysical work is planned to identify and prioritize drill targets at Atlantis.
- Approvals are pending for drill testing of targets along the Royal Oak fault at the Bellagio prospect.
Sentiment
Score: 4
Explanation: The results are disappointing due to the lack of significant discoveries and the program being cut short. However, the company remains optimistic about the long-term potential of the project and plans further exploration.
Positives
- Trace amounts of chalcopyrite and sphalerite were found, suggesting the right fluids have passed through the rocks.
- The presence of these sulphides indicates potential for copper and zinc mineralization elsewhere.
- Significant potential remains at Atlantis due to the limited drilling completed.
- Further geophysical work is planned to identify and prioritize drill targets.
- Approvals are pending for drill testing of targets along the Royal Oak fault at Bellagio.
Negatives
- The drilling program was significantly curtailed due to a rain event.
- No significant copper or gold assays were returned from the drilling.
- The DHEM survey did not identify any conductive zones near the drillholes.
Risks
- The rain event significantly impacted the drilling program, limiting the amount of data collected.
- The lack of significant copper or gold assays raises concerns about the prospectivity of the immediate drill targets.
- The DHEM survey's failure to detect conductive zones suggests that mineralization may be located at depth or further away than initially anticipated.
- Delays in obtaining approvals for further drilling could impact the project timeline.
Future Outlook
Further drilling is anticipated at Atlantis, along with additional surface geophysical work such as gradient array EM. Drilling is planned at Bellagio to test the Central Gold Zone and targets along the Royal Oak fault, pending approvals. Drilling of other targets is planned for the following month, subject to approvals.
Management Comments
- ’These results have not explained the source of the high-grade copper mineralisation observed at surface at Atlantis. Importantly, the petrological work confirms that the right fluids have passed through the rocks and significant potential remains along the 6.5km long soil anomaly in structurally prospective zones and at depth. Our focus remains on lining up and drill testing our pipeline of targets which includes Atlantis, Bellagio, our new Royal Oak Fault Targets, Monte Carlo and other pipeline Prospects. Drilling of these targets is planned for next month subject to receiving the necessary approvals.’
Industry Context
The announcement highlights the challenges and opportunities in exploring for copper and gold in a frontier terrane. The company's exploration strategy mirrors that of other explorers in the Koonenberry Belt, utilizing modern geophysical techniques to identify and prioritize drill targets. The reference to G11 Resources Ltd's recent high-grade copper intercepts at Wilandra Central provides context for the prospectivity of the region.
Next Steps
- Conduct additional surface geophysical work (gradient array EM) at Atlantis to better target drilling.
- Drill test the recently identified Central Gold Zone at Bellagio.
- Await approvals for drill testing of targets along the Royal Oak fault at Bellagio.
- Drill test other pipeline prospects including Monte Carlo, subject to receiving necessary approvals.
Key Dates
- June 26, 2024: Atlantis Phase II drilling commenced
- July 5, 2024: Atlantis Phase II drilling terminated early due to rain
- August 2024: Downhole electromagnetic (DHEM) survey completed at Atlantis
- September 4, 2024: ASX announcement regarding drilling and DHEM results at Atlantis
Keywords
Copper, Gold, Exploration, Drilling, Geophysics, Atlantis, Koonenberry Gold, ASX:KNB, Sulphides, Mineralization
KNB
Koonenberry Gold Limited
ASX
Sector: Materials
Filings with Classifications
Better than expected
21 May 2025 9:08 PM
Investment Announcement
- Koonenberry's drilling results at Enmore exceeded expectations, leading to Lion's increased investment.
Delay expected
19 May 2025 6:24 PM
Exploration Update
- The Phase I drilling campaign is now finished due to extremely wet conditions on site with 10 holes for 3,232.6m completed of a planned 3,000m.
Better than expected
28 April 2025 7:18 PM
Exploration Update
- The drill results indicate a potentially wide structural corridor with significant gold intercepts, exceeding initial expectations for the area away from the granite-sediment contact.
Better than expected
15 April 2025 7:34 PM
Quarterly Report
- The drill results at Enmore Gold Project are better than expected, demonstrating potential for both bulk tonnage and high-grade gold mineralization.
Better than expected
13 April 2025 6:49 PM
Exploration Update
- The second drillhole returned a higher gram metre interval (357.9) than the first drillhole (297.5), indicating improved potential.
Better than expected
6 April 2025 6:22 PM
Investor Presentation
- The intercept of 170m @ 1.75g/t gold incl. 18.3m at 9.95g/t gold from first drillhole at Enmore Gold Project, NSW is better than expected.
Better than expected
3 April 2025 12:51 AM
Investor Presentation Announcement
- The assay results of 170m @ 1.75g/t gold from 77m, including 18.3m at 9.95g/t gold from 172.9m are considered better than expected.
Better than expected
1 April 2025 6:57 PM
Exploration Update
- The assay results from the first drillhole exceeded expectations due to the high-grade intercept and broad zone of gold mineralisation.
- The results validate historical drill results, indicating potential for broad and high-grade gold zones.
Delay expected
16 March 2025 6:42 PM
Exploration Update
- The drilling program has been paused for up to one week due to heavy rains associated with ex-Tropical Cyclone Alfred.
Worse than expected
12 March 2025 1:35 AM
Half Year Financial Report
- The company reported a loss of $925,922 for the half-year ended December 31, 2024, indicating worse than expected financial performance.
