Cyclone Metals has acquired six exploration projects in New Zealand covering gold, copper, nickel and platinum group elements. Highlights include the Muirs project containing 222,000 ounces of gold near the 45 million ounce Hauraki gold field. At the Mareburn project drill hits include 10m at 2.4 g/t gold and it is only 8km from the 10-million-ounce Macraes gold mine.
Cyclone has agreed to a takeover of Grand Port Resources’ portfolio of highly prospective gold, copper, nickel and platinum group element tenements. The deal includes six existing projects and two lithium and REE project applications covering over 1,140 square km of ground.
The terms agreed to was the issue of 900,000,000 Cyclone shares to Grand Port or its nominees. The purchase remains conditional upon shareholder approval, due diligence and a green light from the New Zealand government. Grand Port will also have the right to nominate one person to the board of directors of Cyclone.
Cyclone aims to also raise $500,000 through a share placement to fund exploration work at its new acquisition.
Projects in the takeover deal include the Muirs project containing 222,000 ounces of gold near the 45M ounce Hauraki gold field on New Zealand’s North Island. The gold field has over 50 known gold-silver epithermal deposits.
Historic drill results at Muirs include 11m at 11 g/t gold, 14m grading 2.76 g/t and 12m with 2.36 g/t gold. The non-JORC resource estimate is 222,000 ounces of gold at a grade of 1.34 g/t. Silver was not estimated however the history of epithermal deposits in the area indicates it is likely to be significant.
The Muirs project is drill ready and Cyclone intend to undertake early drilling to enable calculation of a JORC compliant gold resource.
The remaining five projects are on New Zealand’s South Island. At the Mareburn project drill hits include 10m at 2.4 g/t gold, 6m grading 3 g/t and 2m with 3.04 g/t gold. Mareburn is only 8km from the 10-million-ounce Macraes gold mine, the highest gold producer in New Zealand.
The Mareburn South project covers 434 square km and adjoins the mighty Macraes gold mine to the south. The company is keen to get on the ground at Mareburn South where no modern exploration or drilling has been undertaken.
Cyclone aims to kick off a geochemical sampling programme at the Longwood Range gold-copper-platinum group element project near Invercargill. Historic production includes 88,000 ounces of gold and 1,500 ounces of platinum. Previous drilling intersected a platinum group element reef and the company says it has been identified as prospective for copper and nickel by Otago University. A fresh drilling campaign is intended to follow results from the geochemical programme.
The Drybread and Waikerikeri gold projects in Central Otago contain alluvial gold workings, however there has been limited hard rock exploration.
Cyclone Metals is an ASX listed mineral development and investment company. It has interests in several exploration and mining projects and companies, providing exposure to copper, gold, iron ore, lithium, rare earths, uranium and lead-silver-zinc assets in Australia, Europe, Africa and South America.
Cyclone has a strategy to acquire and invest in undervalued mineral assets and companies. It aims to improve its acquistions value through hands-on management, exploration, evaluation and development.
In August 2021 Cyclone purchased the Nickol River Gold project only 10km from Karratha in the Pilbara. Early work located found gold aplenty with gold nuggets in the first test pit.
New Zealand is considered a premier resource investment destination by the company. Exploration success and new mines being approved add to its appeal.
Cyclone believes it can add significant value to the New Zealand portfolio. With the acquisition, the latest in a line of strategic investments, Cyclone will no doubt be eager to get boots on the ground to see just what sort of treasure trove its new projects are hiding.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
