Having begun 2020 with just the Elevado gold-silver project in Chile, Emu NL (ASX: EMU) has within nine months transformed itself into a Western Australian-focused company bristling with projects in some of the state’s hotly sought-after locations.
The acquisitions followed a decision that, in light of COVID-19 restrictions, Emu would refocus its attention on home ground in WA.
Emu plans to finance its refocus to WA with placement of about $1 million. This will involve issuing 33.33 million shares at $0.03 each.
The company shed Elevado mid-year and now plans to become an “aspiring” gold producer along with acquisitions of prospective precious and base metals targets.
Emu’s acquisitions include the Gnows Nest gold project, a near-term production opportunity covering the historic high-grade Gnows News gold mine near Yalgoo.
Then there is the Sunfire project at which have been identified multiple trends hosting mafic-ultramafic intrusives prospective for nickel-copper-platinum group element (PGE) mineralisation.
The project is located near Bridgetown, 270km south of Perth.
Located near Lake Grace is Emu’s new Graceland project with untested anomalies prospective for nickel-copper-PGE.
The Viper project, located near Jerramungup 450km south of Perth, has an unexplored trend hosting historic copper workings.
Decision made after COVID restrictions hit
Emu chairman Peter Thomas said the projects were acquired on favourable terms in the face of bullish sentiment for gold, nickel and PGE.
“Following our exit from Chile and the subsequent travel restrictions imposed by the COVID-19 pandemic, the board made the strategic decision to focus on WA where it is expected our activities can continue largely unaffected by the pandemic.”
“We are now well-positioned to hit the ground running in a cost-effective manner and expect to announce a series of milestones over the coming months,” Mr Thomas added.
Sunfire close to Julimar ‘lookalike’
Emu’s flagship project will be Sunrise, which covers three interpreted trends including a “significant” nickel-copper anomaly in proximity to the recently announced joint venture between Venture Minerals (ASX: VMS) and Chalice Gold Mines (ASX: CHN).
The joint venture is investigating a “Julimar lookalike”, a reference to Chalice’s headline making Julimar nickel-copper-PGE discovery early this year.
Sunrise is included within Emu’s Avenger portfolio, which also holds Graceland and Viper.
“Intermittent mining and exploration activity on all projects areas provides support for a targeted program of exploration to commence immediately,” the company says.
Gnows Nest advanced-stage gold project
Gold ground acquired 32km southeast of Yalgoo hosts the historic Gnows Nest gold mine which operated between 1923 and 1941 and produced about 27,925oz of gold at an average recovered grade of 22 grams per tonne.
Recent drilling by the vendors outlined a small, shallow indicated and inferred JORC resource of 113,000t at 3.78gt/ for a contained 13,777oz.
The deposit remains open at depth and along strike.
Emu said its focus at Gnows Nest will be to develop a simple, shallow open pit gold operation, with the option of using toll treatment.