April 15, 2021
Adyton Resources Corp. (TSXV:ADY, Not Rated, David A. Talbot) announced the completion of its renewal process for the Gameta and Wapolu deposits at its Fergusson Island project, located within Papua New Guinea’s renowned “Rim of Fire”. These two shallow oxide gold deposits host 360k oz and 140k oz, respectively, and are adjacent to the well-known Misima and Woodlark gold projects. This is an obvious de-risking event. Adyton also mentioned that its Gameta drill program is ahead of schedule with 11 holes (~1,000m) completed. There is significant upside potential along strike and at depth with initial results due in the coming weeks. A historical PFS (2004) suggested production of 50,000 oz in concentrate. With this project representing near term cash flow, management’s goal is to enlarge the Gameta deposit. Moreover, investors should also be focused on the Feni gold-copper property, a porphyry exploration project which is the real prize asset that could help drive ADY’s share price. Feni is located along an island chain of several large porphyry deposits including Lihir (25M oz) located 150km away and Simberi (5M oz) 250km away. We believe the area remains underexplored as previous drilling likely wasn’t drilled deep enough, but it did return several >5 g/t Au intercepts with up to 1-2% Cu. Recent 3D reprocessing of historical IP geophysics at Feni supports management’s interpretation that it has potential to be a significant copper porphyry target. The Feni Island drill program is scheduled for no later than Q3/21, but additional news is expected to come out shortly. Read more
