Midas Minerals Ltd has inked an option agreement with Carnavale Resources Ltd (ASX:CAV) to purchase the 48-square-kilometre Barracuda nickel-copper-platinum group element (PGE) project (licence E58/551) in Western Australia, host to part of the Wondinong PGE target zone which also shares ground with Midas’ Challa Project.
The Barracuda project represents the western portion of the 17-kilometre-long Wondinong PGE target zone, and has previously returned PGE mineralisation up to 3.45g/t.
Exploration in the 1980s reported anomalous platinum, palladium, and rhodium (all PGEs) over 17 kilometres of strike in the large Windimurra Igneous Complex (WIC).
Midas’ own exploration efforts at the nearby Challa Project have revealed strong PGE and base metal-related geochemical and versatile time domain electromagnetic (VTEM) geophysical anomalies.
Large PGE-prospective complex
“It is good to have secured the entire Wondinong PGE target zone prior to the commencement of planned drilling at Challa later this year,” Midas Minerals managing director Mark Calderwood said.
“Midas’ ongoing exploration at Challa has focused on infill geochemical sampling and prioritisation of 2021 VTEM geophysical anomalies.
“Midas will extend its geochemical sampling over E58/551 with the aim to better define drill targets over known PGE mineralisation at Wondinong.”
Location of the Wondinong PGE target zone in relation to the Challa project and E59/551.
Option agreement terms
Midas’ binding head of agreement for the Barracuda acquisition concerns Carnavale’s subsidiary Tojo Resources Pty Ltd.
The material terms of the agreement are as follows:
- Midas will pay $20,000 for the initial 12-month option period;
- Midas will pay a further $20,000 on the first and second anniversary, if it elects to extend the option term;
- exercise of the option is conditional on completion of due diligence on E58/551 to the satisfaction of Midas and obtaining all other necessary third-party consents and approvals (including in relation to the existing royalty related to E58/551);
- Midas can exercise the option with payment of $300,000, which Midas can elect to satisfy in Midas shares at a deemed issue price of the five-trading day volume weighted average price of Midas shares immediately prior to the exercise of the option;
- Midas will pay a further $500,000 on completing a JORC compliant mineral resource within the tenement area;
- CAV will receive a 0.5% net smelter return (NSR) and Midas will assume responsibility for an existing 0.5% NSR to third parties; and
- Midas can withdraw at any time after the initial option fee is paid.
About Midas Minerals
Midas Minerals is a junior mineral explorer based in Western Australia with a primary focus on lithium and gold, although its projects are also prospective for nickel, PGE, copper and silver.
The company holds three projects in the Yilgarn Craton of Western Australia:
- Newington, 311 square kilometres – a recently acquired project, located at the northern end of the Southern Cross and Westonia greenstone belts, prospective for lithium and gold. ‘Significant’ lithium and gold mineralisation have been identified. Preparations for drilling are underway.
- Weebo (under an option agreement), 453 square kilometres – a tier one location within the Yandal greenstone belt between the Thunderbox and Bronzewing gold mines, prospective for gold and nickel. ‘Significant’ gold drill intercepts and gold and nickel geochemical anomalies were recently reported.
- Challa, 859 square kilometres – located over part of the large Windimurra Intrusive Complex between Mt Magnet and Sandstone. Significant palladium-platinum, gold and base metal geochemical anomalies and VTEM conductors were recently identified.
Midas Minerals Project Location Map.