G11 Reports 9.3m at 1.42% Cu and 0.11 g/t Au in New VMS Discovery
G11 Resources reports significant copper-rich massive sulphide intersections at its Peveril-Grasmere project, confirming a mineralised zone extending over 1km strike and 500m depth. The company is also advancing strategic reviews for acquisitions complementary to its Koonenberry Project.
- Significant copper and gold intersections from wide-spaced drilling at Peveril-Grasmere
- VMS mineralisation confirmed over 1km strike and 500m depth with distinct electromagnetic signature
- Moving Loop Electromagnetic surveys identify further exploration targets despite conductive overburden
- Focus maintained on Koonenberry Project with potential acquisitions under review
- Quarterly cash flow reflects reduced operational activity post extensive drilling campaign
Strong Drilling Results at Peveril-Grasmere
G11 Resources Limited (ASX: G11) has delivered encouraging results from its December 2024 quarterly exploration activities, highlighting significant copper-rich massive sulphide intersections at the Peveril-Grasmere project within the Wilandra Copper Corridor of the Koonenberry Belt, NSW. The wide-spaced drilling program intersected notable mineralisation including 9.3 metres at 1.42% copper and 0.11 g/t gold, and 8.3 metres at 1.03% copper with elevated zinc and silver values. These results reinforce the presence of a volcanogenic massive sulphide (VMS) system extending over 1 kilometre in strike length and to depths of 500 metres, starting near surface.
Geophysical Confirmation and Exploration Implications
Downhole electromagnetic (DHEM) surveys conducted alongside drilling have confirmed that the VMS mineralisation produces a distinct electromagnetic signature, which correlates with the width and grade of copper-rich zones. This geophysical response provides a powerful tool for targeting further mineralisation both at depth and along strike. However, Moving Loop Electromagnetic (MLEM) surveys over adjacent areas encountered challenges due to highly conductive overburden, complicating bedrock source modelling. G11 plans to follow up these anomalies with geochemical sampling to prioritise future drill targets.
Strategic Focus on Koonenberry and Acquisition Reviews
While the Peveril-Grasmere results have energized exploration efforts, G11 Resources has strategically deferred drilling at other prospects such as Black Hills and Cymbric Vale to concentrate resources on the Wilandra Copper Corridor. The company is concurrently reviewing several potential acquisitions that complement its flagship Koonenberry Project, which spans over 3,300 square kilometres and hosts multiple prospective mineral corridors. These acquisition reviews, focused on advanced gold and copper opportunities, continue into 2025, reflecting the board’s commitment to enhancing shareholder value through disciplined growth.
Financial Position and Outlook
G11’s December quarter cash flow report reveals a net cash outflow from operating activities of $166,000 and investing activities of $1.295 million, primarily reflecting exploration expenditure. The company ended the quarter with $2.234 million in cash, sufficient to fund approximately 1.5 quarters of current expenditure. Management has indicated a planned reduction in exploration intensity as results are analysed and new targets are prioritised, with no immediate plans for capital raising.
Looking Ahead
The confirmation of a continuous copper-rich VMS system at Peveril-Grasmere marks a significant milestone for G11 Resources, validating its exploration model and the prospectivity of the Koonenberry Belt. The upcoming phases of exploration will likely focus on expanding the known mineralised zones and testing newly identified geophysical anomalies. Meanwhile, the company’s pursuit of complementary acquisitions could accelerate its transition from explorer to developer, positioning G11 as a notable player in the copper-gold sector.
Bottom Line?
G11’s promising drilling results and strategic acquisition focus set the stage for a pivotal year in unlocking the Koonenberry Belt’s potential.
Questions in the middle?
- Will further drilling confirm the continuity and scale of the Peveril-Grasmere VMS system beyond 1km strike?
- How will G11 prioritise and finance potential acquisitions alongside ongoing exploration?
- What impact will the conductive overburden have on the effectiveness of geophysical surveys in adjacent targets?
