Arrow Minerals Ltd (ASX:AMD) has ended FY2019 in a strong financial position with cash, receivables and listed investments worth more than $3 million immediately after the Boromo Gold Ltd acquisition.
As a result, the company is set to further develop its gold-focused exploration strategy in Burkina Faso and Western Australia without the need for additional funding.
Following the Boromo transaction in August, Arrow now owns a 100% interest in six high-quality gold exploration projects, totalling 2,013 square kilometres in Burkina Faso, with drill-ready targets at Divole East and Divole West.
Since June 30, Boromo completed a 2,400-metre reverse circulation drilling program at Divole East, where previous drilling intersected 9.9 metres at 4.3 g/t gold.
Focus for coming year
Further encouragement from the recent drilling at Divole East, and the underexplored nature of the other Burkina Faso projects means that Arrow believes shareholder interests are best served by focusing its efforts on this region in the coming year.
Accordingly, the company has restructured its board and management to add ‘significant’ west African gold exploration, including the appointment of Howard Golden as chief executive officer as well as Tommy McKeith and Morgan Bell as non-executive directors.
Managing director Steven Michael will continue as an executive director while non-executive director Nicholas Ong has retired from the Board after eight years.
Strickland Gold Project
The company’s other major gold asset is the Strickland Gold Project about 100 kilometres west of Menzies and 180 kilometres north-east of Southern Cross in the Goldfields region of WA.
A major gold exploration program was executed at Strickland in the first half of the year with a total of 412 aircore holes drilled for 17,000 metres covering the T2, T6 and T11 prospects.
Several encouraging zones of near-surface mineralisation were identified through these programs and require follow-up, including 16 metres at 1.9 g/t gold and 9 metres at 2.6 g/t at the T6 prospect.
Malinda Lithium Project update
At Malinda Lithium Project in the Gascoyne region of WA Arrow completed soil and rock chip sampling aimed at refining prospects for further evaluation.
The company also completed a hyper-spectral survey which promises to provide project-scale context for this work.
Arrow will evaluate whether this project represents an opportunity for continued exploration under its management or whether divestment better reflects the company’s gold-focused strategy.
JV with Independence
The company's joint venture with Independence Group NL (ASX:IGO) over the Plumridge Nickel Project in the Fraser Range continued during the year, with Independence reaching 90% ownership through completion of $5 million in exploration expenditure.
This included completion of ground-based electro-magnetic surveys and limited drilling.
Arrow is now a 10% contributing JV partner to this project, which continues to receive majority funding from Independence.