Pepper Deposit: Turning Heads with High-Grade Gold
The Pepper deposit is rapidly emerging as a high-grade powerhouse within Spartan’s portfolio. Recent drilling continues to deliver gold grades that even the most seasoned geologist might find hard to believe. Highlights include:
- 20.61m at 10.02g/t Au
- 13.79m at 46.32g/t Au, including a dazzling 5.0m at 111.62g/t Au
- 18.49m at 19.63g/t Au, with a core zone of 6.80m at 30.94g/t Au
These results are not just impressive, they place Pepper in a league of its own in terms of grade and continuity. This confirms its potential to become a high-grade production hub, supporting Spartan’s vision of a 1.48Moz deposit at Dalgaranga, blending Pepper’s riches with the company’s existing resources.
Near-Mine Drilling: More Discoveries to Come?
Beyond Pepper, Spartan’s near-mine exploration is also turning up promising results. Drilling at Never Never North, Patient Wolf, and below the Golden Wings pit is showing that Dalgaranga’s gold-bearing structures still have more to offer:
- 10m at 5.77g/t Au from Patient Wolf
- 7m at 6.09g/t Au, including 1m at 39.15g/t Au from Never Never North
- 30m at 2.70g/t Au from Golden Wings
These results suggest that Spartan is just scratching the surface of what could be a multi-million-ounce district. As CEO Simon Lawson points out, Dalgaranga is shaping up to be a “belt-scale high-grade system” with numerous targets along its mineralised corridor. With a trio of drill rigs on site and more results expected, it’s clear Spartan has more than one gold card up its sleeve.
What Analysts Are Saying: Solid but Cautious
Patrick Streater from Argonaut acknowledges the impressive results but is keeping his feet on the ground. The HOLDrecommendation reflects the fact that while the resource is growing, the next major catalyst — extensional drilling at Pepper — is still to come. Until Spartan can firm up its full potential, the price target remains at $1.40.
However, Streater notes that the infill drilling is pointing to higher grades than initially expected, which should bode well for the company’s production profile. Pepper is shaping up to be the first stoping front when Never Never enters production. The grade uplift from recent results, coupled with an increase in the mining inventory, has Streater bullish on Pepper’s long-term contribution.
Conclusion: A Golden Future Beckons
While analysts may be sticking with a HOLD, there’s no denying the excitement building around Spartan’s Dalgaranga Gold Project. The Pepper deposit continues to surprise with its high-grade hits, and near-mine exploration suggests plenty more gold is waiting to be unearthed. With the stock trading close to its price target and a series of catalysts on the horizon, investors would do well to keep a close eye on Spartan Resources.
The next phase of extensional drilling could be the key to unlocking a much larger story, one that could turn this $1.5 billion company into a true leader in the Australian gold space. For now, Spartan is well-positioned to deliver on its belt-scale ambitions, and the market is clearly paying attention.
