KNB
Koonenberry Gold Limited
ASX
Quarterly Activities/Appendix 5B Cash Flow Report
Sentiment:
Quarterly Report
23 July 2024 8:01 PM
Koonenberry Gold (ASX:KNB) reports on its activities for the quarter ending June 30, 2024, highlighting drilling results at the Atlantis and Bellagio prospects and a capital raise of $2.35 million.
Delay expected
A significant rain event occurred after the reporting period, resulting in demobilisation of equipment and crew, delaying further exploration.
Summary
- Koonenberry Gold Ltd (ASX:KNB) has released its quarterly report for the period ended 30 June 2024.
- Drilling at the Atlantis Cu-Au Prospect included 18 holes for 892 metres, intersecting sediments with malachite and pyrite.
- A 25m wide zone of anomalous Cu-Au-As-Pb-Zn mineralisation was identified, with significant intersections including 3m @ 0.61% Cu from 9m and 6m @ 0.35g/t Au and 0.57% Pb from 0m.
- Air Core Drilling at Bellagio Au Prospect included 17 holes for 1,506 metres.
- The bedrock gold zone at Bellagio has been extended to the east and 200m to the south, now covering a 300m x 500m area.
- A new interpretation suggests drilling has been sub-parallel to the strike of the gold system.
- The Central Gold Zone at Bellagio is 50m wide and remains open down dip/down plunge and along strike.
- The company completed a capital raising in April 2024, raising $2.35 million before costs.
- As of 30 June 2024, the company had a cash balance of $1.7 million and no debt.
- Operating expenditure for the quarter was $120k.
- A program of 545 soil samples was completed on ~8km strike of the Royal Oak Fault, with a maximum gold result of 20.3ppb Au.
Sentiment
Score: 7
Explanation: The report is generally positive, highlighting successful drilling programs and a solid financial position. However, there are some concerns about delays and the limited scope of initial drilling.
Positives
- Drilling at Atlantis intersected a 25m wide zone of anomalous Cu-Au-As-Pb-Zn mineralisation.
- The bedrock gold zone at Bellagio has been extended to the east and south.
- The Central Gold Zone at Bellagio is 50m wide and remains open.
- The company has a solid cash balance of $1.7 million and no debt.
- The company successfully raised $2.35 million in capital.
- The company has identified prospective targets along the Royal Oak Fault through soil sampling.
Negatives
- The initial drilling program at Atlantis was terminated early due to limitations of the rig configuration and air pressure, preventing the testing of the EM conductors.
- Drilling at Atlantis has only covered a small portion (150m) of the 6.5km long Cu-Au soil anomaly.
- The existing drilling at Bellagio may not have effectively tested the continuity of the gold mineralisation due to its orientation.
- A significant rain event occurred after the reporting period, resulting in demobilisation of equipment and crew, delaying further exploration.
Risks
- Inclement weather can disrupt and delay planned exploration activities.
- Drilling may not always achieve the desired penetration or coverage due to equipment limitations.
- The new interpretation of mineralisation controls at Bellagio may require a significant change in drilling strategy.
- Additional drill permitting is required for drilling along the Royal Oak Fault.
- Photon assay may not be useful for rocks that emit radiation.
Future Outlook
The company plans to resume drilling at Atlantis to test EM conductors and the contact between sediments and volcanics, as well as prospective parts of the soil anomaly. A high impact drill program is being planned at Bellagio. Follow-up geochemical sampling has been completed along the Royal Oak Fault to bring targets to drill-ready status.
Management Comments
- 'During the quarter we executed several programs and importantly were able to get on with the job of drill testing our priority targets at Atlantis and Bellagio,' said Managing Director, Dan Power.
- Dan Power stated that the geological features at Atlantis are consistent with the Stawell-type exploration model.
- Dan Power noted that the new interpretation at Bellagio has significant implications for exploration.
Industry Context
The company is exploring in the Koonenberry Belt in NSW, which is believed to be an extension of the Stawell Zone in Western Victoria, a region known for significant gold deposits. The comparison to the +5Moz Stawell Gold mine suggests the company is targeting a similar style of mineralisation.
Comparison to Industry Standards
- The company draws a comparison between the Atlantis prospect and the +5Moz Stawell Gold mine, highlighting similarities in geology, metal association, sulphide species, and alteration.
- The geological comparison focuses on dimensions, geochemistry, host rocks, mineralisation, alteration, and structural geology.
- The company notes that the gold mineralisation at Stawell has an iron sulphide-arsenic-copper-lead-zinc association, which has also been observed at Atlantis.
Stakeholder Impact
- Shareholders: The exploration results and capital raising activities could impact shareholder value.
- Employees: Continued exploration and drilling programs provide employment opportunities.
- Customers: As an exploration company, KNB does not have direct customers.
- Suppliers: Ongoing exploration activities will require services from drilling companies, assay labs, and other suppliers.
- Creditors: The company has no debt, reducing risk for creditors.
Next Steps
- Resume drilling at Atlantis to test EM conductors and the contact between sediments and volcanics.
- Test prospective parts of the 6.5km long Au-Cu-As-Pb-Zn multi-element soil anomaly at Atlantis.
- Plan a high impact drill program at Bellagio along N-S oriented traverses.
- Complete additional sampling at the Monte Carlo Prospect.
- Obtain additional drill permitting for drilling along the Royal Oak Fault.
Key Dates
- 21 March 2024: Date of notice of meeting regarding incentive performance rights.
- 22 April 2024: Shareholders approved incentive performance rights.
- April 2024: Company completed capital raising of $2.35 million.
- 10-14 April: Drilling at Atlantis Cu-Au Prospect.
- 15-17 April: Drilling at Bellagio Au Prospect.
- 29 April 2026: Expiry date of options exercisable at $0.04 each.
- 30 April 2024: Options quoted on the ASX.
- 3 May 2024: Company issued incentive performance rights to executives.
- Early May: Royal Oak Fault soils program completed.
- 28 May 2024: ASX announcement regarding copper mineralisation intersected at Atlantis.
- 7 June 2024: Change of Company Secretary announced.
- 30 June 2024: End of reporting period; cash balance of $1.7 million.
- Last week of June: Drill rig mobilised to Atlantis to test EM conductors.
Keywords
exploration, gold, copper, drilling, Atlantis, Bellagio, Koonenberry Gold, mineralisation, ASX, soil sampling
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.
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.
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.
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.
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.
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.
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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