Moho Resources Ltd (ASX:MOH) made headway with drilling programs during the June quarter, receiving high-grade gold intersections from RC drilling at East Sampson Dam prospect of the Silver Swan North Gold Project in Western Australia.
Termination of a JV with Odin Metals Limited (ASX:ODM) on mining lease M27/263 and transfer of the remaining 30% ownership to Moho during the quarter simplified the management of technical programs and removed budget constraints.
This allowed the company to expedite drill programs and mining studies under its own management at East Sampson Dam.
Key terms of the acquisition of Odin’s interest are:
- Moho to pay Odin $120,000 in cash within 30 days of signing;
- Odin to be issued 4.5 million fully paid ordinary shares in Moho at a deemed issue price of 6.5 cents per share (subject to shareholder approval at an EGM to be convened shortly and held within 60 days of signing), and;
- Moho to grant Odin a net smelter royalty of 0.5% on minerals, mineral products and concentrates, produced and sold from the tenement.
The company will aim to extend gold mineralisation at Silver Swan North Project through active drill programs in quarter three and four 2020.
Next steps include:
- Phase 1 RC drill assay results in August 2020;
- Phase 2 RC drill program (25 RC holes for around 2,100 metres) in quarter three;
- Diamond drilling (6 holes for around 600 metres) for structural, geotechnical and metallurgical studies in quarter three;
- Preliminary metallurgical test-work results in quarter three;
- Infill auger sampling of existing gold anomalies in quarter four; and
- Aircore drilling of auger gold anomalies and geophysical targets within M27/263 in quarter four.
Moho anticipates releasing the maiden JORC 2012 mineral resource in quarter four.
Location of M27/263 in relation to regional geology of Silver Swan North Project
Scoping study pending
Moho has also commenced mining studies towards a potential gold production scenario.
Gold mining investigations include:
- Completion of scoping study targeted for quarter one 2021;
- CSA Global engaged to model gold mineralisation at East Sampson Dam;
- RC drill samples selected and submitted for metallurgical test work, and;
- Desktop mine project evaluation ongoing and initial whittle optimisation underway.
Burracoppin gold exploration
During the quarter Moho also announced the 1-metre resampling results of anomalous 4-metre gold intercepts on E70/4688 from the maiden aircore drill program at the Crossroads prospect at Burracoppin in the WA wheatbelt.
Assays from Crossroads showed:
- Gold/silver mineralisation intersected in bedrock;
- Up to 0.61 g/t gold and 5.53 g/t silver in bottom of hole samples; and
- Three holes ended in greater than 0.1 g/t gold.
The next phase of drilling to follow-up bedrock gold mineralisation is planned for quarter four 2020.
Aircore drilling at Crossroads prospect of the Burracoppin project in March 2020 with ‘low impact rig’.
Farm-in and joint venture
On July 28, 2020, Moho announced that it had completed its commitment as per the farm-in and joint venture letter agreement with IGO Ltd (ASX:IGO) to earn a 70% interest in E70/4688.
Moho and IGO have now formed an unincorporated joint venture for the purposes of exploring and, if warranted, developing and mining on E70/4688.
IGO’s 30% interest will be free carried until completion of a pre-feasibility study, at which time IGO may elect to contribute pro-rata to ongoing work or convert its 30% interest to a 10% free carried interest.
Funding mining studies
On April 24, 2020, Moho completed a fully subscribed placement to professional and sophisticated investors, raising $797,316 (before costs) at an issue price of 6.5 cents per share.
Funds from the placement advanced the East Sampson gold prospect through a scoping study towards a gold mining proposition and exploring highly prospective gold projects; Empress Springs in Queensland and Burracoppin in WA.
During the quarter, the company was also granted an allocation of up to $1.05 million of exploration credits for the 2021 income year under the Junior Mineral Exploration Incentive (JMEI) scheme.