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Mining industry

Native Mineral Resources Acquires Granite Castle Project in Sydney, Australia

Strategic Insights

— 2 min read

Native Mineral Resources Holdings Limited (NMR) has acquired the Granite Castle Project, a strategic asset from Collins St Convertible Notes Pty Ltd (Collins St), as part of its 2024 binding agreement. The project holds significant potential for gold production at NMR's Blackjack Operations, with Managing Director Blake Cannavo highlighting the opportunity to increase NMR's mineral inventory and add to the potential feed for the Blackjack processing plant. The Granite Castle Project is located 160km west of Charters Towers, with gold mineralization contained within shear zones hosted by younger phases of the Dumbano Granite.

Key Takeaways:

  • The Granite Castle Project consists of two exploration permits for minerals and one Mining Development Licence, with multiple gold-silver shear zones including the Granite Castle and Coronation shears.
  • Over 22,000m of drilling has occurred on the project, with 370 drillholes drilled to date, covering 13 prospects.
  • The Granite Castle shear zone has a 2004 JORC compliant resource developed by the previous owner Mantle Mining Ltd (Mantle) in 2008, with mapping indicating the shear extends 1km west and 200m east.
  • There are 12 additional parallel shear zones that have not been sufficiently explored, providing significant exploration upside.
  • NMR is planning fieldwork to assess historical mapping, sampling, and drilling, with the view to commence drilling and update resources to JORC 2012 standards.
  • The project is located 170km west of NMR's Blackjack Operations, where gold production commenced this month.
  • The geological model for the Granite Castle mineralization is relatively simple, with gold and silver mineralization hosted in steeply dipping (~80 degrees) shear zones.
  • The shear zones are characterized by sericite-talc alteration with sulphide minerals, silica flooding, and extensive brecciation.
  • Mineralization at Granite Castle is strongly structurally controlled and not confined to a specific host lithology.
  • A further 12 discrete shear zones have been identified within the project area, separate to the Granite Castle shear.

Statistics:

  • Over 22,000m of drilling has occurred on the project (22,000m).
  • 370 drillholes have been drilled to date (370 drillholes).
  • 15,493m of drilling has occurred on the Granite Castle shear (15,493m).
  • 3,540m of drilling has occurred on the Coronation shear (3,540m).
  • The Granite Castle shear has a 2004 JORC compliant resource developed by Mantle in 2008.
  • The shear zones are characterized by sericite-talc alteration with sulphide minerals, silica flooding, and extensive brecciation.

Sources:

  • Native Mineral Resources Holdings Limited news release.
  • Mantle Mining Ltd (Mantle) announcements.
  • Collins St Convertible Notes Pty Ltd (Collins St) agreement.

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