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The Directors of eMetals Limited (ASX:EMT)(eMetals)(Company) are pleased to submit the Quarterly Activities Report and Appendix 5B for the quarter ending 30 June 2022.
Highlights
- Two tenement applications following the acquisition of Salmon Gums Minerals Pty Ltd (ACN 651 315 258) have been granted at the highly prospective Salmon Gums Project in the Albany Fraser Range Province of Western Australia.
- The Company now holds four granted tenements (E63/2049, E63/2066, E63/2126, E63/2127) covering an area of 219 blocks for a total of 630 square kilometers of the Eucla Basin prospective for Ionic Adsorption Clay (IAC) style rare earth element (REE) mineralisation.
- Heritage agreement progressed during the June Quarter at the Salmon Gums Project in preparation of a program of works application.
- Additional prospective tenure applied for and granted at the Twin Hills Gold Project.
SALMON GUMS PROJECT
Salmon Gums holds four exploration licenses (E63/2049, E63/2066, E63/2126, E63/2127) covering an area of 219 blocks for a total of 630 square kilometers of the Eucla Basin in the Albany Fraser Range Province of southern Western Australia (Project).
The Project cover areas underlain by meta-granites of Archaean to Proterozoic age. These granitic rocks are situated within the Albany– Fraser Orogen on the south and southeastern margins of the Yilgarn Craton.
Outcrop of the meta-granites within the Project is rare with majority of the tenements overlain by Cainozoic sediments, aeolian sands and salt lakes. Whilst there are no known occurrences of mineralisation in either area, limited prospecting or exploration has been historically conducted.
From a study of the historical open file reports available on WAMEX(A106697,A97441) the previous exploration which has been conducted has predominantly been for gold and to a lesser extent for uranium, lignite and base metals. The majority of previous exploration involved the completion of various geophysical surveys including aero magnetics, gravity and radiometric. In some cases, this work was followed up by limited soil geochemistry, but no anomalies of significance were defined. Most significantly several of the early explorers completed shallow drill evaluation of various targets.
Figure 1 – EMT Projects
In the period 2006 to 2008 Toro Energy Ltd (Toro) completed 10 aircore drillholes within E63/2127 and assayed the resulting spoil for iron, copper, gold, nickel, lead, zinc, and uranium in a search for uranium mineralisation. On E63/2049 Toro completed six aircore drillholes to a maximum depth of 53 meters but once again no drill intersections of significance were reported for the targeted minerals. On adjoining lease E63/2066 two drillholes reached a maximum depth of 44 meters but no significant results were reported. In 2009 to 2013 Anglogold Ashanti Australia Ltd (Anglo) completed 17 aircore drillholes to a maximum depth of 67 meters in a search for gold mineralisation. No significant results were returned, and the tenements were abandoned. Prior to the aircore drilling Anglogold Ashanti had completed fence lines of auger in an effort to detect gold in calcareous soils. Minor gold anomalism was detected but was deemed insignificant. The holes were also analysed for REE mineralisation and produced a maximum result of 1,108 ppm REE oxides (REO) plus Yttrium.
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This article includes content from eMetals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
EMT:AU
Formation of Joint Venture Molyhil Project, Northern Territory
Highlights:
- JV formed with IVR completing by spending $1,000,000 on the tenements (Stage 1 commitment) and the transfer of 25% interest in the Molyhil tenements and the sale of Thor’s 40% interest in Bonya tenement EL29701 (Table 1 and 2).
- The initial interest for the parties is 25% Fram and 75% Molyhil.
- IVR will now issue Thor A$250,000 worth of IVR shares upon the formalisation of Fram’s 25% JV interest.
- Fram can opt to continue to earn up to 80% interest by spending up to, a further $7,000,000 on the Tenements via a three-stage process.
- The JV at Molyhil will allow Thor to focus on its priority USA Uranium assets and Alford East Copper-REE Project while retaining a meaningful interest in the Molyhil Project.
Nicole Galloway Warland, Managing Director of Thor Energy, commented:
“The Directors are delighted that the Stage 1 Commitment has been completed and that Fram is progressing with developments on this exciting tungsten/molybdenum deposit. The increase in the mineral resource endowment is underpinning feasibility work at Molyhil.
“The commitment shown by Fram in diligently working through all aspects of this deposit is to be applauded.
“The Molyhil divestment and Bonya sale (EL29701) will support the Company’s focus on its priority US uranium assets, where we see the most significant and nearest-term value potential for Thor’s shareholders.”
Key Transaction Details
Formation of the Joint Venture
Under the execution of the Stage 1 obligations, a JV Agreement was executed between Fram and Molyhil on 13 August 2024 (“JV Commencement Date”). The initial JV interests of the parties are 25% Fram and 75% Molyhil in Molyhil, with the 40% sale of Bonya EL29701 (Table 1 and 2).
Stage 1 Joint Venture Consideration
On the formalisation of Fram’s 25% JV interest, IVR will issue Thor A$250,000 worth of IVR shares at a deemed price equal to the higher of the Volume Weighted Average Price for the 15-day trading period immediately preceding the 25% earn-in date, or A$0.05 per share.
Stage 2 Earn-In
Fram shall, within 28 days of the JV Commencement Date, give Molyhil written notice of its intention to earn a further 26% interest in the Molyhil Tenements (“Stage 2 Earn-In Notice”), bringing its total interest to 51%.
If Fram issues a Stage 2 Earn-In Notice, Fram must spend A$2,000,000 (which amount is in addition to the Stage 1 Commitment) on exploration on or before the third anniversary of the JV Commencement Date (“Stage 2 Commitment”) to earn the additional 26%.
Upon Fram meeting the Stage 2 Commitment, Fram will be entitled to a 51% interest in the Tenements.
Stage 3 Earn-In
Fram shall, within 28 days of the Stage 2 Completion Notice, give Molyhil written notice of its intention to earn a further 29% interest in the Tenements (“Stage 3 Earn-In Notice”), bringing its total interest to 80%.
If Fram issues a Stage 3 Earn-In Notice, Fram must spend A$5,000,000 (an amount additional to the Stage 1 and Stage 2 Commitments) on exploration on or before the sixth anniversary of the JV Commencement Date (“Stage 3 Commitment”) to earn the additional 26%.
Upon Fram meeting the Stage 3 Commitment, Fram will be entitled to an 80% interest in the Tenements.
Project Background
The Molyhil tungsten-molybdenum deposit is located 220km north-east of Alice Springs (320km by road) within the prospective polymetallic province of the Proterozoic Eastern Arunta Block, in the Northern Territory (Figure 1).
As announced on (ASX/AIM: 31 May 2024), Thor reported a revised Mineral Resource Estimate comprising Measured, Indicated, and Inferred Mineral Resources, totalling 4.65 million tonnes at 0.26% WO3 (Tungsten trioxide), 0.09% Mo (Molybdenum), and 0.04% Cu (Copper) using a 0.05% WO3 cut-off.
The Bonya tungsten and copper tenement (EL29701) is located approximately 30km to the northeast of Molyhil (Figure 1). Thor, in JV with Arafura, held a 40% equity interest in the tenements.
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This article includes content from Thor Energy PLC, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
