Auroch Minerals has acquired two high-grade zinc projects in world-class Australian base metals region of South Australia with investors today welcoming the news.
The ASX-listed explorer is seeking to purchase 90% of the Arden zinc project and 100% of the Bonaventura Zinc Project for 8.3 million shares and a total of 11 million performance shares which vest once Auroch reaches performance milestones at the projects.
In addition, Auroch will issue 1.5 million ordinary shares to the party that introduced the acquisitions as well as 1 million performance shares which vest if any of the performance milestones are achieved.
The Arden project – which lies ~3.5 hours’ drive north from Adelaide along highways and sealed roads – has potential to host large-scale zinc, lead, copper and cobalt stratiform sedimentary exhalative (SEDEX) deposits.
It consists of an already granted 710 square kilometre Exploration Licence with several key mineralised targets already identified within the tenure.
Multiple assays of between 9-10% zinc and 0.1% cobalt in historic trench-sampling over a strike length of 1.5km, with a total strike length of the prospective geological unit of over 10km
At the Kanyaka target within the Arden Project recent sampling has returned up to 2.5% cobalt.
The project – which has predominantly been cleared for farming – is supported by infrastructure including rail, sealed roads and grid power.
Meanwhile, the Bonaventura zinc project comprises a 234-square kilometre exploration licence in the northern part of Kangaroo Island.
The project covers highly prospective geology and historic mines along 30km of strike of the regional-scale Cygnet-Snelling Fault.
Previous drilling at Bonaventura hit high-grade zinc intersections, including 16m at 3.4% zinc and 0.7% lead from 52m (including 6m @ 6.3% zinc), 11m at 3.1% zinc and 1.5% lead from 26m (including 1m @ 8.0% zinc).
Samples from the historic Kohinoor gold mine returned grades up to 28 g/t gold.
The project has several high-grade zinc (base-metal) and gold targets that are drill-ready.
The Arden Project and Bonaventura Project in South Australia comprise a substantial zinc, lead and copper play supported by excellent infrastructure”. Auroch Executive Chairman Glenn Whiddon said.
“The projects cover several historical mines and provide multiple targets. This acquisition provides Auroch with multiple drill-ready targets for large scale base-metal mineralisation that will be systematically evaluated in 2018”.
The Company has planned an aggressive systematic exploration programme for both the Arden and Bonaventura Projects.
At Arden, site reconnaissance mapping, rock chip and soil-sampling will begin immediately in the known target areas.
A portable XRF will be used to quickly cover large areas with tightly-spaced soil samples, the results of which can be used to recognise important vectors to mineralisation.
At Bonaventura, re-processing and interpretation of the existing high-resolution geophysical data will begin immediately.
Site reconnaissance mapping, rock chip and soil-sampling of the known target areas will also take place.
Maiden drilling programs of the highest-priority targets at both projects are expected to begin in the second quarter.
Shares in Auroch have gained 0.5c to 11c in Tuesday afternoon trading.