Business
WIN TO ACQUIRE HIGH-GRADE GOLD PROJECT
WIN TO ACQUIRE HIGH-GRADE GOLD
About this update from Win Metals Ltd
WIN Metals Ltd (ASX:WIN) ('WIN' or 'the Company') is pleased to advise that it has signed a tenement sale agreement for the acquisition of the portfolio of tenements previously known as the Palm Springs Gold Project from Meteoric Resources NL ('Meteoric') (ASX:MEI) located 30km south-east of Halls Creek in the Kimberley region of Western Australia ('Acquisition'). The project comprises an already established high-grade mineral resource of some 357,000oz (5.6Mt @ 2.0g/t) 1 of gold based around two resource areas, a production history of 52,000oz produced between 1995 and 19972 , a host of advanced high order drill targets from over 60 known gold occurrences on the 100 sq.km tenement package. WIN will now refer to the acquired tenements as the 'Butchers Creek Gold Project' ('Butchers Creek' or 'Project') reflective of its primary gold endowment, the historic Butchers Creek Gold mine. WIN will acquire the tenements currently held by Meteoric's wholly owned subsidiaries, Horrocks Enterprises Pty Ltd (Horrocks) and Kimberly Resources Pty Ltd (Kimberly) Consideration for the transaction comprises the following: I. $50,000 + GST 'Exclusivity Fee'; II. $950,000 +GST (being $1,000,000 minus the Exclusivity Fee) and III. WIN Shares to the value of $1,750,000 (calculated based on a deemed issue price per WIN Share equal to the issue price applicable to the WIN capital raising) ('Consideration Shares'). The Consideration Shares will be subject to a 12-month voluntary escrow agreement. The cash consideration referred to above may be (or in the case of the Exclusivity Fee, has been) funded from the Company's existing cash reserves WIN Metals Managing Director and CEO, Mr Steve Norregaard , commented: 'Firstly, we welcome Meteoric Resources to the WIN share register as our new major shareholder. 'This pivotal acquisition for WIN heralds the end of a challenging period for the company searching for a new strategic direction to unlock value for our shareholders and attract new investor interest. We believe we have made a great choice in securing a quality gold asset with ample growth upside and a proven production history in what we regard as a very much forgotten gold province. 'Our existing nickel and lithium resource base remains firmly part of the portfolio to complement this new commodity and new project area Meteoric Resources Executive Chairman, Dr. Andrew Tunks , commented: 'We are delighted with the sale of the Butchers Creek Gold Project to WIN Metals. This prospective gold asset deserves dedicated attention in the current gold market, and the Board of Meteoric is pleased that WIN is able to provide this focus given our intense efforts on the Caldeira Rare Earth Element Project in Brazil which is rapidly progressing towards development. 'As well as realising value for our shareholders with the asset sale, our investors retain ongoing exposure to the exploration and development of the Butchers Creek Gold Project through our major shareholding in WIN Metals. 'We believe WIN Metals has an excellent technical team, and a motivated Board looking to drive this project forward, and we look forward to seeing their success in advancing Butchers Creek.' Gold production from the Butchers Creek open pit commenced in 1995 with the construction of a 500ktpa conventional carbon in pulp gold ore processing plant, a 9Mt tails storage facility, diesel power station and a 75-person accommodation camp and offices. During operation supplementary ore was trucked some 80kms from the Nicholson's Find gold mine located to the south of Halls Creek (now owned by Pantoro Limited ASX:PNR) and processed at Butchers Creek. Total production from Butchers Creek open pit was 761,000t @ 2.09g/t Au for 52,000oz of gold2 produced until the operation was closed in late 1997 due to the low gold price at the time. The Butchers Creek 500ktpa processing plant has since been decommissioned and mine site rehabilitated. Post closure of the mining operation in 1997 various public and private entities having held the tenure with exploration drilling in the ensuing period carried out by Northern Star Resources in 2004 and Meteoric between 2020 and 2022. Current Mineral Resources The global mineral resource for Butchers Creek is 5.6Mt at 2.0g/t Au for 357,000oz of gold within the Butchers Creek and Golden Crown deposits1 . This is inclusive of 139,000oz of higher confidence indicated resource at Butchers Creek. Meteoric published a Mineral Resource Estimate (MRE) for Butchers Creek in June 20211 whilst restating Northern Star Resources 20076 MRE for Golden Crown1 in accordance with the 2012 JORC code. The Golden Crown MRE combines the Golden Crown and Faugh-a-Ballagh prospects due to their close proximity and similar geological features. Both Butchers Creek and Golden Crown deposits have been reported at a 0.8g/t Au cut-off Mt Bradley has multiple historic workings and was drilled by MEI in 20227 after a geophysical IP (Induced Polarisation) anomaly was detected in 