ASX ANNOUNCEMENT
4 MARCH 2022
only | Strategic Cu-Li-REEs Acquisition | |
Arunta Province, Northern Territory | ||
Key Highlights | ||
use | • Eastern Metals acquires the Neutral Junction Project from Bowgan Minerals Limited (unlisted) | |
• Acquisition covers 155 blocks across six Exploration Licences covering 504 km2 | ||
• On completion, EMS' Arunta Project land holding totals 593km2 inclusive of the Company's | ||
existing Barrow Creek tenement | ||
• Tenement package is prospective for base metals, lithium, rare earth elements and gold, | ||
including a highly prospective copper trend adjacent to the Home of Bullion copper mine, which | ||
personal | is already owned by Eastern Metals | |
• Part of the tenement package acquired is adjacent to the Sandover Copper Project held by | ||
Encounter Resources (ASX: ENR) | ||
• Arunta Pegmatite Province is prospective for LCT pegmatites and associated lithium-bearing | ||
mineralogy | ||
• Several companies including Core Lithium (ASX: CXO) and Australasian Gold (ASX: A8G) have | ||
recently commenced exploration for lithium in the pegmatites in the Barrow Creek pegmatite | ||
field, and in the wider Northern Arunta Pegmatite Province | ||
• Binding Heads of Agreement executed with Asset Sale Agreement to follow | ||
• 100% interest in five tenements acquired, with a legal ~75% joint venture interest in a sixth | ||
tenement held by Mithril Resources (ASX: MTH) along with management control. | ||
Eastern Metals Limited (ASX: EMS, 'Eastern Metals' or 'the Company') is pleased to announce that it | ||
For | ||
has secured a portfolio of significant exploration assets ("the Acquisition"), located in the Arunta | ||
pegmatite province in the Northern Territory. This Acquisition includes tenure immediately adjacent to | ||
and | along trend from the Company's Home of Bullion Copper Mine which demonstrates excellent |
potential for copper-gold mineralisation. The broader tenement package is prospective for base metals, lithium, rare earth elements (REEs) and gold.
ASX: EMS • info@easternmetals.com.au • www.easternmetals.com.au • Page 1 of 7
Managing Director and CEO, Wayne Rossiter said,
"Our Arunta Project has been significantly enhanced with this acquisition which dramatically increases the scope to discover additional copper and gold resources along trend from the Home of Bullion Mine, in addition to targets already identified on existing tenure. This new area is known to have anomalous copper from earlier exploration. The significant increase this Acquisition brings in the Barrow Creek
onlypegmatite field and broader Arunta Pegmatite Province provides Eastern Metals with significantly increased potential for discovery, not just of lithium, but also REEs, base metals and gold."
Neutral Junction Project
The Neutral Junction Project acquired from Bowgan comprises two distinct tenement areas, all located within the Northern Arunta Pegmatite Province. These are the northern Home of Bullion - Donkey usecreek areas and the southern Adnera area. These fall within Eastern Metals' Arunta Project area, which is situated to the east of the Stuart Highway between Alice Springs and Tennant Creek near Barrow
Creek. personalFor
Figure 1. Eastern Metals' expanded Arunta Project tenure
ASX: EMS • info@easternmetals.com.au • www.easternmetals.com.au • Page 2 of 7
showing interpreted Barrow Creek pegmatite field
Tenement | Name | Area | Blocks | Interest | Holder | Status | ||||||||||||||||
Home of Bullion - Donkey Creek Area | ||||||||||||||||||||||
EL28615 | Donkey Creek | 13.00km2 | 4 | 100% | Bowgan | Current | ||||||||||||||||
EL32037 | Home of Bullion | 81.25km2 | 25 | 100% | Bowgan | Current | ||||||||||||||||
Adnera Area | ||||||||||||||||||||||
EL24253 | Neutral Junction | 133.25km2 | 41 | 75.14% | Mithril1 | Current | ||||||||||||||||
EL29475 | Adnera | 81.25km2 | 25 | 100% | Bowgan | Current | ||||||||||||||||
EL30797 | Ooralingie | 123.50km2 | 38 | 100% | Bowgan | Pending Renewal | ||||||||||||||||
only | ||||||||||||||||||||||
EL31292 | Buggy Camp | 71.50km2 | 22 | 100% | Bowgan | Current | ||||||||||||||||
503.75km2 | ||||||||||||||||||||||
1 Tenement held by Mithril Resources Limited (ASX: MTH). The 75.14% interest held by Bowgan in the Joint Venture is pursuant to a Joint | ||||||||||||||||||||||
Venture Agreement dated 26 April 2011 between Mithril Resources Ltd, Mega Hindmarsh Pty Ltd and Bowgan. | ||||||||||||||||||||||
use | ||||||||||||||||||||||
Home of Bullion - Donkey Creek Area | ||||||||||||||||||||||
Eastern Metals' flagship asset in the Northern Territory is the Home of Bullion deposit at Barrow Creek | ||||||||||||||||||||||
personal |
on EL23186, which was acquired from Kidman Resources (now owned by Wesfarmers) which hosts a total Identified Mineral Resource of 2.5 million tonnes averaging 1.8% copper, 2.0% zinc, 36g/t silver, 1.2% lead and 0.14g/t gold, The Home of Bullion deposit is classified as an Advanced Exploration Project under the Valmin Code.
The Home of Bullion-Donkey Creek tenements acquired from Bowgan were subject to previous exploration by Aberfoyle during 1995-1996 which confirmed anomalous levels of copper-lead-zinc, along with gold and silver however no targets were followed up with deep drilling. Eastern Metals is actively reviewing historical exploration information over this area. This area, which lies within the Barrow Creek
egmatite field, is also prospective for gold, silver, REEs, and lithium.
