Strickland Metals Transforms Rogozna Project with 5.30Moz Gold Equivalent Resource at Shanac
Strickland Metals (ASX: STK) has announced a significant upgrade to its flagship Rogozna Gold and Base Metals Project in Serbia, with the cornerstone Shanac gold resource Strickland Metals deposit's resource increasing to 5.30 million ounces of gold equivalent (AuEq), elevating the total project resource to 7.40Moz AuEq.
Shanac Resource Expansion Delivers Exceptional Value
The updated Mineral Resource Estimate (MRE) for Shanac represents a remarkable achievement for Strickland, delivering a 15% increase in contained metal on a gold equivalent basis since the previous estimate. Most impressively, the resource upgrade adds 670,000 ounces of AuEq at an exceptional cost of just A$3 per ounce, demonstrating the company's ability to efficiently expand its resource base.
The revised Shanac deposit now stands at 150Mt @ 1.1g/t AuEq, including a higher-grade component of 32Mt @ 1.8g/t AuEq for 1.85Moz. This higher-grade zone will likely be the focus of future mining studies, potentially providing an attractive early production scenario.
Strickland's Managing Director, Paul L'Herpiniere, noted that the 2024 drilling programme successfully improved understanding of geological controls and distribution of higher-grade mineralisation within the bulk-tonnage deposit. The central dyke has been identified as a key geological control, with high-grade mineralisation occurring on either side.
Exceptional Resource Density Creates Mining Optionality
One of Shanac's most compelling attributes is the exceptional concentration of gold equivalent ounces per vertical metre. The core of the deposit contains approximately 15,000 AuEq ounces per vertical metre over a vertical extent of around 300 metres.
This extraordinary resource density creates multiple potential development scenarios, including the possibility of near-horizontal access into the deposit from the adjoining ridge flank immediately to the east, which could significantly reduce development costs.
Understanding Gold Equivalent in Polymetallic Deposits
For investors new to polymetallic resources, a gold equivalent (AuEq) calculation converts the economic value of multiple metals into a single comparable gold grade. At Shanac gold resource Strickland Metals, while gold is the primary metal (contributing 59% of the gold equivalent value), the deposit also contains significant copper (16%), zinc (13%), lead (6%), and silver (6%).
The AuEq calculation uses metal prices of gold (US$2,250/oz), copper (US$10,000/t), silver (US$25/oz), lead (US$2,200/t), and zinc (US$3,000/t), with assumed metallurgical recoveries of 80% for all metals based on preliminary metallurgical testing.
What is Gold Equivalent (AuEq)?
Gold equivalent is a standardised method used in the mining industry to express the combined value of multiple metals in terms of gold. This approach is particularly useful for polymetallic deposits like Shanac, where several valuable metals are present in significant quantities.
For Shanac, the formula used is:
AuEq (g/t) = Au (g/t) + 1.38 x Cu(%) + 0.011 x Ag (g/t) + 0.304 x Pb(%) + 0.413 x Zn(%)
This calculation allows investors to understand the total economic potential of the deposit through a single, easily comparable metric. The formula takes into account the relative prices of each metal and their expected recovery rates during processing.
Metal Contribution at Shanac
At Shanac, the contribution of each metal to the overall gold equivalent value is:
- Gold: 59% (primary value driver)
- Copper: 16%
- Zinc: 13%
- Lead: 6%
- Silver: 6%
This distribution highlights that while gold is the dominant metal, the copper and zinc components add significant value to the overall project economics.
Ambitious Growth Strategy Underway
Strickland is wasting no time in pursuing further growth at Rogozna. The company has already commenced a new 50,000-metre drilling campaign aimed at resource expansion and new discoveries across the project area. This programme will continue throughout 2025, with a particular focus on:
1. Further defining higher-grade zones within Shanac
2. Testing the high-grade gold skarn near the top of the deposit
3. Exploring a 200-metre section with limited drill testing on the western side of the central dyke
4. Following up on high-grade intercepts north of the current resource boundary, including historical drill hits of 8.0m @ 7.4g/t Au and 9.0m @ 3.0g/t Au
The next Rogozna resource update is scheduled for late 2025 and will include a maiden MRE for the high-grade, gold-dominant Gradina deposit alongside further updates to Shanac and Medenovac.
Why Investors Should Track Strickland Metals
Strickland presents a compelling investment case based on several key factors:
1. Rapid Resource Growth: Since acquiring Rogozna in July 2024, Strickland has added approximately 2 million AuEq ounces to the project resource at extremely low discovery costs.
2. Strong Financial Position: With $33.8 million in cash and Northern Star shares as of December 2024, the company is fully funded to execute its ambitious exploration strategy.
3. Multiple Growth Catalysts: The company has an aggressive drilling programme underway with results expected throughout 2025, providing numerous potential revaluation opportunities.
4. Development Optionality: The high-grade components of the resource (1.85Moz @ 1.8g/t AuEq) provide potential for selective mining approaches that could enhance project economics.
5. Exploration Upside: Beyond resource expansion at known deposits, the Rogozna project area contains numerous untested targets with the potential for additional discoveries.
Rogozna Project: A Significant European Gold-Base Metals Asset
The Rogozna Project is located in Serbia, a mining-friendly jurisdiction with a long history of mineral extraction. The project now hosts a combined resource of 7.40Moz AuEq across three deposits:
1. Shanac: 150Mt @ 1.1g/t AuEq for 5.30Moz AuEq (the subject of this update)
2. Medenovac: 21Mt @ 1.9g/t AuEq for 1.28Moz AuEq
3. Copper Canyon: 28Mt @ 0.9g/t AuEq for 0.81Moz AuEq
All resources are classified as Inferred under the JORC 2012 code, reflecting the early stage of project development but providing a solid foundation for future growth.
The geological setting at Rogozna features a large-scale magmatic hydrothermal system hosting skarn-based Au-Cu +/- Zn, Ag, and Pb mineralisation. Most of the mineralisation is associated with retrograde skarn development in spatial association with quartz latite dykes.
Technical Considerations for Deposit Development
The Shanac gold resource Strickland Metals deposit exhibits several technical characteristics that may prove advantageous for future development:
- Bulk Tonnage Style: The mineralisation ranges from 200 to 450 metres thick (at 0.5g/t AuEq cut-off)
- Higher-Grade Zones: Multiple ~5 to 50 metres thick higher-grade zones within the bulk tonnage envelope
- Near-Surface Components: The shallowest optimised mineralisation commences just 40 metres below surface
- Favourable Topography: The deposit follows the eastern flank of a north-west trending ridge, potentially allowing for efficient access via adits
The updated resource model shows significant improvement in both the continuity and proportion of higher-grade mineralisation zones, especially on the eastern side of the central domain that was the focus of the 2024 drilling.
As Strickland continues to expand and define its Serbian gold and base metals project, the combination of resource growth, strong finances, and clear development pathways positions the company as one of the more promising emerging resource stories on the ASX.
Ready to Invest in One of ASX's Most Promising Gold Stories?
Discover more about Strickland Metals' remarkable Rogozna Project with its 7.40Moz gold equivalent resource and ambitious growth strategy. With exceptional resource density, strong financial position, and multiple catalysts ahead, STK offers a compelling investment opportunity in the European gold and base metals sector. For comprehensive information about Strickland's projects and investment potential, visit their corporate website today.
