Phosphate Australia acquires Murchison gold project
THE BOURSE WHISPERER: The commodity focus of Phosphate Australia has shifted following the company’s acquisition of 100% of the historic Tuckanarra gold project in the gold producing Murchison district of Western Australia.
Under the terms of the acquisition agreement with vendor Gold and Mineral Resources, Phosphate Australia will pay consideration for 100% of the Tuckanarra project comprising one million of its shares and A$45,000 cash.
There are no outstanding royalty commitments included in the deal.
In an announcement to the Australian Securities Exchange, Phosphate Australia said the acquisition of the Tuckanarra gold project repositions the company as a serious gold explorer.
The company’s wholly-owned 56 million tonnes at 16 per cent phosphate Highland Plains phosphate project in the Northern Territory will remain within the company until it can find a strategic partner to assist in its development.
Phosphate Australia said it will continue to actively promote Highland Plains.
The Tuckanarra acquisition includes almost all of the historic workings and four open pits at the project, all of which produced a total of around 95,000 ounces up to 1995.
The project consists of three exploration tenements and eight prospecting tenements, with a combined area of 270.4 square kilometres.
The permits are all currently in application. Phosphate Australia said it anticipates the main tenements will be granted by mid-October.
Heritage agreements have already been signed with the traditional owner claimant group for the area.
The project area is a historic goldfield dating back to 1900. During this time production was approximately 30,000 ounces at a grade just over one ounce per tonne.
The company said historic follow up work in the area appears underdone yet potential exists for it to build on existing prospects and discover new ones.
Tuckanarra is situated centrally within the Murchison goldfield with the Great Northern Highway running through the project area.
Nearby existing gold plants at Burnakura, Bluebird, Cue and Mount Magnet opening up possibilities for toll treatment.
“There are a number of highly prospective targets for immediate follow up, which include existing areas of known shallow mineralisation, undrilled targets based on geophysics and/or geochemistry, on strike extensions to existing pits and en-echelon structures parallel to existing pits and deeper targets under existing pits,” Phosphate Australia said.
Phosphate Australia is currently planning a program of drill holes and will be submitting an application with the Department of Mines to drill Tuckanarra as soon as the core tenements are granted.
The company is anticipating these to be granted around mid-October, after which a Phase 1 drilling program will be carried out through November to December.
The company expects this will lead to increased drilling activity in 2012 with an initial resource estimate aimed for by May 2012.