Completion Mt Wells And Maranboy Acquisition Due Diligence
Jadar Resources Limited (ASX:JDR) has completed technical due diligence for the Mt Wells and Maranboy Projects in Australia’s Northern Territory.
In early August Jadar announced the signing of a Term Sheet with private mining company Outback Metals Pty Ltd for the purchase of a portfolio of Northern Territory projects collectively referred to as the Mt Wells and Maranboy Projects which contain several Tin, Copper, Silver, Gold, Tungsten and Iron Manganese prospects.
During the course of completing the Due Diligence process, Jadar engaged independent geological consultants H&S Consultants to complete a Mineral Resource Estimate for the Mt Wells tin and copper deposit.
This is the first time a JORC-compliant resource estimation has been completed for Mt Wells.
The outcome is a Maiden Compliant maiden Mt Wells Mineral Resource Estimate: Inferred Mineral Resource Estimate of 410,00t at 0.74% Sn and 0.21% Cu for 3,000t Tin and 900t Copper metal respectively.
For the maiden mineral resource estimate H&SC also considered additional down dip material extrapolated from the Inferred Resource and supported by deeper diamond drilling as an Exploration Target. As a result, a JORC compliant Exploration Target has been generated at a 0.3% Sn cut off of: § 0.7Mt to 1Mt @ 0.44 to 1.33% Sn & 0.03 to 0.11% Cu for 3,090t to 13,300t Tin metal.
Mineralisation remains open along strike and at depth from the known mineral resource which is supported by already completed deeper diamond drilling to a depth of 250m below surface.
H&SC state that the potential quantity and grade of Sn and Cu given in the Exploration Target above is conceptual in nature, and there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
The Exploration Target estimate indicates significant potential to increase the resource at Mt Wells. The Inferred Resource extends between 140 to 180 metres from surface, dependent upon density of drill testing for individual lodes.
The Exploration Model is supported by intersections to 250 metres depth from surface. Jadar is currently planning RC and diamond drilling programmes to upgrade the Inferred Resource and Exploration Target to Indicated/Measured categories and to provide samples for metallurgical testwork.
Jadar intends to rapidly progress the Mt Wells deposit to pre-feasibility stage, whilst also assessing other tin prospects such as Rosemary and Emerald Hill, which are both located within the Mt Wells tenure, and undertake further drilling at Maranboy to determine the potential of the deposit.
Whilst further exploration and upgrading of the current resource is underway Jadar intends to obtain the appropriate approvals and funding to bring the Mt Wells project back into production as quickly as possible.
Meetings have already been held with the Northern Territory Department of Industry, Tourism and Trade to map out and execute the approvals pathway.
Early indications are that due to the tenure and approvals already in place at Mt Wells that development and production approvals may be received within a few months from application.
Bringing Mt Wells back into production will be expedited further by taking advantage of the existing infrastructure, which includes the following:
• 20-50tph gravity concentration plant – Mill building comprising crushers, rod mill, trommel, jigs, spirals and shaking tables
• Offices and three large stone buildings
• Accommodation and messing for 20 people
• Large dams for water supply and tailings storage
• Communications system and weighbridge
• Access and haul roads
• Underground workings including an adit and railway
• Water bores and water tanks
• Ore bins and conveyors Some refurbishment and expansion will be required to bring the equipment into a suitable operational condition.
Total consideration for acquisition of the Mt Wells and Maranboy Projects is A$6.5m cash (payable over 12 months) and 20 million options (at an issue price of $nil)
“The completion of the maiden JORC resource at Mt Wells has allowed Jadar to achieve a key milestone by demonstrating the resource potential at Mt Wells and a starting point for continuing to grow its technology and precious metals inventory in Australia,” Jadar Resources’ Executive Director Adrian Paul said.
“In addition to the maiden JORC mineral resource, a significant further exploration target has been identified to expand the mineral resource inventory and confidence levels at Mt Wells.
“Mt Wells is quickly becoming a very compelling development project to enable Jadar to capitalise on the shortage in the global tin market and become a long term, major Australian tin producer.”
Mt Wells is located approximately 200km south east of Darwin and 37km north east of Pine Creek, Northern Territory.
Access is by all-weather maintained roads from the Stuart Highway. Telephone services are installed at the site and a gas pipeline, powerline and train line are located approximately within 5km from the mine.
For further information please visit: https://jadar.com.au/