TechGen shares up 45% on debut as El Donna drilling starts
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
TechGen Metals Limited (ASX:TG1) couldn’t have wished for a better start when it commenced trading on the ASX on Tuesday with its shares closing at 29 cents, implying a premium of 45% to the IPO price of 20 cents per share.
The company finished with gross proceeds of approximately $6 million following the IPO, providing it with ample funding to conduct extensive exploration across its three main areas of operation, the Paterson Orogen, the Ashburton Basin and the Yilgarn Craton.
In the updated statement of commitments released when the company commenced trading, about $3.1 million has been allocated to exploration expenditure, and it is worth noting that the company hasn’t wasted any time in putting this to good use, having commenced its maiden reverse circulation (RC) drilling campaign at the company’s El Donna Gold Project, 50 kilometres north-east of Kalgoorlie.
The three areas being targeted by TechGen all have undergone very little modern exploration, but lie in broader regions where prominent discoveries have been made.
The following graphic provides a good snapshot of where its projects are located (El Donna to the south) and the likely mineralisation they will be targeting.
El Donna has historically delivered high-grade gold
TechGen has commenced its maiden reverse circulation (RC) drilling campaign at the company’s El Donna Gold Project, 50 kilometres north-east of Kalgoorlie.
The project is in an interesting location in that it is situated between the Mayday North Gold Mine (84,000 ounces at 1.5 g/t gold Indicated and Inferred) owned by Bardoc Gold Limited (ASX: BDC) and the Penny’s Find Gold Mine (56,000 ounces at 7.04g/t gold Indicated & Inferred) owned by Orminex Limited (ASX: ONX) and Horizon Minerals Limited (ASX: HRZ).
In terms of the area’s geological significance, the project is situated within the Gindalbie Domain of the Kurnalpi Terrane, part of the Eastern Goldfields Superterrane of the Archean Yilgarn Craton.
The El Donna project is considered prospective for gold mineralisation similar to that observed at both the Mayday North Gold Mine, 2 kilometres to the north, and the Penny's Find Gold Mine, 3.5 kilometres to the south with the latter featuring particularly high grade mineralisation.
TechGen recently collected several rock chip samples from the Star Prospect as shown below within the El Donna project and these have been sent for analysis.
Results to follow.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
