What are the key highlights of the Mineral Resource Estimate update for the Dalgaranga Gold Project?

In a significant development within the mining and resources sector, Spartan Resources Limited (ASX: SPR) has unveiled a substantial Mineral Resource Estimate ("MRE") update for its Dalgaranga Gold Project ("DGP") in Western Australia. This update includes remarkable findings from the Never Never Gold Deposit and the Gilbey's Complex, ushering in a new era of growth and potential for the company. In this detailed report, we explore the highlights of this update, the implications for shareholders, and the future prospects for Spartan Resources.

Key Highlights of the Mineral Resource Estimate Update

The Dalgaranga Gold Project MRE update has brought several noteworthy highlights to the fore:

Dalgaranga Gold Project MRE: The updated MRE stands at an impressive 21. 15 million tonnes (Mt) at an average grade of 2. 49 grams per tonne (g/t) of gold, equating to a substantial 1,692,600 ounces of gold. This includes two key components:

Never Never Gold Deposit: Comprising 5.

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16 Mt at a remarkable grade of 5. 74 g/t gold, totaling 952,900 ounces.

Gilbey's Complex: Encompassing 15. 99 Mt at an average grade of 1. 45 g/t gold, amounting to 739,800 ounces.

Resource Classification Breakdown: The MRE is further classified into Indicated and Inferred resources, providing insights into the confidence levels of these estimates:

For the Dalgaranga Gold Project MRE:

12. 96 Mt at 2. 67 g/t gold, accounting for 1,119,000 ounces (66%) classified as Indicated.
7. 93 Mt at 2. 25 g/t gold, representing 573,610 ounces (34%) classified as Inferred.
For the Never Never Gold Deposit MRE:

3. 67 Mt at a high grade of 5. 93 g/t gold, comprising 700,700 ounces (74%) classified as Indicated.

1. 49 Mt at 5. 28 g/t gold, amounting to 252,100 ounces (26%) classified as Inferred.

In-fill Drilling Success: In-fill drilling from the surface has significantly converted approximately 74% of the updated Never Never Gold Deposit MRE ounces to the higher confidence Indicated Resource classification, setting the stage for future conversion to Ore Reserves.

Underground Potential: The underground component of the updated Never Never MRE demonstrates an impressive average of more than 1,690 ounces per vertical meter ("ozpvm"). Additionally, the apparent strike length of high-grade mineralization at depth has expanded to over 200 meters north-south and is showing further growth potential.

Gilbey's Complex Update: Targeted in-fill drilling and an updated Resource estimation for the higher grade Four Pillars and West Winds gold prospects have led to an updated Gilbey's Complex MRE, featuring 11. 32 Mt at 1. 34 g/t gold for 486,500 ounces. Importantly, 86% of this resource, equivalent to 410,800 ounces, is classified as Indicated and constrained within an A$2,800/oz pit.

Spartan Group Mineral Resources: Spartan has consolidated its position with the updated Mineral Resources for the Dalgaranga and Yalgoo ("Murchison") and Glenburgh and Egerton ("Gascoyne") Projects, which now collectively amount to 44. 16 Mt at 1. 77 g/t gold, representing 2,512,400 ounces. Notably, 69% of this resource, or 1. 7 million ounces, falls within the Indicated category.

Management's Perspective

Spartan Managing Director and Chief Executive Officer, Simon Lawson, expressed his enthusiasm for these remarkable findings. He highlighted the rapid growth of the Never Never Gold Deposit, which has evolved from a resource of 303,000 ounces at the start of 2023 to an astounding 952,900 ounces less than 12 months later, with 74% now classified as Indicated.

Lawson also emphasized the importance of the high-grade Four Pillars and West Winds gold prospects within the Gilbey's Complex MRE, which he believes will play a pivotal role in the company's future mine plan. Furthermore, he expressed confidence in Spartan's continued success in discovering high-grade ounces and its commitment to delivering substantial value to shareholders.

Spartan Resources Limited's Dalgaranga Gold Project MRE update is nothing short of extraordinary. The substantial increase in resource ounces, combined with higher grades and promising exploration prospects, paints a picture of significant growth potential for the company. As Spartan continues to explore and drill along-strike from Never Never, Four Pillars, and West Winds, investors can look forward to an exciting year ahead, with the promise of more high-grade discoveries and a dynamic mine plan on the horizon.

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