Chase Mining Corporation Ltd (ASX:CML) acquisition target Green Critical Minerals Ltd (GCM) has fast-tracked exploration at Marlin prospect within the high purity McIntosh Graphite Project in Western Australia.
The company signed a "transformational" conditional agreement last week to acquire GCM, which holds the earn-in rights for up to 80% of the McIntosh Project, Australia's third-largest ASX-listed graphite project.
Subsequently, Chase has approved the pre-funding of $150,000 to GCM in order to fast-track the Marlin drill program.
Upon approval of the pre-funding, GCM has proceeded to move the project forward, having put in place all the requirements to begin the drill program as soon as the acquisition is finalised in September.
Furthermore, the company is planning a maiden exploration drill program in September at the high-priority Marlin prospect.
Marlin prospect
The Marlin prospect is the largest exploration target on the tenement package, having a mineral exploration target of 30-60 million tonnes at 2-5% total graphite content which is multiples larger than the company’s flagship Emperor deposit.
Importantly, despite having large flakes frequently observed in outcropping samples, the Marlin prospect was not drill tested by previous proponents as Native Title agreements were not in place.
These agreements were received in June of 2019, some nine months after the last drill program was completed at the McIntosh project (for any mineral).
GCM views Marlin as a potentially large and exciting walk-up target, which has the potential to add significant development tonnes to the existing resource.
Pre-funding approved
The pre-funding will allow GCM to hit the ground running prior to the approval of the acquisition.
If the acquisition of GCM is not approved by CML shareholders these pre-funds will be refunded in full to CML.
Forward plan
Following the execution of the pre-funding agreement GCM immediately engaged MEC Mining to manage its 2022 exploration program.
Exploration activities that began on July 19 include:
- Heritage surveys for access and drilling activities at Marlin and Marlin West exploration prospects.
- Geological mapping to confirm graphite outcropping at Marlin and Marlin West and assist with planning final drill-hole locations.
- Review and confirmation of aeromagnetic responses to confirm the breadth and depth of drilling activities.
- Aerial support to plan the safest and most efficient access to the exploration prospect sites. Exploration drilling which is due to commence in September will focus on the Marlin prospect.
The company will conduct a three-week reverse circulation (RC) program designed to confirm the resource size and total graphite content at Marlin.
It’s also anticipated that insights into flake sizing will be demonstrated and if these prove to be promising a follow-up diamond drilling program will be prioritised.