Aldoro Resources Adds Penny South Gold to Portfolio Potential

THE BOURSE WHISPERER: Aldoro Resources (ASX: ARN) emerged from a self-imposed trading halt to inform the market of its impending 100 per cent acquisition of Altilium Metals Limited.

Aldoro has entered into a binding term sheet for the option to acquire Altilium Metals by paying a $50,000 option fee to secure the exclusive option to acquire 100 per cent of the issued share capital of Altilium.

If the company goes ahead with exercising this option it will then issue Altilium shareholders a total of 10.8 million fully paid ordinary shares to acquire all outstanding shares in the target company at a deemed price of 15 cents per share.

Subsequently Caedmon Marriott and Rhod Grivas will join the board of Aldoro Resources on completion of the acquisition.

“We are extremely pleased to reach agreement for the acquisition of Altilium Metals,” Aldoro Resources chairman Jeremy King said in the company’s announcement to the Australian Securities Exchange.

“The addition of their exciting exploration assets, including the Penny South gold project, greatly enhances Aldoro’s existing portfolio and builds on our long-term strategy of creating a significant Western Australian exploration and development company.

“We look forward to welcoming Caedmon Marriott and Rhod Grivas to Aldoro’s board, the experience they bring will greatly assist Aldoro going forward.”

Aldoro’s purchase of Altilium comes with a series of advanced exploration projects consisting five Exploration Licences and two Exploration Licence Applications in the Murchison Region of Western Australia.

Of particular interest is the inclusion of the Penny South gold project sitting within in the Youanmi Gold Mining District and the multicommodity Narndee Project Area.

Keeping things simple for those of us with a limited sense of direction, the Penny South gold project lies directly to the south of the Penny West gold project owned by Spectrum Metals (ASX: SPX).

Penny South contains over 2.5 kilometres of strike extension of the Penny West Shear, that hosts the historic high-grade Penny West gold mine.

Historic drilling within one of the tenements, E57/1045 encountered various anomalous intersections of gold mineralisation including: 2 metres at 33.98 grams per tonne gold, 6m at 1.27g/t gold and 5m at 1.11g/t gold.

The tenement in question is similar to the Penny West area, in that it contains limited outcrop and is overlain by one metre to 30m of sand and sedimentary cover.

The average depth of historic drilling within the Penny South gold project is less than 40m down hole.

Spectrum has reported recent exploration success at Penny North and at the southern end of the Penny West pit within deeper drill holes beneath cover.

Aldoro has flagged its intentions to utilise a similar exploration strategy to test surface anomalies at depth.

Elsewhwere within the acquisition sits the Narndee Project Area.

The Narndee Project Area holds two exploration projects that are differentiated by different styles of geology, surrounding the Narndee Igneous Complex (nickel-copper-PGM) and the Kiabye Greenstone Belt (gold).

The Narndee Igneous Complex is a large layered mafic-ultramafic complex covering approximately 700 square kilometres where historic exploration has mainly focused on PGM mineralisation using a Bushveld model, however drilling has encountered indications of nickel-copper sulphide mineralisation.

Previous explorer, Maximus Resources flew an airborne EM survey over the complex in 2008 that identified multiple EM targets, but that company only conducted limited follow up work.

Aldoro has flagged it intends to build on this historical information, including multiple geophysical datasets, expressing excitement generated by the nickel potential of the project.

The Kiabye Greenstone Belt wraps around the western side of the Narndee Complex, predominantly formed of Norie Group amphibolite-metabasalt and Yaloginda metasedimentary units, with a sheared contact against the surrounding Tuckanarra Suite granite.

The greenstone belt extends for over 30km of strike and is historically underexplored due to thin one metre to 5m cover.

Anomalous indications of gold have been identified along the length of the belt in historic work.

 

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