Astro Resources NL (ASX:ARO) has secured 100% ownership of the Governor Broome Project in Western Australia after completing the acquisition of Iluka Resources Limited's 80% stake in tenement E70/5872 containing the high-grade Jack Track mineral sands deposit.
After receiving Ministerial Consent on October 14, 2021, all terms of the acquisition have been met and as such, Astro now has 100% ownership of the entire Governor Broome Project which covers 171 square kilometres.
Forward plan
Governor Broome Project – tenements and JORC resources.
It is Astro's intention to undertake exploration for the newly acquired exploration licence as part of its overall resource upgrade strategy for Governor Broome.
This includes carrying out an infill drilling program to upgrade the Jack Track resource to the indicated category and this is expected to occur early in 2022.
In line with the drilling plans, preparations will be made to secure the necessary landowner consent and other regulatory approvals.
Drilling is also planned to test lightly drilled areas to the west and south of the Jack Track deposit within R70/58.
Project resources
Astro has been in joint venture with Iluka Resources over the Jack Track tenement since 2014 with Iluka holding an 80% interest in the JV.
Since 2014 Iluka has conducted extensive exploration work, discovering the Jack Track HM deposit and defining a JORC resource of 19 million tonnes at 4.7% HM (heavy minerals).
Recently Astro and Iluka began discussions for Astro to purchase Iluka’s 80% interest in the tenement as well as Iluka’s adjacent tenement EL 70/5200, to the north of Jack Track.
Inclusive of Jack Track, Astro’s wholly-owned Governor Broome Project HM deposits total 52 million tonnes of indicated resources at 4.6% HM and 25 million tonnes of inferred resources at 4.7% HM.
East Kimberley extension
In addition, Astro has also secured an extension of the term for its East Kimberley Diamond Project Exploration Licence (E80/4120) in Western Australia.
Astro is preparing a scope of works to be undertaken at the project and is reviewing opportunities to maximise the value of this asset for its shareholders.
About the company
Astro Resources operates through three exploration segments - heavy mineral sands, diamonds and gold - but its main focus is to transform to a mineral sand developer at the Governor Broome Project in the Nannup region of Western Australia.
Governor Broome is a heavy mineral sands (HMS) project in minerals sand-rich coastal plains.
It also has the Needles Gold Project in the gold-prolific US State of Nevada and its wholly-owned Lower Smoke Creek Diamond Project southwest of Lake Argyle in Western Australia.