ASX-listed Auroch Minerals has executed a binding term sheet with neighbour, ASX-listed Jindalee Resources, to acquire up to 70 per cent of four exploration licenses, located adjacent to its Leinster Nickel Project in WA’s nickel-sulphide-rich Norseman-Wiluna greenstone belt.
The company said the tenement package is almost surrounded by either working or historical nickel mines and has one lease sharing a border with its 100 per cent-owned ground containing the Horn prospect.
The binding agreement with Jindalee covers 217 square kilometres of dirt across four tenements which Auroch considers are highly prospective for both gold and nickel-copper sulphide targets. The company said it has already identified several drill-ready targets on the ground.
Auroch said the new lease package includes the 1.3km long, drill-ready Firefly prospect, where historical RAB drill intercepts of elevated nickel and copper were never followed up by RC or diamond drilling. Firefly lies just a few kilometres south of its 100 per cent-owned Horn nickel prospect.
Auroch said the best intercepts from the historic RAB drilling around Firefly include one hole that returned 23m at 0.53 per cent nickel from 13m, including 1m at 0.86 per cent nickel from 22m. A second RAB hole hit 5m at 0.74 per cent nickel from 44m and another showed 4m at 0.53 per cent nickel from just 16m downhole.
Auroch Managing Director, Aidan Platel said: “We are very pleased to enter into this farm-in agreement with Jindalee and increase our presence in a highly- endowed nickel sulphide belt. The four tenements have great nickel sulphide potential, and the walk-up drill targets add to our existing pipeline of highly-prospective drill-ready targets at our Saints and Leinster Nickel Projects.”
“The tenure is in the Eastern Goldfields region and close to some large operating gold mines, so it also has great potential for significant gold mineralisation which the Company will assess as part of our exploration strategy.”
Under the terms of the deal, Auroch said it had agreed to pay Jindalee $50,000 cash immediately, with a further $50,000 cash due upon completion of all earn-in commitments. The Company must spend $500,000 on exploration across the four tenements over a three-year period, including $100,000 in the first 12 months to earn its 70 per cent ownership of the four licenses. It also said Jindalee would be free-carried until a decision to mine.
Interestingly, Auroch management said the new tenement package is also in close proximity to both historic and operating gold mines, such as Saracen Mineral Holding’s Thunderbox and Bannockburn gold mines and Gold Fields Limited’s Agnew and Lawlers gold mines.
With a diamond drilling campaign already underway at Auroch’s Saints nickel-sulphide discovery and an active RC drill test program going on, expect plenty of news flow out of the ASX-listed junior in the coming months.
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