Goodrich Resources takes control of Zodiac

THE BOURSE WHISPERER: Goodrich Resources has expanded its project portfolio following the acquisition of a 52 per cent interest in unlisted exploration play Zodiac Resources.

Goodrich said the acquisition complements its already substantial exploration ground in central New South Wales and presents the company synergies to ongoing exploration and potential development activities.

The acquisition brings with it the project portfolio of Zodiac, which includes exploration licences covering 447 square kilometres in the Lachlan Orogen metallogenic province of NSW.

 

Location of Zodiac projects in relation to nearby Goodrich projects in NSW. Source: Company announcement

 

The main project is the Yeoval project, which includes a JORC-compliant Inferred Resource of 12.9 million tonnes at 0.38 per cent copper, 0.14 grams per tonne gold, 2.2 grams per tonne silver, and 120 parts per million molybdenum.

The Wilga Downs project measures approximately 300sqkm and is in a good neighbourhood sitting close to the Northparkes copper-gold mine of global mining house Rio Tinto and the Tomingley gold project of Alkane Resources.

The package also includes the additional projects of the Yarrowitch diamond mine in NSW and the Troy Creek copper-gold project in Western Australia.

 “This acquisition provides Goodrich with a strong strategic tenement position in the vicinity of significant producers,” Goodrich Resources chairman Alex Alexander said in the company’s announcement to the Australian Securities Exchange.

“It delivers exploration targets having significant potential for mineral discovery, one of which is next door to one of our current projects.”

Zodiac was controlled by Alexander and related parties, who transferred the 52 per cent stake to Goodrich for no consideration.