Strickland Metals Ltd (ASX:STK) has completed its acquisition of the Millrose Gold Project.
The Millrose Gold Deposit is in the north-eastern domain of the highly gold endowed Yandal Greenstone Belt in WA.
The Project is adjacent to STK’s Horse Well Project and Yandal East Gold Project.
The Millrose Gold Project is approximately 600km2 in size and lies roughly 30km due east of Northern Star Resources Limited’s 10m oz+ Jundee operation.
Location of the Millrose assets.
STK has acquired the project from Millrose Gold Mines Limited and Golden Eagle Mining Pty Ltd and has agreed to pay:
- $1 million cash upon signing the binding term sheet as the initial payment. Note, this has been paid.
- $5 million cash within three months of the Initial Payment which has also been paid.
- $4 million within three months of the Second Payment. This has also been paid with STK paying $2 million in cash and $2 million in Shares at an issue price of $0.0713 which represents the 20-day VWAP.
Resource increase
The acquisition increases STK’s resource base to over 600,000 ozs Au (11.72Mt@1.60g/t Au for 603,000 Au).
Strickland’s JORC 2012 compliant Mineral Resource Estimate is now as follows:
"We are very pleased to have completed the Millrose acquisition, and would like to give particular thanks to the vendors and their advisors for facilitating a seamless transaction,” STK CEO Andrew Bray said.
“Millrose was the final ‘piece of the puzzle’ for our consolidation plans on the north-east flank of the prodigious Yandal Belt. As a result of the Millrose acquisition, Strickland now controls approximately 100km of strike over the Celia Shear zone, in what appears to the one of the most underexplored parts of the belt.
“Rigs have been secured for our resource expansion program at Millrose, which will commence in January 2022. The Company is expecting to release an upgrade of the Millrose Mineral Resource within twelve months.”
The resource currently consists of a northern and southern zone with the ‘gap’ in between only defined by aircore drilling that was not included in the resource estimation.
STK is planning to undertake a systematic RC program in this ‘gap’ area, the results of which will likely feed into a resource expansion.
What’s next
STK will begin a 23,000 metre RC and diamond drill program in January 2022, which will run for at least six months as part of the Millrose resource expansion program.
The priority for future drilling at Millrose is as follows:
- Infill drilling of the ‘gap’ between the southern and northern resource domains with RC drilling. The position is prospective for both supergene and primary gold.
- Along strike extensions to the north and south as identified in the geophysical and geochemical datasets.
- Depth extensions, with a focus on the high-grade domains to understand underground mining potential.
- Further definition of extensive, near-surface laterite mineralisation.
- Parallel trends to the west of the main defined shear zone.
The program will be complemented with a Mineral Resource upgrade which is likely to comprise a significant addition to the current resource. After the resource upgrade, STK will consider the commencement of a Scoping Study for the development of the resource.