THE BOURSE WHISPERER: YTC Resources (ASX: YTC) has reached an agreement with Straits Resources (ASX: SRQ) to acquire 100 per cent of the Doradilla project in north-western New South Wales.
Prior to the Agreement, YTC had been earning an initial 70 per cent in the Doradilla project from Straits Resources through sole funding exploration expenditure of $1.5 million by 18 December 2012.
The funding was part of an Exploration Joint Venture Agreement from 2007 between YTC and Templar Resources, a 100 per cent-owned subsidiary of Straits Resources.
Project location plan. Source: Company announcement
Under the new agreement, YTC will acquire 100 per cent of the Doradilla project tenement in consideration for the issue of $250,000 worth of YTC fully paid ordinary shares at a deemed price of 28.6 cents per share.
At the date of the agreement, YTC had sole funded approximately $1.25 million of exploration expenditure.
The company recently completed a 1,830 metre aircore drilling program on the tenement.
The Doradilla Project lies approximately 50km south-east of Bourke, NSW, and hosts a 16 kilometre long tin-mineralised skarn referred to as the DMK Line, which hosts the tin-skarn deposits of Doradilla, Midway and 3KEL.
“Historical exploration has concentrated on the primary zones of Doradilla, Midway and 3KEL, with YTC more focused on the oxide deposits,” YTC Resources said in its ASX announcement.
“All previous exploration has highlighted the large scale of the mineralisation.”
Some of the stronger results from historic and YTC drilling include:
– 6 metres at 1.16 per cent tin and 0.11 per cent copper;
– 7m at 1.2 per cent tin (deepest hole into Doradilla deposit);
– 38m at 0.53 per cent tin (Doradilla Oxide Zone); and
– 1.5m at 683 grams per tonne silver and 1.2 per cent bismuth.
– 40m at 1.5 per cent tin, 0.52 per cent copper, 110 parts per million indium and 0.35 per cent zinc, including 18m at 3.04 per cent tin, 0.85 per cent copper, 230ppm indium and 0.73 per cent zinc; and
– 42m at 1.32 per cent tin, 40ppm indium, 0.23 per cent Zn and 0.18 per cent bismuth, including 10m at 4.44 per cent tin and 106ppm indium and 0.1 per cent bismuth.
– 5.5m at 0.36 per cent tungsten trioxide.
In 2008 YTC completed an aircore drilling program at 3KEL that was able to validate previous drilling and allow for the estimation of a JORC-compliant Inferred Mineral Resource for the oxide zones at Midway-3KEL of 7.8 million tonnes at 0.29 per cent tin.
The deposits also contain potentially economic levels of copper, zinc and indium which were not included in the Resource estimate.
YTC has also completed a metallurgical program on the 3KEL oxide material, which suggested tin-fuming was a potentially viable process available to extract the tin.