Resolution Minerals targets diversified growth with addition of Drake East, Spur South and Neardie projects
Resolution Minerals’ (ASX: RML) acquisition of three high-grade metals projects in New South Wales and Queensland from private company Devil Prospecting resulted in a busy quarter for the up-and-coming explorer.
The company announced in March that it would acquire the Drake East antimony-gold project in north-eastern NSW, the Spur South gold-copper project in central NSW and the Neardie antimony project 29 kilometres north-east of Gympie, for $70,000 and 25 million Resolution shares.
The company believes the acquisitions offer “exceptional value and strategic exposure” to antimony and gold.
Drake East occurrences
At Drake East, high-grade antimony, gold and silver occurrences and extensive placer gold deposits cover a large area with a strike length of over 15 kilometres.
Peak values from historic sampling include 5.72% antimony, 60.9 grams per tonne gold and 214g/t silver.
Resolution commissioned a topography study across the project area during the quarter that delivered findings “beyond the company’s expectations”, with a total of 791 mine workings including 742 pits, 33 shafts and 16 adits.
The majority of these workings correspond with 70 historical gold and antimony prospects previously recorded at Drake East.
High-grade history
Neardie hosts three antimony mines that were once significant producers of high-grade antimony ore.
The project features a 527-foot-deep shaft and six levels, with stibnite the primary mineral of interest and grades of up to 5% antimony during peak production.
Today, Neardie hosts very high-grade antimony mineralisation at maximum values of 19.5% from underground samples.
Resolution believes significant extensions of the Neardie mineralisation could be possible in parallel systems along strike and at depth.
Prolific location
Spur South is located within the prolific Macquarie Arc region of NSW.
The area is home to 25 known gold-copper porphyry systems and hosts six world-class mines, 17 significant porphyry deposits and two mines at the feasibility study stage.
The project is situated among major gold-copper deposits including Cadia Valley, owned by Newmont Corporation (ASX: NEM), Cowal (Evolution Mining, ASX: EVN), McPhillamy’s, Discovery Ridge and Bald Hill (Regis Resources, ASX: RRL), Boda (Alkane Resources, ASX: ALK) and the growing Spur project (Waratah Minerals, ASX: WTM).
Portfolio review
Resolution continued to review its exploration portfolio during the quarter and incurred modest expenditure to keep its existing tenements in good standing.
The company has committed to the ongoing review of other projects within its portfolio to assess their potential for divestment.
During the quarter, Resolution completed a $1.55 million capital raising to further develop its recent acquisitions and the company’s cash on hand at end March totalled $998,000.
Total expenditure of $86,000 for the period included $37,000 for tenement rentals and labour for technical consultants and $49,000 in fees to executive directors.