St Barbara strikes gold at Simberi – what it means for investors

St Barbara Limited (ASX: SBM) has announced a pivotal oxide gold discovery at its Simberi operations, nestled in Papua New Guinea’s New Ireland Province. This newly identified deposit lies strategically between the Pigibo North and Southwest Sorowar pits, a region previously unexplored for significant surface mineralization.

The discovery is part of the company’s ongoing exploration and sterilization campaign for fiscal year 2025 (FY25). Initial results indicate exceptional grades from surface trenching and shallow diamond drilling, reinforcing Simberi’s potential to deliver cost-effective, high-grade oxide gold.

St Barbara’s Managing Director and CEO, Andrew Strelein, highlighted the significance of the find, stating that “this discovery is a real boost for the current Simberi oxide operations.” Further evaluation is already underway, with the company accelerating grade control drilling in January 2025 to assess the deposit’s full extent.

Why Is This Discovery Significant for Simberi?

The Simberi oxide discovery is an important addition to the island’s gold portfolio. The newly identified zone spans approximately 250 meters in length and 80 meters in width, with promising assay results from both trenching and shallow drilling. Key intercepts include:

• 40 meters at 2.0 g/t Au (gold) from trench SIMTR1055.
• 25 meters at 2.1 g/t Au from trench SIMTR1059.
• 28 meters at 1.0 g/t Au from surface in drill hole SDH585.

The discovery presents not only economic potential but also an opportunity to optimize Simberi’s existing oxide operations. Historically, the island has been a hub for low-sulfidation epithermal gold deposits, with oxide mineralization often linked to sulfides and iron oxides in volcanic and brecciated host rocks.

Experts suggest that this new deposit could extend Simberi’s mine life, as the grade and proximity of the oxide material offer significant mining and processing advantages.

How Does the Discovery Fit into St Barbara’s Broader Strategy?

The oxide discovery aligns seamlessly with St Barbara’s FY25 objectives, which focus on resource definition, exploration, and sterilization drilling. As part of the campaign, 62 diamond drill holes spanning 9,000 meters were planned to investigate eight target zones across the island, including the Pigibo North and Sorowar-Pigiput areas.

The program is ahead of schedule, with 44 holes completed to date, totaling 7,777 meters of drilling. Alongside oxide evaluations, the company is simultaneously advancing sulfide resource definition in other parts of Simberi, enhancing its overall reserve portfolio.

The campaign also includes innovative approaches to overcome Simberi’s challenging terrain, such as using mechanized trenching and advanced digital core orientation tools during drilling.

What Are the Broader Implications for St Barbara and the Gold Sector?

The Simberi oxide discovery has implications that extend beyond operational gains. For St Barbara, this find reinforces its reputation as a leader in epithermal gold exploration in the Asia-Pacific region. The discovery demonstrates the company’s ability to uncover deposits in geologically complex areas through advanced techniques and sustained investment.

For the gold industry, this find underscores the potential of low-sulfidation deposits in underexplored regions like Papua New Guinea. With global gold demand remaining strong, especially from central banks and the technology sector, new discoveries like this are critical for sustaining supply.

Furthermore, St Barbara’s rapid response to this discovery—fast-tracking grade control drilling and preparing for potential mining in Q3 FY25—sets a precedent for agile resource development.

What’s Next for the Simberi Campaign?

St Barbara has planned a robust follow-up to this discovery, with grade control drilling designed to delineate the oxide zone’s boundaries and assess its full economic potential. Additional assay results from recent trenching and diamond drilling are expected in Q3 FY25, providing further insights into the deposit’s grade and extent.

This discovery also supports the broader objective of resource optimization at Simberi, which includes the identification of suitable waste rock dump storage areas through sterilization drilling. The company remains committed to integrating environmental and logistical considerations into its exploration strategy.