20227 with follow up drilling returning 5m @ 19.7g/t Au from 9m (MBRC016)8 . MBRC016 is located to the east of the Mt Bradley trend of workings. This is encouraging in that WIN have identified a lack of transported cover in the area suggesting the mineralisation intercepted in MBRC016 is insitu and thus potentially a new mineralised trend that has yet to be explored. Titan is a high priority drill target with historic soil samples returning peak gold values of 2.30g/t, 1.92g/t and 1.48g/t as reported by Northern Star Resources in August 20049 . In addition, high grade gold results from soils at Afghan returned 2.99g/t, 2.90g/t and 1.81g/t Au were reported by Northern Star Resources in November 200410 . These high-grade soil samples from Titan and Afghan prospects will be the focus of 2024 field reconnaissance to understand the mineralised system before advancing to a potential drilling campaign About Meteoric Resources Meteoric Resources NL (ASX: MEI) is a Perth based rare earth company that is progressing its flagship Caldeira Project in Minas Gerais, Brazil and aims to become Brazil's next rare - earth producer. The Caldeira Project is an advanced stage exploration project with a true Ionic adsorbed Clay (IAC) deposit with above industry TREO grades and excellent metallurgical recoveries using a standard Ammonium Sulphate (AMSUL) wash flowsheet. These grade and recovery characteristics allow a simple flowsheet to be developed to produce a Mixed Rare Earth Carbonate (MREC) with an anticipated low capital and operating costs. Meteoric aims to become a significant volume, low-cost producer and is committed to supporting and integrating into Western supply chain opportunities. About WIN Metals WIN Metals (ASX: WIN) is a mineral exploration company holding 240km2of granted mining tenure across the highly prolific Widgiemooltha Dome with exposure to the critical metals nickel and lithium. The Company is developing its Mt Edwards Nickel Project which is a unique collection of twelve (12) deposits with a total Mineral Resource Estimate of 13.04 Mt @ 1.45% Ni for 188,160t11. WIN Metals also holds the Faraday-Trainline Lithium Project , a shovel ready Project with a Mineral Resource Estimate of 1.96 Mt at 0.69% Li2O12. The deposit shows substantial expansion potential with mineralisation open at depth with potential for repeat stacked pegmatites. The Company's tenure is located just 80km south of the major regional centre of Kalgoorlie in Western Australia , 30km south-west of Kambalda Competent Person Statement - Meteoric Resources The information in this announcement that relates to mineral resource estimates and exploration results is based on information reviewed, collated and fairly represented by Dr Andrew Tunks who is a Member of the Australasian Institute Geoscientists and Executive Chairman of Meteoric Resources NL . Dr Tunks has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which has been undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Tunks consents to the inclusion in this report of the matters based on this information in the form and context in which it appears. Additionally, Dr Tunks confirms that the entity is not aware of any new information or data that materially affects the information contained in the ASX releases referred to in this report Competent Person Statement - WIN Metals The information in this announcement that relates to mineral resource estimates and exploration results is based on information reviewed, collated and fairly represented by Mr William Stewart , who is a full-time employee of WIN Metals Ltd. Mr Stewart is a member of the Australian Institute of Metallurgy and Mining (member no 224335). Mr Stewart has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Stewart consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Additionally, Mr Stewart confirms that the entity is not aware of any new information or data that materially affects the information contained in the ASX releases referred to in this report. Forward Looking Statements This announcement includes forward-looking statements that are only predictions and are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of WIN Metals Ltd , the directors and the Company's management. Such forward-looking statements are not guarantees of future performance. Examples of forward-looking statements used in this announcement include use of the words 'may', 'could', 'believes', 'estimates', 'targets', 'expects', or 'intend' and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of announcement, are expected to take place. Actual values, results, interpretations or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, recipients are cautioned not to place reliance on forward-looking statements in the announcement as they speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, WIN Metals Ltd does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward-looking statement is based. Contact: Steve Norregaard Managing Director WIN Metals Tel: 0472 621 529 Email: [email protected] (C) 2024 Electronic News Publishing, source ENP Newswire