Critical Resources Ltd (ASX:CRR, FRA:9S70) recently highlighted strong early-stage exploration success across its newly acquired New Zealand portfolio, including exceptional tungsten grades and encouraging gold drilling results.
Managing director Tim Wither said the company had rapidly advanced its position in the Otago and Reefton regions after securing six permits, covering approximately 1,700 square kilometres. He noted that the acquisition provided low-cost exposure to an emerging gold province with a proven production history.
At the Cap Burn project, initial drilling results have supported the company’s geological model. Wither reported that several holes intersected mineralisation, including standout results of 16 metres at 3.2 grams per tonne gold and 7 metres at 3.7 grams per tonne. He said these results confirmed the presence of high-grade zones and validated the exploration approach.
In addition to gold, Critical Resources is assessing a potentially significant tungsten opportunity at the Croesus Project. Historical sampling has returned grades of up to 42.6% WO₃, with additional results of 26.6% and 19.9% WO₃. Wither described these as extremely high-grade results, noting that they could represent a valuable secondary target alongside gold.
He also pointed to favourable market conditions, stating that tungsten prices had increased dramatically over the past 12 months due to supply constraints, particularly export controls from China. This, he suggested, could enhance the strategic value of any future discovery.
Interview highlights
- Critical Resources secured six permits across New Zealand’s South Island
- Cap Burn drilling confirms high-grade gold mineralisation
- Key intercepts: 16 metres @ 3.2 grams oer ton (g/t) and 7m @ 3.7 g/t gold
- Croesus Project shows exceptional tungsten grades up to 42.6% WO₃
- Tungsten prices have surged ~600% over the past year
- Portfolio offers low-cost entry with strong exploration optionality
- Rapid mobilisation: permits approved and fieldwork commenced within days
- Ongoing exploration includes sampling, surveys, and planned drilling
- Lithium development in the US continues alongside NZ expansion
Proactive: Welcome back to Proactive Investors. I'm your host, Kerry Stevenson. Tim Wither, the Managing Director of Critical Resources, the ASX code is CRR, joins us. We've previously discussed the company’s lithium pathway in the US, but now there's a tungsten and gold project in New Zealand gaining attention. Can you tell us what’s happening and the strategy behind this asset?
Tim Wither: In August last year, we announced that we had built a significant portfolio across six tenements in the South Island of New Zealand. This gives us low-cost entry into an emerging gold province with a strong production history.
Proactive: You recently announced drilling results. What did they show?
Tim Wither: We completed 12 holes at the Cap Burn project, testing our geological model. Several holes ended in mineralisation, with highlights including 16 metres at 3.2 grams per tonne and 7 metres at 3.7 grams per tonne. This confirmed that our high-grade geological model is valid.
Proactive: Where is your focus and is the work funded?
Tim Wither: We now control six permits covering around 1,700 square kilometres. Cap Burn is an exploration permit, while others are prospecting permits. This gives us low holding costs and strong optionality. We’ve already mobilised quickly, receiving permits and commencing fieldwork within days.
Proactive: Can you explain the tungsten opportunity?
Tim Wither: Tungsten prices have increased significantly, rising around 600% over the past 12 months. At Croesus, we’ve seen historical rock chips grading up to 42.6% tungsten oxide, which is extremely high grade. This provides a second target alongside gold.
Proactive: What’s next?
Tim Wither: We’re conducting rock chip sampling and soil surveys at Lammerlaw, followed by drilling. Then we’ll move to Croesus and return to Cap Burn for follow-up drilling.
Proactive: How did you acquire these projects?
Tim Wither: They were presented to us, and we quickly recognised the geological opportunity. We secured them before increased competition and have received strong government support.
Proactive: Is your lithium project still progressing?
Tim Wither: Yes, our battery technology work with the South Dakota School of Mines is ongoing, and we expect to share updates soon.