THE BOURSE WHISPERER: Kidman Resources has acquired 100 per cent of the Home of Bullion Volcanogenic Massive Sulphide (VMS) copper and base metals deposit near Barrow Creek in the Northern Territory.
Kidman said it aims to deliver an Inferred resource estimate at Home of Bullion by the end of 2012.
Plan of Home of Bullion prospect. Source: Company announcement
Kidman completed the acquisition of the advanced and historically high-grade Home of Bullion and Prospect D deposits for a total cost of $2.5 million, comprising $1.5 million in cash and $1 million in ordinary shares.
The shares are to be issued at 22.5 cents per share with the project’s vendors to be issued with just under 4.5 million fully paid ordinary shares.
“This acquisition is a potential company maker for Kidman,” Kidman Resources executive director Shane Mele said in the company’s announcement to the Australian Securities Exchange.
“Many companies have attempted to acquire this asset over the years but have been unsuccessful for a variety of reasons.
“The Home of Bullion ore body was mined back in the 1950’s and is recorded as one of the highest grade copper ore bodies ever mined in Australia.
“Production records indicate that eight thousand tonnes of ore was mined at an average grade of 19.7 per cent copper.”
Mele said the company aims to utilise the old mine records to target new drillholes with the objective of developing a maiden resource estimate by the end of the year.
The Home Of Bullion prospect is located 350 kilometres northeast of Alice Springs.
The high-grade VMS style deposit was mined briefly in the 1950’s.
Kidman said the Main Lode measures from one to six metres wide and is 160m long open to the east and down plunge.
Best historic drilling intercepts at the project include:
– 5.3 metres at 4.8 per cent copper, 61.6 grams per tonne silver, 2 per cent zinc, 0.5 per cent lead; and
– 3.2m at 4.8 per cent copper, 71.4g/t silver, 5.3 per cent zinc, 1.8 per cent lead.