Tectonic Gold [AQSE:TTAU], the Aquis-listed, Australian gold exploration company has had some good news over the last month.
The company describes itself as a specialist Intrusion Related Gold System (IRGS) explorer and has three main projects. Specimen Hill/Mount Rainbow, east of Biloela in central Queensland with historic production of 8,000 ounces (oz) of gold at grades of 40 grammes per tonne (g/t) being its primary project. The company also has the Last Chance & Day Dawn in northern Kazakhstan and the Maxwellion project also in Queensland.
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IRGS were gold deposits originally discovered in granite deposits in Canada and Alaska in the 1990s. Created through the collision of tectonic plates, they were first uncovered in the Tintina Gold Province across Alaska and Canada’s Yukon territory, including Fort Knox and True North. They also occur in the Pacific Rim and Miricunga Belt, and have become a new class of gold deposit.
Usually explorers look at copper and epithermal deposits of gold, but IRGS are more commonly aligned with tungsten and tin geology. IRGS have specific depth and vein morphology signatures. It is in these locations that Tectonic Gold is conducting most of its exploration.
Tectonic Gold’s focus is on Australia
Tectonic holds the outright licences for seven tenements covering over 850km² in and adjacent to the New England Orogen in Queensland. Although the focus of Tectonic is Australia, the company also held an interest in a diamond and heavy minerals project in South Africa, the GBP150m Deep Blue Minerals project.
However, last month the explorer divested from Deep Blue. It sold its stakeholding to joint venture partner, Kazera Global LON:KZG in a cash plus shares deal, in order to focus all of its efforts on Queensland. It is now preparing to drill near Specimen Hill in partnership with Amerod Resources [ASX:WEC]. Tectonic will retain an interest in Deep Blue through its Kazera shareholding. Kazera hopes to get production underway this quarter.
In its last results statement – interims for the six months to end-December 2023 – Tectonic reported revenue of GBP84,104 with income of GBP46,660. Although this doesn’t break the bank, compared to a loss of GBP105,569 for the same period in 2022 it shows progress. The company’s shares opened the week (23rd September) at 0.15p, down 53% over one-year, and over the year-to-date down 40%. The company has a market capitalisation of GBP1.9m.
With its focus on the promising IRGS deposits in Queensland and its recent divestment from Deep Blue Minerals, Tectonic Gold is well-positioned to capitalise on the potential for significant gold discoveries in Australia. As the company continues its exploration efforts and aims to drill with its partners near Specimen Hill, investors will be watching closely to see if Tectonic can deliver on its potential and drive its share price upward.
