Orbit Resources has wrapped up its latest drilling campaign at the Lewis Ponds gold-silver-zinc project in New South Wales, intersecting a 28.1-metre zone of visual sulphide mineralisation in the final hole of the program. The company said the hole, drilled into its Spicer's Lode, hit the zone from 199.5 metres downhole and contained sections estimated visually at up to 34 per cent semi-massive sulphides.
The intersection marks the successful completion of a four-hole resource development program, with assays for all holes, including a 3.55-metre hit at an estimated 50 per cent massive sulphides, due shortly. Orbit Resources managing director Jeneta Owens said: "Assays are needed to confirm grades and widths, but the program has delivered what it was designed to do, which was to test the continuity of the lodes within the existing resource and provide fresh core for our next round of metallurgical testwork."
The drilling program was designed to lift confidence in the Lewis Ponds resource, which currently stands at 17.52 million tonnes grading 1.12 grams per tonne gold, 53.34 g/t silver, 2.06 per cent zinc and 1.1 per cent lead. A scoping study released in February outlined a base-case pre-tax net present value of $481 million and an internal rate of return of 24 per cent, with an upside case using spot commodity prices at the time delivering a pre-tax NPV of $1.088 billion and an IRR of 40 per cent.
Orbit also holds the Narraburra ionic-clay rare earths project, which remains on the backburner, and the Cousin Jack base metals discovery 350 metres to the southeast of the existing resource. Discovery drilling at Cousin Jack in June returned hits including 15 metres at 2.8 per cent zinc equivalent. The company says pending results will feed into an updated geological model.
Analysis
Why This Matters
- Lewis Ponds is a significant polymetallic deposit in a proven mining belt, and the scoping study economics suggest it could be a company-building asset if assay results confirm continuity.
- The project supplies metals essential for electrification (zinc, lead) and precious metals credits, tying into supply chain security narratives.
- Orbit is balancing this project with a rare earths project that is benefiting from higher prices, giving the company optionality.
Background
Lewis Ponds is a polymetallic gold-silver-zinc-lead project in the Lachlan Fold Belt of New South Wales. Orbit Resources, an ASX-listed company, released a scoping study in February that outlined strong project economics. The drilling program just completed aimed to upgrade resource confidence and supply material for metallurgical testing.
What to Watch
- The assay results from the four drill holes, which will confirm the visual grade estimates and massive sulphide intersections.
- The updated geological model and any follow-up drilling plan for the Cousin Jack discovery to the south.
- Orbit's decision on whether to advance the Narraburra rare earths project into a scoping study.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedOrbit completed its NSW drilling campaign with a thick sulphide intersection.The Age - Latest News: “Orbit Resources has capped off the latest drilling campaign at its Lewis Ponds gold-silver-zinc project in New South Wales with a bang, intersecting a thick 28.1-metre zone of visual sulphide mineralisation in the program’s final hole.”
- SupportedThe company is awaiting assays after a roughly 28-metre hit.The Age - Latest News: “Stage two drilling is now complete at Lewis Ponds, leaving Orbit awaiting a fresh batch of assays”
- SupportedThe February scoping study outlined an upside-case pre-tax NPV of $1.088 billion.The Age - Latest News: “an upside case using spot commodity prices at the time sent the potential project economics into the stratosphere, delivering a pre-tax net present value of a whopping $1.088 billion”
- SupportedManaging director Jeneta Owens said: “Assays are needed to confirm grades and widths, but the program has delivered what it was designed to do, which was to test the continuity of the lodes within the existing resource and provide fresh core for our next round of metallurgical testwork.”The Age - Latest News: “Orbit Resources managing director Jeneta Owens said: “Assays are needed to confirm grades and widths, but the program has delivered what it was designed to do, which was to test the continuity of the lodes within the existing resource and provide fresh core for our next round of metallurgical testwork.””
- SupportedThe final hole intersected a 28.1-metre zone of visual sulphide mineralisation from 199.5 metres downhole, with sections estimated visually at up to 34 per cent semi-massive sulphides.The Age - Latest News: “The company says the hole drilled into its Spicer’s Lode hit the zone from 199.5m downhole, with sections containing visual estimates of up to 34 per cent semi-massive sulphides.”
- SupportedThe intersection completed a four-hole resource development program, and assays for all holes were due shortly, including for a 3.55-metre hit estimated at 50 per cent massive sulphides.The Age - Latest News: “The intersection marks the successful completion of a four-hole resource development program, with assays for all holes, including a 3.55-metre hit at a whopping 50 per cent estimated massive sulphides, due shortly.”
- SupportedThe drilling program was designed to lift confidence in the Lewis Ponds resource.The Age - Latest News: “The drilling program was designed to lift confidence in Lewis Ponds’ existing mineral resource by upgrading sections to the higher indicated category, while also supplying fresh core for metallurgical testwork.”
- SupportedThe Lewis Ponds resource stands at 17.52 million tonnes grading 1.12 g/t gold, 53.34 g/t silver, 2.06 per cent zinc and 1.1 per cent lead.The Age - Latest News: “That resource already hosts a formidable polymetallic base, sitting at 17.52 million tonnes grading 1.12 grams per tonne (g/t) gold, 53.34g/t silver, 2.06 per cent zinc and 1.1 per cent lead with copper credits.”
- SupportedThe February scoping study outlined a base-case pre-tax NPV of $481 million and an IRR of 24 per cent.The Age - Latest News: “a scoping study released in February has already put some impressive numbers around Lewis Ponds, outlining a base-case pre-tax net present value of $481 million and an internal rate of return of 24 per cent.”
- SupportedThe upside case delivered a pre-tax NPV of $1.088 billion and an IRR of 40 per cent.The Age - Latest News: “an upside case using spot commodity prices at the time sent the potential project economics into the stratosphere, delivering a pre-tax net present value of a whopping $1.088 billion and an internal rate of return of 40 per cent.”
- SupportedOrbit’s Narraburra ionic-clay rare earths project is on the backburner.The Age - Latest News: “Orbit’s Narraburra ionic-clay project offers another potentially valuable card up its sleeve, despite currently being on the backburner.”
- SupportedCousin Jack is 350 metres southeast of the existing resource, and June discovery drilling included 15 metres at 2.8 per cent zinc equivalent.The Age - Latest News: “the Cousin Jack base metals discovery, 350 metres southeast of the existing mineral resource. Discovery drilling in June delivered some encouraging hits, including 15m at 2.8 per cent zinc equivalent from 314m”