Worth Watching: Golden Mile Resources Limited (ASX: G88)
G88 has had a spectacular run during November, from $0.145 on the 2nd, to close at $0.93 yesterday. The company has 51.8M shares on issue, and thus a market cap of $48M. At 30 September 2017 it had cash of $3.8M.
The spectacular share price performance was a result of some excellent first pass results from the Quicksilver nickel cobalt project, located in the South West Mineral Field of Western Australia. The project has been previously explored by other companies, including drilling. However, it has not been systematically drilled, something that G88 has commenced.
The magnetic image below shows G88’s tenement covering a significant magnetic high. It represents a sizeable sliver of greenstone belt within a generally barren granitic/gneissic terrane. Previous exploration along strike did not return any meaningful results.
G88 was no doubt aware of this and thus did not take out more ground. Last week VMS announced that it had an application to the north and south of G88, as did TKL yesterday. Caution is recommended here until exploration by those companies returns positive results. Finally, note the Geological Survey’s map number.
Map Courtesy Geological Survey of Western Australia.
Drilling by G88 has returned numerous wide intersections, such as: 44m @1.24% nickel & 0.08% cobalt, and 28m @ 1.1% nickel @ 0.04% cobalt. It seems that the mineralisation is secondary lateritic, derived from a primary source. Previous exploration has observed komatiitic textures in the rock, komatiite is the typical host for nickel-copper-cobalt-PGE mineralisation. So there is good potential for primary mineralization as well as secondary laterite mineralization.
The company’s other projects are Ironstone Well Gold near Leonora, Lenora East Gold, Darlot Gold and Gidgee Polymetallic.
Watch this stock, Quicksilver could end up hosting a sizeable resource.
My “Worth Watching” series is a brief review of companies that appeal to me. They are in no way a recommendation to buy or sell shares. The reader is advised to do their own research and/or consult with their broker.