Scotty lithium project drives ‘transformational’ quarter for Monger Gold
Monger Gold is well-funded with $4.75 million in the bank to begin exploration at its Scotty lithium project.
Junior explorer Monger Gold (ASX: MMG) has reported a “transformational” June quarter driven by the acquisition of the Scotty’s lithium project in the US state of Nevada.
The project was acquired in May during a takeover of American Consolidated Lithium, and an auger soil sampling program began soon after to define targets for a maiden drilling campaign later this year.
Less than 3% of the area has been previously sampled, returning strong and coherent anomalism greater than 250 parts per million lithium.
Project expansion
During the quarter, Monger expanded the Scotty project by 37% to 78 square kilometres with an additional 264 claims covering 21sq km to the south.
The claims sit near the southern extension of the adjoining Bonnie Claire deposit, which is one of North America’s largest undeveloped lithium resources.
Monger believes there is a “high probability” the new acreage contains extensions of high-grade lithium mineralisation.
Providence drilling
Results from diamond drilling at the Providence prospect within the Mt Monger North project were received during the quarter, with assays showing the presence of high-grade copper and gold in the area.
Monger said the discovery of copper with gold could add value to Providence if enough of the mineralisation is found.
The copper-gold system in the prospect remains open along strike in a southwest direction and at depth in a northwest direction.
Maiden resource
Subsequent to the end of the quarter, Monger reported a maiden mineral resource estimate for Providence of 204,700 tonnes grading 2.5 grams per tonne for 16,400 ounces of gold.
It is believed to be at open pit extractable depths and sits within a prolific gold district south east of Kalgoorlie.
Cash and costs
Monger held $3.96 million cash at the end of the June quarter.
Costs to related parties including executive remuneration and non-executive director fees were $35,000, while administration and corporate costs came to $326,000.
Exploration expenses for the quarter totalled $293,000.