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Errawarra Resources Ltd (ASX: ERW) (Errawarra or the Company) is delighted to announce that it has entered binding agreements (refer Acquisition Terms) pursuant to which the Company has acquired 70% of the historical Elizabeth Hill Silver Project (“Project” or “Elizabeth Hill”), 70% of the silver rights to the Pinderi Hills Project tenement package and 70% of the ownership of 3 tenements or tenement applications surrounding the silver project. This collective tenement package totalling 180km2 is in the Tier 1 mining jurisdiction of the Pilbara, Western Australia (Figure 2 – Project Location).
HIGHLIGHTS:
- Transformational acquisition of the high-grade Elizabeth Hill Silver Project in the West Pilbara mining region of Western Australia
- Acquisition agreed in conjunction with a $3 million placement to existing shareholders and new investors including major fund investors
- Historical production of 1.2Moz Ag from 16kt ore (~2,194 g/t Ag head grade)1 over only 1 year of operation
- Elizabeth Hill mining operations ceased in 2000 due to declining silver prices (~USD $5/oz)2
- Requisite geology and structure present, with the Project located on a major ultramafic complex with multiple high grade silver drill intercepts including3:
- 11.7 m @ 5,371 g/t Ag from 13m (21EHDD003)
- 24 m @ 1,228 g/t Ag from 64m (AMEHRC009)
- 43 m @ 370 g/t Ag from 0m (22AMC001); and
- 24.8m @ 915 g/t Ag from 2m (21EHDD001)
- Errawarra becomes the first explorer to consolidate the Elizabeth Hill Mine and the surrounding land package of 180km2, which covers additional highly prospective underexplored areas for silver mineralisation
- Experienced precious metals geologist Mr. Robert Mosig has joined the board to assist in fast-tracking forward development and exploration activities at Elizabeth Hill
- Highly respected ERM Consultants led by Mr Ian Stockton have already commenced analysis of the Elizabeth Hill geological setting including comparisons with analogous projects globally to assist in target generation
- Project located on a granted mining lease (ML) and all the required exploration/drilling approvals are in place to fast track immediate drilling post site visit and target prioritisation
- Errawarra to be renamed West Coast Silver Limited (proposed ASX code: WCE) subject to shareholder approval
The Elizabeth Hill Project acquisition is conditional upon meeting the condition precedent and obtaining the relevant approvals, amongst others, Errawarra entering into separate joint venture agreements with Alien Metals Limited (Alien) (AIM: UFO) and GreenTech Metals Limited (GreenTech).
This transformational acquisition ensures that the Company is now underpinned by a high-grade historical producing silver asset, with significant resource growth potential and future low-cost operational opportunities in a Tier 1 global mining jurisdiction.
Chairman Thomas Reddicliffe commented:
“This is an exceptional opportunity for our shareholders, and we are fortunate to have secured an interest in the Elizabeth Hill Silver Project and extensions. This will enhance our existing exploration projects in the same region of Western Australia with the addition of an interest in a high-grade past producing silver asset with growth potential not previously tested.”
“The combination of existing high-grade silver intercepts signify growth potential and compelling exploration prospectivity at both near mine and regional targets. With Elizabeth Hill being located on an approved mining lease, this presents an opportunity for the Company to fast-track drilling and, if successful, mining supported by a buoyant silver market driven by strong investor demand and global issues.”
“We look forward to immediately getting work underway with regular news in the near future”.
Figure 1 - Australia’s largest native silver nugget “The Karratha Queen” recovered from the Elizabeth Hill Mine during the past mining operation weighs in at 145kg, measures an impressive 85 x 38 x 47cm and contains approx. 3,520 ounces of silver displayed at The Perth Mint. Photo courtesy of The Perth Mint.
Click here for the full ASX Release
This article includes content from Errawarra Resources, 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.
Silver Price Surges to US$37, Highest Value Since May 2011
The central bank has held its benchmark rate at 4.25 to 4.5 percent since November 2024.
Silver price, June 10 to June 17, 2025.
Chart via the Investing News Network.
CME Group's (NASDAQ:CME) FedWatch tool shows more than half of market respondents predict a 0.25 percent cut at the Fed's September meeting, while just 8 percent are expecting the Fed to make a deeper 0.5 percent cut.
The central bank is widely expected to leave rates unchanged at its June and July meetings.
Silver's price surge also comes amid escalating tensions between Israel and Iran. The two countries have come closer to war in recent days, with Israel striking nuclear and military targets deep in Iran.
On Monday (June 16), US President Trump took to Truth Social to urge a complete evacuation of Tehran ahead of planned strikes on targets in the city. He also urged Iran to abandon its nuclear ambitions.
On the economic front, the US Bureau of Labor Statistics released its May consumer price index figures on June 11. The data shows inflationary growth, with the all-items index ticking up to 2.4 percent from 2.3 percent in June.
Growth was tempered mainly by falling prices at the pumps. Additionally, retail prices have yet to feel the full impact of US tariffs as retailers continue to work through stockpiles acquired earlier in the year.
Elsewhere, gold and equity markets weren’t faring as well on Tuesday.
Gold was flat, trading at US$3,385 per ounce. It has surged more than 25 percent this year, setting a slew of new price records, and has continued to trade in elevated territory, fueled by the same conditions as silver’s recent run. However, silver benefits from a lower entry point for investors looking for more affordable safe-haven investments.
The S&P 500 (INDEXSP: INX) was down on Tuesday, recording a 0.78 percent decline to 5,986. The Nasdaq-100 (INDEXNASDAQ: NDX) was also down, falling 0.89 percent to 21,744, and the Dow Jones Industrial Average (INDEXDJX: .DJI) slipped 0.68 percent to 42,222.
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Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.