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A number of changes are afoot at Errawarra Resources Ltd (ASX:ERW) as it makes the ‘transformational’ acquisition of a high-grade silver project in the Pilbara region of Western Australia with a historical production profile of 1.2 million ounces (Moz) of silver from 16,000 tonnes of ore.
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The company will take on a 180 square-kilometre land package comprising the Elizabeth Hill project, which closed down in 2000 due to low silver prices but which produced the aforementioned ore over one year at a head grade of 2,194 grams per tonne.
This means Errawarra will be the first explorer to consolidate the Elizabeth Hill mine and its land package, which also holds several areas with potential for exploration, this being indicated through drilling results such as 11.7 metres (m) at 5,371 g/t Ag from 13m; and 24 m at 1,228 g/t Ag from 64m.
To boost development and exploration activities, the company – which is also planning to change its name to West Coast Silver Ltd (ASX:WCE) – will bring experienced precious metals geologist Robert Mosig to its board.
The company’s big name change will still be subject to shareholder approval.
Alongside this, Errawarra has also embarked on a $3 million placement targeting existing shareholders and new investors including major fund investors.
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Chairman Thomas Reddicliffe said the acquisition was an important opportunity for Errawarra shareholders. “This will enhance our existing projects in the same region of WA with the addition of an interest in a high-grade past-producing silver asset with growth potential not previously tested.”
Errawarra shares have since leapt on the news and at 2.22pm today they were trading at 5.7 cents – a rise of 119.2% since the market opened.
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