Siren’s Deep Drilling Gamble at Sams Creek Could Reshape Gold Resource Outlook
Siren Gold has committed to a second deep diamond drillhole at its Sams Creek Project, targeting promising gold mineralisation below the current resource. This move could significantly expand the project’s Mineral Resource Estimate amid rising gold prices.
- Second deep drillhole SCDDH109 underway targeting A2 Antiform at Sams Creek
- First deep hole SCDDH108 intersected 23m of Sams Creek Dyke with arsenopyrite veinlets
- Current Mineral Resource Estimate stands at 824koz @ 2.8g/t Au at 1.5g/t cut-off
- Equity-for-drilling deal arranged with Alton Drilling Ltd capped at NZD 40,000
- Plans include infill drilling to upgrade resource classification in coming months
Siren Gold Deepens Commitment at Sams Creek
Siren Gold Limited (ASX: SNG) has announced a strategic escalation of its exploration program at the Sams Creek Project in New Zealand with the commitment to a second deep diamond drillhole, SCDDH109. This follows the recent completion of SCDDH108, which intersected a significant 23-metre thick section of the Sams Creek Dyke (SCD) containing fine arsenopyrite veinlets, an encouraging sign of gold mineralisation.
The Sams Creek Project currently holds a Mineral Resource Estimate (MRE) of 824,000 ounces of gold at 2.8 grams per tonne (g/t) using a 1.5g/t cut-off. The new drilling targets the A2 Antiform, a structural fold feature interpreted to host additional mineralisation beneath the known resource, potentially unlocking a substantial expansion of the resource base.
Encouraging Early Results and Geological Insights
The initial deep hole, SCDDH108, intersected the SCD between 487 and 510 metres depth, approximately 150 metres below previous mineralised intersections. The presence of arsenopyrite veinlets similar to those in earlier holes strengthens the geological model of the A2 fold hinge as a prospective gold-bearing structure. Assay results from this hole are pending, but the geological context is promising.
SCDDH109 will be drilled as a daughter hole wedged from SCDDH108 at around 250 metres depth, targeting mineralisation 100 metres to the north and down dip. This approach reduces drilling length and cost, reflecting a focused and efficient exploration strategy.
Strategic Partnerships and Capital Management
In a notable development, Siren has arranged for part-payment of drilling services through an equity-for-services agreement with Alton Drilling Ltd. Alton will receive shares capped at NZD 40,000 at a deemed issue price of $0.055 per share, subject to formal agreement. This arrangement helps preserve cash while advancing critical exploration work.
The Sams Creek Project remains operated by Siren with an 81.9% interest, while OceanaGold NZ Limited holds a minority 18.1% stake. OceanaGold, a major New Zealand gold producer, is currently inactive in the joint venture, leaving Siren to drive exploration progress.
Looking Ahead: Resource Growth and Development Potential
Beyond the immediate drilling, Siren plans an infill drilling program aimed at converting a significant portion of the inferred resource into the higher-confidence indicated category. This upgrade is a critical step toward advancing the project’s development potential and supporting future feasibility studies.
The Sams Creek Dyke extends over 7 kilometres along strike and remains open at depth, with multiple fold hinges identified as prospective mineralised shoots. The company’s interpretation of the A1 and A2 Antiforms suggests a complex structural setting with significant upside potential.
With gold prices recently reaching new highs, Siren’s aggressive exploration approach at Sams Creek positions it well to capitalise on favourable market conditions. The pending assay results and ongoing drilling will be closely watched by investors seeking evidence of resource growth and project advancement.
Bottom Line?
Siren’s deep drilling push at Sams Creek could redefine its resource scale, setting the stage for a pivotal growth phase.
Questions in the middle?
- What will the assay results from SCDDH108 reveal about the depth and grade of mineralisation?
- How might the equity-for-drilling arrangement with Alton Drilling impact shareholder dilution?
- What are the timelines and expected outcomes for the planned infill drilling program?