Meteoric Resources to kick-off drilling at Juruena after acquisition formalised

Meteoric Resources (ASX: MEI) has officially completed the acquisition of the Juruena and Novo Astro gold assets in Brazil from Crusader Resources (ASX: CAS), paving the way for the company to get on the ground and begin its planned drilling and other exploration activities.

The projects are in central Brazil’s Mato Grosso state and cover 770 square kilometres over the Alta Floresta Belt, which hosts miners such as Anglo American and Vale.

“The formal completion of the acquisition of Juruena and Novo Astro market the commencement of the next exciting stage of development for Meteoric as we move to commence exploration,” Meteoric managing director Dr Andrew Tunks said.

Mr Tunks said he would be travelling to site immediately to join the company’s operation’s manager Peter Sheehan and the Brazilian team that is already on the ground.

He said the team would be finalising drilling plans for Juruena’s primary deposits Dona Maria and Querosene, which have a combined resource of 436,000t at 14.7g/t gold for 205,000oz.

“This is truly an exciting time for the company and its shareholders as we move into gold exploration in what we believe is one of the most prospective regions in the world, the Alta Floresta Belt in Brazil, which is home to majors including Anglo American and Vale,” Mr Tunks said.

Juruena and Novo Astro

In addition to the high-grade Dona Maria and Querosene deposits, Juruena hosts the large-tonnage, lower-grade Crentes deposit which hosts 846,000t at 2g/t gold for 55,000oz gold.

Previous drilling at Dona Maria returned 10m at 101.1g/t gold, including 2.4m at 389g/t gold.

Drilling at Querosene generated a 3.6m intersection grading 554.3g/t gold, including 1m at 1,992g/t gold.

The other less explored project is Novo Astro, which hosts 15sq km of historic mine workings that have never been drilled.

Previous rock chip sampling at Novo Astro returned up to 264g/t gold, with 13 samples assaying in excess of 10g/t gold.

Initial work at Novo Astro will involve ground-based geophysical surveys.

Deal terms

Under the deal, Meteoric will pay Crusader a total consideration of $3 million, with $1 million in cash and 50 million shares to be paid once the acquisition has been formalised.

The remaining cash and shares will be handed over upon reaching various milestones.

News the acquisition had been completed sent Meteoric’s share price up 5% to $0.02 in early afternoon trade.