Solara Minerals has secured 310 square kilometres of exploration licences in the Bryah Basin near the DeGrussa and Peak Hill mines in one of WA’s proven and prospective copper and gold districts after acquiring licensee OD4 Tom Price for $130,000 cash and 1.25 million shares. High-priority conductors at the key DeGrussa West and Wilgeena projects have not yet been tested.
Solara Minerals has entered a binding agreement to secure seven exploration licences spanning 310 square kilometres in Western Australia’s mineral-rich Bryah Basin in a deal to fully acquire licensee OD4 Tom Price Pty Ltd (OD4TP).
The acquisition targets high-potential gold and copper deposits and positions Solara near major operations, including Sandfire’s famed DeGrussa copper-gold mine and Westgold’s Peak Hill gold mine.
The deal is valued at $130,000 cash and 1.25 million Solara shares, with up to 1.5 million deferred shares contingent on drilling success and will strengthen Solara’s foothold in a proven mining region.
The transaction involves a consideration of $130,000 - after a $20,000 exclusivity fee - and the issue of 1.25 million fully paid ordinary shares upon completion, expected by late July.
An additional 1.5 million shares may be issued if Solara achieves a drilled intersection of at least 20 copper equivalent x metres at a 0.5 per cent copper equivalent cut-off grade within three years, reported to the ASX under JORC standards.
Both share issues are subject to a six-month voluntary escrow. Completion hinges on due diligence, OD4TP having no liabilities, minority shareholder agreements and necessary approvals, with all transactions occurring simultaneously.
The portfolio includes four key projects in the Bryah Basin, 50-150 kilometres north of Meekatharra, which are known for hosting significant gold and copper-gold deposits: Degrussa West, Wilgeena, Mikhaburra and Karalundi.
Commenting on the acquisition, Solara Minerals executive director Tony Rovira said: “We’re delighted to have secured these exciting projects where historical exploration results and prospective underlying geology indicate strong gold and copper mineralisation potential. They are located in the highly productive Murchison region, which has a historical gold production endowment of more than 35 million ounces and where numerous gold mines are currently operating.”
Rovira said the acquisition exposes shareholders to one of WA’s hottest gold exploration districts and will allow the company to test targets prospective for analogues of the DeGrussa and Monty copper-gold deposits.
He said the move aligns with Solara’s business model to identify and assess new acquisitions and investments with a focus on exploration and pre-development opportunities in the gold and copper sector to drive shareholder value.
The DeGrussa West project comprises two adjoining licences enclosing 65 square kilometres, about 17km along strike from Sandfire’s famed DeGrussa mine, which has a contained resource of 13.8 million tonnes at a huge 4.8 per cent copper and 1.8 grams per tonne (g/t) gold. It is about 10km from Catalyst Metals’ Old Highway deposit, which has 206,000 ounces of gold.
In a 2009 airborne electromagnetic (EM) survey, Sandfire identified untested bedrock conductors in the DeGrussa geological sequence, which Solara has since followed up with a ground-based moving loop EM survey. Results, due soon, will guide an initial drilling program, with drill sites accessed via existing tracks.
The Wilgeena project comprises two licenses covering 52.7 square kilometres, 15km southeast of Westgold’s Peak Hill gold mine, which has a 481,000-ounce gold resource, and close to Catalyst’s Hermes South project containing a 114,000-ounce gold resource.
Historical exploration has unveiled anomalous gold and copper, with the northern half of the project remaining under-explored and ripe for follow-up mapping and drilling.
The Mikhaburra project adds a further two licences enclosing 148.8 square kilometres, while the Karalundi project brings an additional 43.4-square-kilometre licence into the mix.
Both areas enclose a chunk of the prospective Naracoota Volcanics and the Karalundi Formation, which have proven their potential by hosting regionally significant deposits.
Additionally, Karalundi features untested EM conductors, and Solara plans to review Sandfire’s old drilling data to prioritise targets.
Solara expects the acquisition will enhance its exploration pipeline in a region with excellent infrastructure and proven mineralisation.
By combining historical data and modern geophysics, Solara aims to unlock value through targeted drilling, starting with its Degrussa West project, while also systematically exploring the Wilgeena, Mikhaburra, and Karalundi projects for their gold and copper potential.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
