Constellation Resources expands WA portfolio with acquisition of Ularring copper-gold project
Constellation Resources (ASX: CR1) has secured a deal to acquire the Ularring copper gold project in Western Australia from Ramelius Resources (ASX: RMS) subsidiary Breaker Resources.
The project was inherited by Ramelius as part of its $130.7 million takeover of Breaker in March 2023 and is expected to be a complementary addition to Constellation’s WA portfolio.
Constellation said the acquisition represented an exciting opportunity to explore higher-grade copper-gold zones along a targeted shear corridor comprising 24 kilometres of strike where minimal exploration has been undertaken.
Exploration data
As part of the acquisition, Constellation has inherited exploration data including optical petrology reports and drill hole and geochemistry databases, along with geophysical information from electromagnetic, aeromagnetic and induced polarisation surveys.
Nearly all of the historical exploration was focused on the advanced Centre Forest prospect with little sustained work conducted across the greater portfolio.
Previous drilling confirmed a continuous, broad zone of copper-gold mineralisation over a strike length of 1.1km with a true thickness of up to 35m.
Best assays from surface oxides (saprolite) include 19m at 2.02 grams per tonne gold and 0.16% copper from 16m, 37m at 0.73g/t gold and 0.26% copper from 21m and 35m at 0.64g/t gold and 0.16% copper from 16m.
Unweathered and “fresh” drill hole results at Centre East include 17m at 1.1g/t gold and 0.21% copper from 84m and 20m at 0.55g/t gold and 0.13% copper from 80m.
Multiple deposits
Comprising two tenements across 187 sq km, Ularring sits within the Archaean Yilgarn Craton and borders the Southwest and Youanmi Terranes 100km north-east of Perth.
The region is known to host several major intrusion-related deposits such as the Boddington mine that has produced 11 million ounces of gold and 1Mt copper and Caravel Minerals’ (ASX: CVV) Caravel porphyry-hosted deposit containing 3Mt copper, 61,000t molybdenum, 895,000oz gold and 46Moz silver.
A separate style of deposit in the region is the mafic-hosted platinum group elements-nickel Julimar project owned by Chalice Mining (ASX: CHN).
Buy-back option
Consideration for the deal will take the form of $200,000 worth of Constellation shares at $0.15 each or the 10-day volume-weighted average price, whichever is higher.
Constellation will grant Breaker the option to buy back a 51% interest in Ularring on the announcement of a mineral resource estimate for 10 years following completion of the acquisition.
The exercise price payable in cash will be an amount equal to four times the in-ground exploration expenditure incurred at the tenements by Constellation or $100 per gold equivalent resource ounce (pro rata to 51%), whichever is greater at the time of the buy-back.
The deal is expected to settle before the end of November.