Forge announces McLaren Maiden

THE BOURSE WHISPERER: Forge Resources has announced a maiden JORC compliant heavy mineral (HM) resource estimate for the McLaren heavy mineral sand deposit, situated within the company’s Eulca West mineral sand project tenements, located in the Eucla Basin Western Australia.

 

The Eucla West mineral sand project location. Source: Company announcement

The resource estimate for the McLaren deposit has come in at 470 million tonnes at 4.6 per cent heavy minerals for 21.5 million tonnes of contained HM.

The Eucla West project is made up of three contiguous granted exploration licences located approximately 45 kilometres west of the Balladonia roadhouse, on the Eyre Highway in Western Australia.

According to Forge the project was proven to host significant heavy mineral sand (HMS) occurrences in 2009 as a result of wide spaced reconnaissance drilling.

In September last year Forge agreed to enter into a Farm-in agreement that gave it the right to earn 50.1 per cent of the project by spending $2.0 million within two years.

Forge can either elect to earn a further 28.9 per cent (total 80 per cent) by spending a further $4 million over a further three year period, or acquire the project outright with a payment of $7.5 million and the grant of a 1.5 per cent gross sales royalty.

Since the announcement of the Farm-in Forge has completed a program of 212 aircore drill holes to define the deposit.

“The maiden JORC compliant McLaren heavy mineral deposit Resource is now defined at a 500 metre by 200 metre drill spacing over approximately six kilometre strike length, and significantly the deposit is at, or near, surface and remains open to further extensions to the north,” Forge Resources said in its ASX announcement.

“The deposit is contained within three contiguous tenements, which cover an area of approximately 218 square kilometres.”