Bryah Resources Ltd. has banked A$5.0 million from its recent IPO and is all set to light up the boards of the ASX on Oct. 17.
Managing Director Neil Marston told S&P Global Market Intelligence Oct. 16 that he expects Bryah to open strongly on its first day on the Australian bourse.
"Our top 20 [shareholders] hold 70% of the company's stock. So it's very tightly held," he said.
"We've had major support from John Hutton's investment fund. John Hutton is a former director of Sandfire Resources NL, which operates the high-grade DeGrussa copper-gold mine nearby. So John's experience in the area is well known and a lot of people will see his support as being a vote of confidence."
Another potential catalyst for a strong first-day performance could be the recent discovery of gold nuggets by metal-detecting prospectors on Bryah's landholding in Western Australia's Bryah Basin.
The share prices of many ASX-listed gold explorers have gone gangbusters in recent months on news of nuggety gold finds in the state's Pilbara region, which is further north of the Bryah Basin.
Marston told S&P the age of the rocks in the Bryah Basin are similar to those in the Pilbara.
"Obviously there's been a lot of gold discovered in the Bryah Basin historically and a lot of the exploration has been very much shallow work testing for open pit orebodies, which were mined in the area," he said.
"So the excitement around the Pilbara can only be good for us because the area has had a history of gold discoveries, and in particular around the Horseshoe Range area there's been a lot of nuggety gold found in that area."
According to Marston, the largest nugget found on Bryah's landholding is about 12.6 grams of gold, which is roughly the size of a A$2 coin, and was discovered close to a major geological structure within 5 kilometers of the historic Horseshoe Lights copper-gold mine.
"It's an area which hasn't been heavily explored at all and the fact that it's close to this major structure puts it in the right geological setting for us to go and have a good look at it," Marston said.
Bryah is in the process of seeking the permits required to drill test the targets identified from recent airborne magnetics, which shows similar geology to the Horseshoe Lights and DeGrussa mines below cover.
A recent high-grade discovery made by Auris Minerals Ltd. on its Wodger prospect prompted Bryah to make its Bryah Basin project a higher priority.
First assays from Auris' reverse circulation drilling program at the prospect returned hits of up to 3.41% copper, 4.75 g/t of gold and 9.21 g/t of silver.
Bryah plans to complete initial drilling at the Gabanintha project to define a resource, followed by drilling at the Bryah Basin project.
Former parent Australian Vanadium Ltd. said Oct. 16 that it has completed the sale of the precious and base metal rights in the Gabanintha project to Bryah and has retained a 13.4% stake in the company.