- 50% interest acquired in granted WA mining lease
- Right to acquire remaining 50% provides pathway to full ownership
- Located in proven lithium and gold area
- Project includes inferred gold JORC resource
Helix Resources (ASX: HLX) has completed the strategic acquisition of a 50% interest in the Weerianna gold–lithium project in the West Pilbara region of Western Australia.
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The acquisition of mining lease M47/223 from Western Metals provides Helix with exposure to both an advanced gold resource and emerging lithium potential in a rapidly developing lithium province.
Best known for its NSW copper and gold assets, Helix is acquiring the 50% interest in Weerianna for a total consideration of $1,327,915, made up go $1,002,429 in shares and $325,486 in cash with an initial payment of $25,000.
Helix retains a first right to acquire the remaining 50% interest.
Weerianna is located in a tier one mining jurisdiction, approximately 35km from the Radio Hill processing plant, providing a potential near-term development pathway and around four km from the Andover lithium discovery and adjacent to Azure Minerals’ tenement package.
The project has been the subject of a historical estimate of mineralisation reported by Artemis Resources which estimated an inferred resource of 975,700 tonnes at 2.0 grams per tonne (g/t) gold for 62,739 ounces.
The Weerianna gold project was originally defined by Noranda which pegged the tenement package in 1978 and undertook systematic programs throughout the 1980s. Noranda completed extensive drilling and trenching, including more than 130 drill holes, delineating multiple near-surface, shear-hosted gold lodes and establishing the geological framework for the deposit.
The project was later advanced under the ownership of Pioneer Minerals, Plutonic Gold and ultimately Homestake Mining Company, providing a strong technical foundation for current exploration and development activities.
The weak gold price environment of the late 1980’s and early 1990s meant that the relatively small defined gold deposit was not of sufficient scale for the larger companies that owned it and the project remained undeveloped.
At current gold prices and given the upside potential of strike and depth extensions to the existing well-defined gold mineralisation, Helix considers the Weerianna deposit to be an attractive opportunity.
On the gold front Helix intends to commence exploration activities including RC and diamond drilling targeting gold deposit extensions, structural controls and new mineralised.
On the lithium front fieldwork will include mapping and sampling of pegmatites in coming months, including orientations and geochemical and geophysical targeting.
HLX is steady at 0.1¢. Mkt cap $5.346M.
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