West Australian gold explorer Artemis Resources (ASX: ARV) has provided its annual report to shareholders for the year ended 30 June 2020.
In his letter to shareholders, Artemis chair Mark Potter said:
Our focus remains on advancing the Carlow Castle and Paterson Central gold projects in the Pilbara, Western Australia.
The Carlow Castle Inferred Mineral Resource estimate was upgraded in late 2019 to 418oz Au, 48kt Cu and 7kt Co within 8Mt @ 0.51% Cu, 1.6 g/t Au and 0.08% Co. In early 2020 the Company launched Project One Million, an exploration programme to further increase the scale and size of the Carlow Castle resource. The first drill programme of 4,000 metres returned excellent grades and widths below the existing resource, extended mineralisation at depth and continued to show it remained open to the east and south. A follow-up drill programme commenced early in the new financial year designed to substantially increase and upgrade the resource with a view to processing at the Company’s 100% owned Radio Hill processing plant, approximately 35km from the project.
Artemis’ 100% owned Paterson project covers 605km2 and is located approximately 40km east of Newcrest Mining’s multi-million-ounce Telfer Gold-Copper mine and is contiguous to the recent Havieron gold and copper discovery by Greatland Gold Plc, subject to a farm-in by Newcrest. Following an extensive review by external consultants Resource Potentials, Artemis has identified 7 key target zones each to be drill tested. Five southern drill targets sit within the same geological and structural domain as the Havieron gold discovery, are within 4km of Havieron and are sited with the same favourable structural corridor, and two northern targets are geophysical and structural targets adjacent to a favourable N-S trending structural corridor extending north from Havieron.
With two significant projects Artemis’ Board resolved to dispose of non-core assets. The Company’s joint venture interests in the Purdy’s Reward and 47K Patch gold projects were sold to Novo Resources Inc. for a cash and shares consideration that realised approximately $6.6 million. Early in the new financial year Artemis sold its 80% interest in Mt Clement to its joint venture partner Northern Star Resources Limited for $319,000 in cash and a 1% royalty. The Company continues to assess opportunities to dispose of other non-core assets as appropriate.
The Company raised $8 million during the year, in placements of $5.9 million and $2.1 million and a share purchase plan of $2.7 million, well supported by shareholders. In July 2020 the Company raised a further $5.6m in a well oversubcribed share placement, with participation from both existing shareholders and new institutional investors. The Company is well funded to enable it to execute its project strategy in the year ahead.
My appointment on 24 February 2020 followed the resignation of Sheikh Maktoum Hasher Al Maktoum. We take this opportunity to thank Sheikh Maktoum for his contribution to the Company. Alastair Clayton a geologist with significant mining industry experience joined the Board in early 2020 as an Executive Director.
I take this opportunity to thank my fellow directors, the Artemis team, and our shareholders for their ongoing support as we look forward to an exciting and successful year ahead.