LinQ Hits 95m Gold Zone at Gidginbung!

Key Concepts

• Gigibang Pit: An existing, previously producing gold mine (operational in the 1980s & 90s) forming the central point of exploration.
• Epiothermal Alteration: A type of hydrothermal alteration associated with gold deposits, indicating potential mineralization.
• g m (gram-meters): A unit used to quantify the grade and thickness of mineralized intersections (grade x thickness).
• Brownfields Project: A mining project involving re-exploration and development of a previously mined area.
• Southern Zone: The area encompassing the Gigibang and Dam deposits, prioritized for initial development.
• Central Zone: Area north of the Gigibang pit, targeted for exploration alongside the Southern Zone.
• Infill Drilling: Drilling conducted to increase the density of data within a known mineralized area.
• Stepout Drilling: Drilling conducted to extend the known limits of a mineralized area.

Drilling Results and Resource Expansion at Gigibang

The recent drilling program at Gigibang has yielded highly encouraging results, confirming and expanding the known mineralization. Hole 13, located 160+ meters south of the Gigibang Pit, is particularly significant. It confirms findings from earlier holes (10 & 11 – 80m & 160m stepouts respectively) and demonstrates a thicker, shallower intersection – approximately 200 g m. This reinforces the understanding that the ore body dips south.

The speaker emphasizes the prospective nature of the resource south of the pit, as well as its openness to the north and underneath the pit itself. Supporting this, hole TP161, drilled years prior by another company approximately a kilometer south of the pit, exhibited alteration consistent with the Gigibang epiothermal system, indicating potential for further mineralization in that direction. The company plans to expand the drill program to investigate this southern extension.

Phase One Drilling Success & Deposit Characteristics

Phase one drilling, initiated in late June/early July of the previous year, focused on drilling under the Gigibang Pit, to the north, and to the south. Drilling also occurred at the Dam deposit, located 400-600m east of Gigibang. Results from the Dam deposit have been consistently strong, with intersections averaging around 100-170 g m at approximately 1 gram per ton, and at relatively shallow depths.

The overall success of Phase One has prompted a continuation and expansion of drilling efforts. The company ranks its deposits and targets across a 60 km long, 6 km wide belt, with the Southern Zone (Gigibang and Dam) currently prioritized. Several other targets within 6 km have shown promising historical results (8 g m hits), but haven’t been drilled in decades.

Strategic Focus on the Southern Zone & Brownfields Advantage

The company is prioritizing the Southern Zone due to the tighter drill spacing and shallower depths, making exploration more efficient. Gigibang is a “brownfields” gold project, having previously produced approximately 500,000 ounces of gold in the 1980s and 90s. However, operations ceased due to bankruptcy and a low gold price (approximately AUD $460/ounce), leaving a substantial sulfide ore body behind.

The strategy is to re-establish Gigibang as a producing gold project, creating a dual revenue stream alongside the Dam deposit. This approach is considered more cost-effective and efficient than immediately pursuing the numerous other targets along the 60 km belt. The speaker notes the need for “sophisticated capital allocation” to determine which targets to drill based on proximity, depth, and grade.

Future Drilling Program & Investor Expectations

The company is committed to a 30,000-meter drill program, fully funded by recent capital raising. This program is expected to take 18 months to two years to complete, utilizing up to three drill rigs simultaneously. Two rigs will focus on the Southern Zone (Gigibang and Dam), while the third will explore the Central Zone.

Investors can anticipate a consistent flow of news as drilling progresses over the coming months. The speaker stated, “investors should be expecting to get lots of news flow because we'll be drilling consistently over the next few months.”

Notable Quote

“So we feel that if we get Gigibang as a gold project primarily up and running, we will then have two streams of metal and we could get that up and running a lot more cheaply and efficiently.” – Regarding the strategic importance of re-establishing Gigibang production.

Synthesis/Conclusion

The drilling results at Gigibang and the Dam deposit are highly encouraging, demonstrating significant potential for resource expansion. The company’s strategic focus on the Southern Zone, leveraging the advantages of a brownfields project, provides a clear pathway to near-term production and a dual revenue stream. The planned 30,000-meter drill program, coupled with consistent news flow, positions the company for continued exploration success and value creation.