Trigg Minerals wraps up Drummond project and acquires new gold project

Trigg Minerals (ASX: TMG) is preparing to commence drilling as soon as possible after finalising the acquisition of the Drummond gold and base metal project in Queensland.

The purchase of the Drummond project, initially announced in mid-September, has been completed through the acquisition of Rush Resources, a subsidiary of Andromeda Metals (ASX: ADN).

The company’s shareholders approved the deal at an extraordinary general meeting in late October, with more than 97% of votes in favour.

As part of the takeover arrangements, non-executive director Timothy Morrison is replacing Mike Ralston as non-executive chair.

Mr Ralston and Stephen Ross remain as non-executive directors on Trigg’s board.

New gold deal

Meanwhile, Trigg has today entered into a binding term sheet to acquire a majority interest in four new licences covering a 431 square kilometre exploration area in northern Queensland.

The permits being acquired from Boadicea Resources (ASX: BOA) align with the company’s other gold exploration opportunities in the Drummond Basin and Charters Towers region.

Under the term sheet, Trigg proposes to acquire 90% of the Clarke Reward and Mt Carmel licences in the Drummond Basin region, as well as the West Ravenswood licence in the Charters Towers area.

Historical data review

Mr Morrison said Trigg’s focus is now on reviewing historical data from the project to identify targets for exploration and drilling in the first quarter of 2024.

“We’re pleased to have completed this acquisition of the Drummond project, which we believe is highly prospective for gold and base metals,” he said.

“We have now commenced early-stage exploration activities, including a review of historical data, to hit the ground running on this project. Adding this project to our portfolio allows us to diversify our interests and de-risk our asset base, providing exposure to gold and metals that are of importance to the global energy transition.”

“In the meantime, we continue to progress a review of our projects in Western Australia, including our Lake Throssell Project, to find new opportunities to deliver value from these.”

Quality mining neighbourhood

The Drummond project is located close to several major gold discoveries and producers, with significant gold resources located within 70km of the project area, including Pajingo (~3.6 million ounces, producing up to 230,000oz of gold per year), Yandan (~0.9Moz), Wirralie (~0.3 Moz) and Mount Coolon (~0.6 Moz).

Covering 540 sq km within five granted exploration permits in the Drummond basin, the Drummond project is located 150km south of Townsville.

Trigg will be targeting epithermal and intrusion-related gold (-silver) deposits within existing advanced prospects along with an investigation of further greenfield exploration potential in its upcoming on-the-ground exploration work at Drummond.

Exploration investment

Approximately $6m has previously been invested at Drummond, creating an extensive exploration database.

Historic exploration within the Drummond tenements has defined gold mineralisation at Limey, Breccia Hill, Quartz Ridge and Bunyip, with historic mining of silver-gold-base metals undertaken at Charlies.

The company has contracted Brisbane-based Global Ore Discovery and its technical team to review historical data in preparation for a field campaign, with a focus on identifying immediate exploration and walk-up targets for the upcoming drilling campaign.

The initial plan is for the drilling of several deep holes testing for low sulphidation epithermal gold mineralisation.

In announcing the deal to the ASX in mid-September, Mr Ralston said the substantial cash spent historically at the Drummond project by two experienced gold companies provides considerable upfront value for Trigg, allowing it to move faster and with more certainty towards the initial drilling program.

“Any exploration success near to several world-class gold projects in the region will open further opportunities, including toll treatment. We also like the fact that historical work has also identified base metal potential on these tenements.”

Aggressive acquisition mode

Trigg also revealed today it is proposing to acquire a 90% stake in the newly-granted Bosworth tenement from Boadicea.

The Bosworth licence was recently granted by the Queensland government. Covering 29 sq km, it is contiguous to the West Ravenswood license.

“These acquisitions will add to our recently completed acquisition of Drummond project, allowing Trigg to expand its Drummond portfolio and position the company as an important explorer in the region,” Mr Morrison added.

“Each of these licence areas has shown potential for epithermal and intrusion-related gold and potentially silver deposits. We look forward to advancing our new exploration strategy on these tenements to drive value for our shareholders while assessing the best way to move forward with our WA assets.”