Why invest in Spitfire Materials?
A revitalised growth strategy centred on a high-quality portfolio of gold assets in Australia
Spitfire Materials has embarked on a new growth strategy, centred on gold exploration in Australia. Under this strategy, the Company has recently acquired the England Gold Project in the prolific Laverton gold district of Western Australia; the Yoda gold prospect in the Northern Territory; and also announced plans (subject to shareholder approval) to acquire unlisted Australian gold company Admiral Gold Limited (“Admiral"), which hold farm-in and joint venture agreements over two highly prospective gold exploration assets - the Alice River Gold Project in North Queensland and the Mulwarrie Gold Project in Western Australia.
Admiral has conducted significant due diligence on both projects, including field reconnaissance and confirmation of historical sampling. This has resulted in the definition of a number of drill-ready targets which Spitfire intends to pursue once the acquisition has been completed.
This revitalised exploration portfolio offers outstanding potential for shareholder growth, with intensive exploration programs planned across the Company’s key projects in 2017.
Alice River Gold Project, North Queensland
The Alice River Project, located 460km north-west of Cairns in NE Queensland, covers a total area of 875km2 and has a long historic of prospecting and exploration work spanning more than a century. The gold mineralisation occurs at several prospects along the Alice River Shear Zone, a 50-60km long north-west trending set of shear zones located with the Alice-Palmer Structural Zone. Admiral is the first company to consolidate this entire prospective belt.
All of the significant gold mineralisation identified historically occurs within granted Mining Leases. A large amount of drilling was completed along the Alice River shear zones during the period 1987 to 1998 (469 holes for a total of 18,294.7m drilling including 8,322 assays).
Mulwarrie Gold Project, WA
The Mulwarrie Gold Project is located 150km north-west of Kalgoorlie in the Ularring District of the North Coolgardie Mineral Field. The project encompasses two contiguous tenements within a 10km wide greenstone belt which forms the north-west extension of the Coolgardie Line. The structurally dominant, north-trending Mt. Ida fault lies approximately 4km east of the Mulwarrie Mining Centre.
An experienced Board & Management team with a track-record of exploration and corporate success
Spitfire has an experienced and highly-credentialed Board and senior management team, with a strong track-record in exploration, development and mining. As part of the proposed acquisition of Admiral, the Company has announced its intention to appoint highly experienced Australian mining executives Mr Neil Biddle and Mr John Young as Directors of the Company.
Mr Biddle and Mr Young both played an instrumental role in the growth of Australian lithium developer, Pilbara Minerals (ASX: PLS), and were closely involved in the discovery and development of Pilbara Minerals’ world-class Pilgangoora Lithium-Tantalum Project.
Well-funded to pursue our exploration goals
Spitfire has recently announced that it has received firm commitments from existing and new sophisticated and professional investors to raise a total of $4.5M through a heavily oversubscribed conditional share placement. Subject to shareholder approval, the proceeds of the placement will be used to advance exploration programs across the Company’s portfolio of Australian gold projects.
Strong growth outlook for gold
The Australian gold sector is experiencing a high level of investor interest and support, underpinned by the strength of the Australian Dollar gold price and the strong outlook for the sector both domestically and internationally.
Gold is one of the world’s most versatile metals, with approximately 45% of gold today used to produce jewellery, 45% used in the form of investments and finance, and the remaining 10% used for technological and industrial applications (of which around 75% is used for the manufacture of electronics).