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- The Karonie project acquisition includes granted gold tenure, which already has a resource estimate of 185,700 ounces gold.
- Acquisition strengthens Eastern Goldfields footprint.
- Ada Ann delivers upgraded MRE of 18,160oz.
Forrestania Resources (ASX:FRS) has taken another step in cementing its Eastern Goldfields hub strategy in Western Australia, this week completing the acquisition of the Karonie gold project. The purchase from Goldtribe Corporation, a subsidiary of Alchemy Resources (ASX:ALY), was originally announced in March.
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The buy comprises a portfolio of highly prospective gold tenements within the Eastern Goldfields hub and includes 16 exploration licences, 942 sq. km, of highly prospective mineralised structures 100km east of Kalgoorlie.
“The completion of the Karonie gold project acquisition marks another important step in consolidating Forrestania’s position within the Eastern Goldfields, with the company now holding a significant and highly prospective tenure footprint in the region,” Forrestania’s chairman, David Geraghty, said.
“Importantly, the transaction structure preserves capital while securing a project with an established mineral resource and clear exploration upside, allowing Forrestania to continue advancing its portfolio of Western Australian gold assets as it progresses existing production and development activities.”
Karonie is located adjacent to Vault Minerals’ (ASX:VAU) 595,000 ounces Aldiss Mining Centre and within 50km of VAU’s Randalls processing plant.
The project covers areas of under-explored ground just 12km along strike to the south of Ramelius Resources’ (ASX:RMS) 1.7Moz Bombora deposit and extending up towards Northern Star Resources (ASX:NST) Carosue Dam Mine in the north.
The project consists of the KZ5, Taupo, and Parmelia deposits, which, between them, host a mineral resource of 185,700 ounces.
Elsewhere in Western Australia, Forrestania has released an updated MRE for the Ada Ann deposit at the company’s Coolgardie Gold Hub of 204,500 tonnes at 2.76 grams per tonne (g/t) for 18,160 ounces of gold.
Building on regional success from geochemical and historic drilling in and around the Christmas Gift and Bonnie Vale North prospects, a recent 12-hole drilling campaign at Ada Ann delivered strong results, which supported the upgrade.
“This latest mineral resource update at Ada Ann has delivered encouraging results, confirming further high-grade mineralisation and providing a better understanding of the geology and the orebody within a newly applied mining lease,” Mr Geraghty told Forrestania shareholders today.
He added, “The mineral resource update points to a continued growth profile for Ada Ann and supports our broader strategy of building scale across the Coolgardie Hub, leveraging the extensive regional infrastructure, which provides many processing options for a future mining operation.”
FRS is steady at 51¢. Mkt cap $575.9M.
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