Verity Resources Set to Unveil Gold Potential with Start of Monument Drilling Campaign
A new report has highlighted the potential of multi-commodity explorer Verity Resources (ASX: VRL) as it prepares to commence drilling at its flagship Monument gold project in Western Australia.
The note from research house Corporate Connect has highlighted the upside at Monument as well as the company’s REE and lithium exploration opportunities in Brazil and copper and silver potential in Botswana.
In his review of Verity, Corporate Connect managing partner Paul Sanger said the company is well placed to unearthing hidden value via its multi-commodity exploration portfolio.
Near-Term Catalysts
Mr Sanger made note in the report of Verity’s multiple near-term catalysts and the company’s substantial upside potential.
“While the early-stage nature and funding reliance suit only risk-tolerant investors, the company’s multi-commodity strategy, discounted valuation, and news-rich outlook support our speculative buy rating,” he wrote.
Verity’s nearest and most significant catalyst is the imminent drilling campaign at Monument.
Historical Drilling Follow-Up
The company’s proposed 3,600-metre infill drilling program at Monument will feature twinning of historical drill holes, along with step-out holes aimed at expanding the current mineralisation footprint.
The multi-stage drilling campaign at the Koring deposit includes resource extension work across the combined 154,000-ounce Monument resource.
Mr Sanger believes Verity has the potential to create a valuation re-rating if it achieves sufficient resource growth at Monument – around one million ounces, by his estimate – to support a standalone development.
Metallurgical Program
Verity is also using the reverse circulation drilling program to collect samples for initial metallurgical test work to assess the properties of the gold mineralisation hosted within a sizeable banded iron formation target.
The company will also continue its exploration at the nearby Waihi resource to help build on the prospectivity and scale of Monument, where it has so far only drilled approximately 10% of an estimated potential 20km strike.
Mr Sanger further highlighted Verity’s accelerated exploration across its portfolio of rare earth, lithium and gallium projects in Brazil, where high-grade surface results and ongoing auger drilling have identified the potential for near-surface ionic clay REE systems.
In Botswana, the company is growing a nickel-copper-platinum group element resource at Maibele, while it has obtained high-grade copper-silver intercepts at the Airstrip and Dibete prospects.