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releasing a maiden resource of 11.8mt @ 1.6 g/t gold for 624,000oz
from limited, early-stage resource drilling at its Bombora deposit
within the Lake Roe project in Western Australia, the market
reaction to Breaker’s first resource was negative.
While Breaker stated it generally takes at least three years for a
deposit to progress from discovery hole to a potentially economic
resource, the market appeared to give little consideration to that
and the company found its share price falling from 51c/share to
24c in the weeks after the announcement.
The reaction to Breaker’s maiden Bombora resource in a Tier 1 Jon Hronsky
jurisdiction amplifies how fickle the investment community can Gold Road Resources Ltd executive director,
be. exploration and growth, Justin Osborne said
the significant growth of ETFs and index-hugging passive funds
The shallow open pit resource at Bombora, 100km east of
in the gold sector was essentially sidelining cash for greenfields
Kalgoorlie, has since grown to 23.2mt @ 1.3 g/t for 1 moz
explorers.
gold, with Breaker recently raising $8 million in a placement to
a prominent US fund to ramp up RC and diamond drilling to “All the money that was available for greenfields exploration has
increase the resource. really dried up. In the last few years you have seen brownfields
exploration increasing globally and greenfields decreasing
“The impression I get is that their preference is for Tier 1
globally,” Osborne said.
jurisdictions like Australia. First pass greenfields [exploration]
is relatively cheap and the reward from that particular phase, if “There is a lot more money going into brownfields exploration,
successful, is obviously very high. The trick is to be very decisive but not giving the returns. In 2007, 40% of global gold exploration
at that moment to keep on,” Sanders said. was greenfields by the end of 2016 it was down to 25% and all of
that money is going into brownfields exploration. And, it is having
Whether or not the success of Breaker and the likes of Bellevue
a variable return, there is a lot of brownfields exploration not
Gold Ltd to raise money and deliver on market expectations
delivering significant returns. If you made a decent discovery in
drags others in the junior space along and traditional resources
greenfields the return would be greater.”
investors back into the game remains to be seen.

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www.corescan.com.au

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