Forrestania Resources Acquires North Ironcap Gold Project

Strategic Insights -

Forrestania Resources Limited has announced its acquisition of the North Ironcap gold project, a significant gold exploration asset in Western Australia. The project has a long history of exploration, with drilling campaigns dating back to the 1980s, and has undergone considerable technical work, including metallurgical testing and pit design studies. The acquisition marks a strategic step forward for Forrestania Resources, enhancing its gold portfolio and aligning with its strategy of building a pipeline of quality exploration and development opportunities.

Key Takeaways:

  • Forrestania Resources Limited has acquired 100% of the fully paid ordinary shares of North Iron Cap Pty Ltd for a consideration of $2,781,266 in cash and 42,140,398 fully paid ordinary shares in Forrestania Resources Limited at a deemed issue price of $0.11 per share.
  • The North Ironcap gold project has a JORC-compliant Inferred Mineral Resource of 105,000 ounces and strong geological potential, with a significant trend of gold mineralisation in the southern portion of the project area.
  • The project has undergone considerable drilling, metallurgical testing, and pit design work, including 298 RC holes and 7 diamond drill holes, which led to a mineral estimation reported by Snowden in 2006 of 558,577 tonnes at 2.39g/t gold.
  • The acquisition is subject to several conditions precedent, including completion of financial, legal, and technical due diligence by Forrestania Resources, and obtaining the necessary third-party approvals and consents.
  • The project is located in the Forrestania Greenbelt in Western Australia, a regionally significant greenstone belt with a strike length of over 300kms.
  • Mineralisation at North Ironcap is stratigraphically controlled within an interflow chemical sediment sandwiched between tholeiitic basalts or amphibolites on the footwall and with black shales and komatiitic basalts on the hanging wall.
  • The gold mineralisation occurs as lenses in the brecciated gossanous, generally oxidised, chemical sediment dipping at up to 60deg to the east.

Statistics:

  • Total consideration: $2,781,266 in cash and 42,140,398 fully paid ordinary shares in Forrestania Resources Limited at a deemed issue price of $0.11 per share.
  • JORC-compliant Inferred Mineral Resource: 105,000 ounces.
  • Historical mineral estimation (Snowden, 2006): 558,577 tonnes at 2.39g/t gold.
  • Number of RC holes: 298.
  • Number of diamond drill holes: 7.
  • Strike length of the Forrestania Greenbelt: over 300kms.

Sources:

  • Forrestania Resources Limited, ASX announcement, [No date].
  • PosGold 1995 combined Annual Report for the Bounty Mine Site by T D Major (WAMEX report #A48202).
  • Snowden, 2006, mineral estimation report.