Eastern Metals' strategy is to conduct resource expansion drilling on the Home of Bullion deposit where Forthe existing resource remains open along strike and dip. In addition numerous potential VMS targets exist along trend, principally to the west and northwest of the deposit. This copper trend continues from our existing tenure into the Home-ofBullion-Donkey Creek tenement package acquired from Bowgan
which includes the Mulbangas copper prospect.
Adnera Area
Adnera tenements are located within the Arunta Block, with prospectivity for economic copper and gold being recognised within an orogenic (Tanami-style) and IOCG (Tennant Creek-style) deposit setting.
ASX: EMS • info@easternmetals.com.au • www.easternmetals.com.au • Page 3 of 7
These tenements are adjacent to the Sandover Project held by Encounter Resources (ASX:ENR), where high grade copper has been identified at surface in an interpreted Zambian copper belt analogue.
Exploration potential for REEs is also identified within an alaskite (alkali feldspar leucogranite) further east of Adnera Creek where high zirconium values were confirmed. This area is also prospective for
onlygold, silver, REEs, and lithium bearing pegmatites.
Barrow Creek Pegmatite Field
Eastern Metals' EL 23186 and Home of Bullion and Donkey Creek tenements acquired from Bowgan lie within the Barrow Creek pegmatite field. The pegmatites in this area intrude metamorphosed mudstones, sandstones, schists and amphibolite of the Palaeoproterozoic Bullion Schist, which itself is the host rock useof the Company's Home of Bullion copper deposit. The pegmatites are thought to be related to the Barrow Creek granite complex, which occurs widely throughout the Barrow Creek area, including at Prospect D in EL 23186 where it outcrops. Interpretation of geophysical data suggests the granite occurs
at shallow depth in the Home of Bullion area also.
personalSeveral companies have recently commenced exploration for lithium in the pegmatites in the Barrow Creek pegmatite field and in the wider Northern Arunta pegmatite province, however, there has been no
prior exploration for lithium in the Company's Barrow Creek project area.
Pegmatites in the Barrow Creek pegmatite field are grouped into three main zones known as the western group of pegmatites, the eastern group and the Neutral Junction group. Some of these pegmatites were worked on a generally small scale, largely for tin, tungsten, tantalum and mica, mainly from the 1940s to the 1980s. The pegmatites are up to a kilometre or so in strike length and from less than a metre to a f w metres wide. The Northern Territory Geological Survey (Frater, 2005) has reported analyses of grab samples taken from 12 pegmatite workings in the Barrow Creek field. The highest lithium values, averaging 570 ppm Li, were obtained from pegmatites in the Neutral Junction group. This result was amongst the highest values returned from sampling in the wider Northern Arunta pegmatite province. The main occurrences in the Neutral Junction group are about 3 kilometres south of the Neutral Junction
Forhomestead. EL 23186 is on the Neutral Junction pastoral lease, about 4 kilometres to the east of the homestead.
The Northern Arunta Pegmatite Province covers a large area of the Arunta Block centred around the Stuart Highway, just north of Alice Springs to south of Tennant Creek. It extends to the west to the Tanami Highway and to the east to the Plenty Highway. There is a large number of tin, tungsten, tantalum, mica and workings for other minerals developed in pegmatites in this province. Until very recently, no systematic exploration for lithium had been carried out in the Barrow Creek pegmatite field.
ASX: EMS • info@easternmetals.com.au • www.easternmetals.com.au • Page 4 of 7
Lithium is known to occur elsewhere in pegmatites in the minerals spodumene, petalite and lepidolite, a mica.
The mineralised pegmatites in the Northern | |
only | Arunta pegmatite province occur in four main |
clusters, one of which is referred to as the | |
Barrow Creek pegmatite field. The other clusters | |
are the Napperby pegmatite district northeast of | |
Yuendumu, the Anningie pegmatite group north- | |
east of Ti-Tree, and the Alcoota pegmatite | |
use | district well to the east. The Anningie lithium |
projects held by Core Lithium (ASX: CXO) and | |
Australasian Gold (ASX: A8G) near Mt Peake | |
lie within the Anningie pegmatite group 60 | |
kilometres southwest of Barrow Creek. The Mt | |
Peake Vanadium-Titanium-Iron Project, owned | |
personal | by TNG Limited (ASX: TNG) also lies in this |
area. In addition, Core Lithium's Barrow Creek | |
lithium project lies within the Barrow Creek | |
pegmatite field. |
Figure 2. Location of the Northern Arunta Pegmatite
Province
Key Acquisition Terms
Eastern Metals and Bowgan Minerals executed a Binding Heads of Agreement on 3 March 2020 with an Asset Sale Agreement to follow. The key terms of the Acquisition includes consideration of $150,000, Formade up of $50,000 in cash and the allotment of 408,163 fully paid EMS shares, issued at a price of $0.245 per share. The issue price of $0.245 per share is the 30 day VWAP of the Company's shares traded on the ASX, and is a 22.5% premium to the Company's October 2021 IPO price. The shares
issued as part of the Acquisition will be escrowed for 12 months from the date of issue.
Consideration is payable upon completion being 20 Business Days after registration of EMS as the registered owner of each Tenement owned by Bowgan
ASX: EMS • info@easternmetals.com.au • www.easternmetals.com.au • Page 5 of 7
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Eastern Metals Ltd. published this content on 04 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2022 00:25:07 UTC.