TNT Mines’ hunt for undervalued mining assets in North America has taken a major step forward with the acquisition of the Pelley Ridge zinc project in Montana.
Metals of Americas, which holds the rights to Pelley Ridge, has been acquired by TNT for 6.75 million performance Shares.
These will be issued on the successful discovery of a commercial grade resource at Pelley Ridge – a JORC compliant resource estimate of at least “indicated” status of greater than 2 million tonnes at 6% zinc equivalent.
Pelley Ridge boasts a drill ready, high grade, defined zinc target with year-round access. Importantly, it is in a similar tectonic and time-stratigraphic setting, and located in the same basin, as the world-class Sullivan zinc deposit (over 160Mt of ore grading at 12% lead and zinc).
TNT Mines Chairman Brett Mitchell said Pelley Ridge fits the profile of a potentially company making asset TNT was looking for.
“It is a drill-ready, high-grade zinc target covering over 2,000 hectares on freehold ground in the first-class mining region of Montana, USA,” he said.
Mr Mitchell said despite some highly significant intercepts including 10.8m at 7.2% zinc, only limited work had been conducted by previous owners, including most recently Chinese mining group MMG as part of their exit from USA mining projects in 2016.
Next phase Pelley Ridge exploration program is expected to commence with field work and an IP survey to be followed up by a June drilling program, which is expected to cost around $500,000.
TNT has $3 million in the bank and nil debt with no plans to raise additional capital on the horizon.
Highly experienced mining executive and mine finder Cherie Leeden will lead the Pelley Ridge zinc exploration programs and lead the new project generation strategy for the Company.
Ms Leeden is based in the USA and was instrumental in securing the project for TNT Mines. She was the founder and former managing director of ASX-listed Battery Minerals (ASX: BAT).
Over the past 6 months, TNT have been evaluating a number of potential gold and base metal projects in the USA and Canada that may fit its profile for potential future acquisition or investment by the Company.
Shares in TNT Mines were last trading at 10c.