Litchfield Minerals Ltd (ASX:LMS) is set to boost its holdings in the copper, precious and base metals space in the Northern Territory with the acquisition of three projects including the Oonagalabi copper-zinc-gold deposit, the Paradise Well copper-gold-rare earth elements prospect and the Silver Valley silver-copper-lead prospect.
Oonagalabi is the jewel in the crown of this acquisition – which was completed for $200,000 – where previous drill intercepts have yielded 36.6 metres at 1.0% Cu and 1.7% Zn, and gold was sampled at 1 gram per tonne near the surface in the same hole.
Overall, 22 holes have been drilled at the deposit, defining a large mineralised system over 1.5km with mineralisation still open along strike to the north and south along a northeast-trending fold hinge.
Oonagalabi’s mineralisation is sediment-hosted, and it has several geological echoes of the Jervois Base Metal deposit – located 150 kilometres to the northeast – which holds 23.8 million tonnes at 2.02% Cu, 0.25 g/t Au, 25.3 g/t Ag.
Expectations for the other two plays are high based on strong historic rock chip results, with Paradise Well being shown to hold 8.9% Cu and 2.2 g/t Au in rock chips, while Silver Valley has shown rock chips featuring 554 g/t Ag, 20% Pb and 11.9% Cu.
Litchfield managing director and CEO, Matthew Pustahya said the company had responded quickly to the opportunity offered by this package, given the current market cycle.
“The last time this portfolio changed hands it commanded a significantly higher price, despite minimal additional exploration work being conducted since then,” he said.
“The opportunity at the Oonagalabi Project and the broader portfolio presents a fantastic
prospect for Litchfield Minerals to significantly expand our footprint in the Northern
Territory’s base and precious metals sector.
“The acquisition of this asset package not only aligns with our strategic emphasis on copper, base metals and gold but also demonstrates our ability to secure high-value prospects for extraordinary value.”
Litchfield shares have remained flat on the news, trading at 12.5 cents.
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