THE BOURSE WHISPERER: Jameson Resources has entered into a sale and option agreement with Saturn Minerals to acquire an initial 10 per cent interest, with an option to earn up to a further 50 per cent interest, in the Red Earth coal project located in eastern Saskatchewan, Canada.
The Acquisition is being carried out through Jameson’s wholly owned Canadian subsidiary NWP Coal Canada.
“The Red Earth project lies in an area where new coal discoveries have occurred since 2008 as first reported by Goldsource Mines at their large Border project,” Jameson Resources said in its announcement to the ASX.
“Coal finds reported by Goldsource, Saturn and others in the region are typically relatively thick seams of sub-bituminous coal.”
Source: Company announcement
Initial exploration carried out by Saturn over the Red Earth project area has identified a number of targets that Jameson said display similar characteristics to the existing Manville Group coal discoveries in the region.
“This agreement represents an excellent opportunity for both companies,” Jameson continued.
“Jameson gains entry into an exciting new coal region with as yet unbounded potential, while Saturn retains an ownership and royalty interest in the Red Earth project and benefits from Jameson’s exploration activities.”
The Red Earth project comprises six granted Coal Prospecting Permits covering 4,608 hectares made up predominantly of farmland.
It is located approximately 30 kilometres from the town of Carrot River, Saskatchewan, approximately 25 kilometres from rail and immediately adjacent to paved provincial Highway 55.
The Red Earth Project was acquired by Saturn, which has completed over 241 line-km of airborne GeoTEM and 744 line-km of airborne gravity survey over the property to assess coal exploration potential with respect to through-faulting and karstification-related geological settings favourable for development of long-lasting coal-forming paleo-environments.
These airborne surveys have identified several geophysical anomalies on the project property that Jameson considers to indicate advanced exploration is merited, including drilling.
Jameson will be preparing a first phase exploratory program for the Red Earth project to test these anomalies during the coming exploration season.