Navarre Minerals Limited (ASX: NML)

VICTORIA’S GOLDEN COMEBACK
Navarre Minerals Limited (“Navarre” or “the Company”) is one of the pioneers of Victoria’s
gold renaissance having been an early mover to access quality exploration acreage when the
competition for prospective ground was less intense. Within its project portfolio, Navarre is
generating considerable exploration success, including discoveries at Irvine and more recently
at the Langi Logan gold prospects within the broader Stawell Corridor Gold Project (“SCGP”)
as well as at Tandarra, along the Whitelaw Fault Corridor north of Bendigo. Although early days,
these discoveries have returned excellent results and have good potential to be converted into
gold deposits with ongoing drilling. In addition, Navarre has identified a pipeline of prospects
that, with targeted drilling, have the potential to result in further quality discoveries.
Victorian gold is now in focus on the back of the exceptional performance of Kirkland Lake
Gold’s (ASX:KLA, TSX:KL), Fosterville Gold Mine (“FGM”, 7 Moz gold endowment) which is
on track to produce 550,000 – 600,000 ounces of gold in 2019. Recent drilling at Fosterville
has defined the Swan Zone, with Reserves of 588 kt at an exceptionally high 61.2 g/t Au for
1,156,000 oz, highlighting the opportunities that still exist in the Victorian goldfields.
Gold mineralisation in Victoria, which has historically produced some 80 Moz, is orogenic in
style, similar to that in Western Australia, with Navarre targeting mineralisation similar to that
at the Stawell Gold Mine (“SGM”, 4 Moz historical production) and Fosterville. These deposits
are characterised by relatively continuous gold grades, unlike the highly nuggety Bendigo and
Ballarat mineralisation that is commonly associated with Victorian gold deposits.
Gold in Victoria occurs along a number of distinct structural trends that extend under younger
cover to the north and south of the exposed gold-bearing basement rocks. Navarre’s strategy
has been to peg ground under areas of shallow cover along these trends, with most of these
areas having had no previous exploration. Tandarra is an example of one of the Company’s
discoveries made under cover, with this now part of a Joint Venture with Catalyst Minerals
(“Catalyst”, ASX: CYL, market capitalisation of A$193 million).
Results of first-pass shallow aircore drilling at the Glenlyle Project (“Glenlyle”), targeting
epithermal, VMS and porphyry mineralisation have been positive, intersecting elevated silver
and gold within broad alteration envelopes. Glenlyle is situated over an interpreted intrusive
centre hosted in the same broad Cambrian magmatic arc that hosts Stavely Minerals (ASX: SVY)
Thursday’s Gossan porphyry discovery.
Stavely’s recent discovery of high grade massive sulphide copper-gold lode style mineralisation
at Thursday’s Gossan (with an intersection of 32 m @ 5.88% Cu, 1.00 g/t Au and 58 g/t Au) has
shed new light on Glenlyle (which will be re-evaluated), with massive sulphides intersected in
the drilling that discovered the 150 m wide zone of silver-gold-base metals under shallow cover.
Navarre is set to commence an expansive drilling program in the Stawell Corridor, which
is expected to contribute towards Navarre’s first Mineral Resource. This will include
deeper diamond drilling at the Adventure and Resolution gold discoveries at Irvine and
expansion aircore drilling at the more recently discovery Langi Logan prospect.
KEY POINTS
Highly prospective holdings: The Company’s projects are located over areas with a long
history of gold production, and along strike or adjacent to historic and/or currently producing
mines.
Exploration success: Work to date has confirmed the prospectivity, with a several new
discoveries being made; there still remain a number of prospects that need to be tested, and
thus there is the chance for further discoveries.
Well served by infrastructure: All projects are in areas that are well served by infrastructure,
and with ready access to skilled personnel.
Experienced personnel: Company personnel have extensive and successful experience in
the resources industry, including in operational, technical and commercial roles; this includes
experience operating the 4 Moz Stawell Gold Mine in western Victoria. The Board, which is
comprises all the founding directors of the Company, has a major aggregate shareholding in
Navarre of approximately 10%, thus aligning their interests with those of other shareholders.
Strong and supportive register: The two top key shareholders, Crocodile Gold (an Australian
subsidiary of Kirkland Lake Gold, the operator of the FGM) and VBS Exchange (part of The
Victor Smorgon Group) have been supportive and have taken part in recent placements.
Steady news flow: Upcoming work, including drilling, will result in a steady news flow.
Leveraged to exploration success: With a market capitalisation of ~A$38 million, Navarre
is well leveraged to further exploration success and proximity to other discoveries; recent
Victorian examples have been Catalyst with their Four Eagles discovery near Tandarra, and
Stavely’s recent discovery - these have resulted in current share prices of multiples of those
pre-discovery, with Catalyst trading at a market capitalisation of A$193 million and Stavely at
A$158 million - Navarre has exposure to both the geological terranes that host these.