Saturn Metals Limited (ASX: STN) December 2024 Quarterly Activities Report
Tragic Incident
The December quarter was marked by the tragic passing of a Challenge Drilling employee at the Apollo Hill Gold Project. Ian Bamborough, Managing Director of Saturn Metals Limited, expressed his condolences, stating, “Words cannot adequately express the enormous impact this has had on everyone across the Company, our partners and the wider resource industry.”
Apollo Hill Gold Project Development
Significant advancements occurred in the Prefeasibility Study for the Apollo Hill Gold Project, which boasts a current resource of 1.84 million ounces. The project has seen extensive progress, including resource drilling, metallurgical test work, hydrogeology assessments, geotechnical evaluations, and environmental studies. The resource-focused Reverse Circulation (RC) drilling program is expected to enhance the mineral resource ahead of an update scheduled for early Q1 2025.
Drilling Results
Recent results from the project have shown promising high-grade gold intersections, indicating the potential for resource growth. The most notable findings include:
– 12m at 2.98g/t Au from 246m (AHRC0968).
– 34m at 1.29g/t Au from 266m (AHRC0973).
– 31m at 1.03g/t Au from 213m (AHRC0967).
Further drilling activities have been retired temporarily following the incident but resumed in January.
Exploration and Water Supply
A detailed hydrogeological assessment for groundwater extraction has been submitted to the Department of Water and Environmental Regulation (DWER) to secure sustainable water for the project. Regional exploration has identified significant gold trends in freshly accessible areas near Apollo Hill, with aircore drilling completing 10,552m across previously unexplored terrain.
Financial Overview
Saturn Metals reported a cash position of $9.5 million as of 31 December 2024. Despite a net cash outflow, the company says it remains financially robust, supported by recent fundraising activities. The latest cash flow reports detailed payments of $3.8 million for exploration and evaluation and $0.3 million for administration costs during the quarter.
Future Outlook
The company plans several initiatives for the upcoming March quarter, including the appointment of a lead engineering firm for the Pre-Feasibility Study, ongoing drilling programs, and continued environmental surveys. An interim Mineral Resource update is anticipated early in the March quarter.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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