Apollo Hill to grow this month

SATURN Metals will upgrade the resource for its Apollo Hill gold project in Western Australia before the end of this month.
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Drilling at Apollo Hill in Western Australia

Kristie Batten in Beaver Creek, Colorado

Saturn listed in early 2018 as a spin-off of Peel Mining.

Since then, it increased the resource for its flagship Apollo Hill deposit, but the real excitement around the project has been the recent discovery of high-grade hanging wall zones.

The project has a resource of 685,000 ounces at 1 gram per tonne gold, but recent results outside the resource have included 10m at 5.78 grams per tonne gold, including 5m at 11gpt gold from 46m, which indicate the potential for the delineation of a large parallel gold system.

The previous November 2018 resource update delivered a 36% increase in ounces and a 14% rise in grade.

"We think we'll see that trend continue," Saturn managing director Ian Bamborough told MNN on the sidelines of the Precious Metals Summit in Beaver Creek, Colorado.

"It's starting to come together beautifully."

While Patersons Securities analyst Xavier Braud has "little doubts about the Company being able to deliver over 1Moz in the next resource release", Bamborough is more conservative.

However, given the extent of the stacked lodes discovered to date, Apollo Hill should reach 1Moz - whether this month or in the next update.

Saturn is planning 13,000m of drilling between now and Christmas for another resource update in early to mid-2020.

It is fully funded after raising A$3.3 million last month at 35c per share.

Bamborough said it's been similar to Bellevue Gold in that every time Saturn steps out, it finds more gold.

Geologically, exploration manager Kathryn Cutler said the deposit is "not too dissimilar to Kundana".

There's also regional and depth potential.

"No intersection in the past three months has been deeper than 70m," Bamborough said.

Of Saturn's 1000sq.km landholding, 75% is unexplored or underexplored.

Much of the tenements have never even had an aircore hole or geochemical work.

"Geophysics indicate continuation to the east," Cutler said.

Argonaut Securities has named Saturn as one to watch among junior explorers and believes the Leonora region, where Apollo Hill sits, is ripe for consolidation.

Unsurprisingly, Bamborough said the company had "definite interest" from corporates.

"It's a simple story in one place," he said.

Saturn shares last traded at 46c, not far off the all-time high of 48c reached late last month.