Capital raise
12 March 2025 1:35 AM
Half Year Financial Report
- The company's ability to continue as a going concern is dependent on raising additional funding either through debt or equity to meet its planned exploration programme.
- The company will be required to raise funds for working capital from debt or equity sources if the above matters are not achieved.
Better than expected
2 February 2025 4:27 PM
Investor Presentation
- The document highlights significant exploration results, including broad, high-grade gold intercepts at Sunnyside, suggesting better than expected potential.
- The commencement of drilling at multiple projects and the joint venture with Newmont indicate a positive outlook and better than expected progress.
Better than expected
23 January 2025 6:03 PM
Quarterly Report
- The company has made transformational acquisitions that have significantly increased the size and potential of its portfolio.
- The company has reported high grade drilling results at the Enmore project.
- The company has completed a capital raise and is well funded.
Better than expected
19 January 2025 4:19 PM
Exploration Update
- The identification of a 4km gold trend and high-grade sampling results are better than expected for an early-stage exploration project.
Better than expected
6 January 2025 5:28 PM
Exploration Update
- The rock chip results are better than expected, with high grades of gold and copper, confirming the potential for significant mineralization.
Capital raise
29 November 2024 12:31 AM
Securities Quotation Application
- An additional 450,000,000 shares are to be issued on December 5, 2024.
Capital raise
28 November 2024 11:47 PM
Annual General Meeting Results
- Approval was granted for a 10% placement capacity.
- Approvals were given to issue shares related to Enmore, Lachlan, and director placements.
Delay expected
28 November 2024 6:42 PM
Investor Presentation
- Planned discovery activity is subject to changes due to various factors including regulatory approvals and inclement weather.
Better than expected
28 November 2024 5:22 PM
Annual General Meeting Report
- The successful acquisition of the Enmore and Lachlan projects significantly expands Koonenberry Gold's exploration portfolio and increases its potential for major discoveries.
Delay expected
26 November 2024 8:41 PM
Securities Issue Update
- The issue date of the Placement Shares was delayed by one day, from December 4th to December 5th, 2024.
Worse than expected
17 November 2024 6:17 PM
Exploration Update
- The second phase of drilling at the Atlantis prospect did not yield significant copper or gold intersections, despite the presence of trace amounts of sulphides, indicating that the targeted mineralisation may be located further from the drillholes or at greater depth than initially anticipated.
Delay expected
17 November 2024 6:17 PM
Exploration Update
- The first phase of air core drilling at Atlantis was terminated early due to limitations in the rig configuration and air pressure, preventing the testing of three identified EM conductors and limiting the extent of the surveyed area.
Capital raise
28 October 2024 7:44 PM
Notice of Annual General Meeting
- A $4.5 million capital raising (before costs) is planned through a placement of shares.
- Directors have committed to subscribing for up to $200,000 of the placement.
Capital raise
16 October 2024 7:55 PM
Investment Announcement
- Koonenberry Gold is undertaking a \$4.5 million capital raising.
Capital raise
16 October 2024 7:20 PM
Investor Presentation
- A capital raising of at least A$2,000,000 is planned, with commitments already secured for A$4,500,000.
- The capital raising will fund the acquisition of the Enmore Gold Project and Lachlan Projects.
Capital raise
16 October 2024 6:54 PM
Acquisition Announcement
- A $4.5 million capital raise via a placement of 450 million new ordinary shares at $0.010 per share.
- The placement was supported by major shareholder Lion Selection Group and new investor Lowell Resources Fund.
- Funds will be used for exploration, capital raising costs, and working capital.
Capital raise
14 October 2024 6:49 PM
Trading Halt Announcement
- A capital raising is planned in association with a material acquisition.
Delay expected
12 September 2024 4:15 AM
Annual Report
- Drilling at the Atlantis Prospect was unable to penetrate to planned depths due to hard and silicified ground, resulting in an early termination of the program.
Capital raise
12 September 2024 4:15 AM
Annual Report
- A share placement and fully underwritten entitlement offer raised $2,352,537 before costs in April 2024.
Worse than expected
3 September 2024 7:59 PM
Exploration Update
- The drilling program was significantly shorter than planned due to unforeseen weather conditions, resulting in fewer drill holes and less data than anticipated.
Delay expected
3 September 2024 7:59 PM
Exploration Update
- A significant rain event forced an early termination of the drill program at Atlantis, resulting in a compromised program with only 6 holes completed instead of the planned 16.
Delay expected
30 July 2024 7:16 PM
Exploration Update
- The drill program in June was terminated early due to a significant rain event.
Delay expected
23 July 2024 8:01 PM
Quarterly Report
- A significant rain event occurred after the reporting period, resulting in demobilisation of equipment and crew, delaying further exploration.
Better than expected
12 June 2024 7:55 PM
Exploration Update
- The gold zone has been extended to the east and 200m to the south, expanding the gold footprint to over 500m x 400m.
Delay expected
27 May 2024 7:18 PM
Exploration Update
- The initial drilling program was terminated early due to rig limitations, preventing the testing of the three EM conductors.
Delay expected
21 April 2024 7:02 PM
Project Update
- Drilling at Atlantis was delayed due to unexpected difficult drilling conditions (hard ground).
Worse than expected
21 April 2024 7:02 PM
Project Update
- The drilling at Atlantis did not reach the target depth due to difficult ground conditions, which is worse than expected.
Delay expected
19 April 2024 4:14 AM
Rights Issue Results and Revised Timetable
- The issue and settlement of Rights Issue shares has been revised from the timetable previously announced to the ASX on 8 March 2024.
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