Critical Resources Ltd (ASX:CRR) continued to make progress across its multi-element project portfolio during the December quarter.
Over the last three months of the year, the company explored its flagship Halls Peak base and precious metals project, intersecting massive sulphide mineralisation in the first, second and fourth drill holes.
The company also dotted the I’s and crossed the T’s on a key acquisition, bringing the Mavis Lake Lithium Project in Ontario, Canada, under its wing post-quarter-end.
Discussions also advanced on Critical’s Sohar Block 4 and 5 copper project in the Sultanate of Oman, where the company is in talks with the government to renew its Block 4 licence.
Critical Resources had $4.75 million in the coffers at year’s end to advance its exploration and development opportunities.
Exploration at Halls Peak
Much of Critical’s work in the December quarter revolved around the Halls Peak Project in north-eastern NSW.
This asset comprises two granted exploration licences covering around 84 square kilometres.
The Halls Peak project area contains several known occurrences of base metals rich in zinc and lead with varying associated levels of copper, silver and gold.
An additional 839 square kilometres of tenure has been applied for across three leases, which remain at an application stage.
A drill program commenced in December 2021, comprising holes at the Gibsons prospect and covering roughly 2,500 metres.
Looking ahead, three holes, for roughly 1,700 metres, will be drilled at the Sunnyside prospect once final approvals have been received.
Ultimately, these holes are designed to confirm near-surface mineralisation and deeper targets to a maximum depth of up to 500 metres at Gibsons and 700 metres at Sunnyside.
During the campaign, Critical encountered massive sulphide mineralisation in the first diamond drill hole at Gibsons.
The following massive sulphide intervals were intersected in the first 20 metres downhole: -
- 6.4 to 7.4 metres (45% shale);
- 10.75 to 11.60 metres (10% shale); and
- 13.3 to 17.1 metres (14% shale).
The second drill hole at Gibsons intersected massive sulphide mineralisation with a 5.3-metre mineralised zone, containing 3.8 metres of massive sulphide in four intervals.
Meanwhile, the fourth hole intersected massive sulphide in a variably mineralised zone from 51 to 58.18 metres downhole.
Sohar Copper Project
Outside Australia, work also progressed at Critical’s Sohar copper play.
The company holds a 51% interest in Block 4 (a granted exploration licence), a 65% interest in Block 5 (a licence and two mining lease applications) and a 70% interest in two exploration licence applications near Block 10, to the west of Blocks 4 and 5.
Overall, the tenements cover 1,006 square kilometres across the copper-rich Ophiolite belt, which is proven to host clusters of relatively high grade volcanogenic-hosted massive sulphide (VHMS) copper deposits.
Promisingly, ores within these deposits are metallurgically simple and also contain gold and silver credits.
Critical continues to negotiate what it considers “onerous and unreasonable” fees tied to the renewal of Block 4 with the Oman Government.
In the meantime, the company’s Block 5 assets are unaffected by the discussions and Critical’s geologists and external consultants are actively completing on-ground exploration work.
Areas have been delineated for future work programs based on aerial magnetics and ground checking on previously unexplored areas, while joint venture and commercialisation opportunities are still on the table.
Corporate activities
During the December quarter, Critical raised $4 million in a placement, issuing just under 138 million shares post-quarter end.
A 100% options exercise brought in a further $800,000 over the period.
In mid-November, CEO Alex Biggs joined the Critical board as managing director while Jeremy Whybrow resigned from his post as non-executive director on the same day.
Experienced lithium executive Alex Cheeseman has since taken his place on the board.