TNT Mines has exploded onto the gold scene in Western Australia acquiring privateer Warriedar Mining along with its two strategic goldfields projects and its well-credentialed chairman, Alex Hewlett. Hewlett shot to fame on the back of his recent success with Spectrum Metals.
TNT Mines has exploded onto the gold scene in Western Australia acquiring privateer Warriedar Mining along with its two strategic goldfields projects and its well-credentialed chairman, Alex Hewlett. Hewlett shot to fame on the back of his recent success with aspiring gold producer Spectrum Metals which was picked up by Ramelius for more than $210 million.
The purchase of Warriedar Mining delivers two well-placed gold projects into TNT’s diversified portfolio with the company’s recent exploration efforts being focused on the historic high-grade uranium fields of Utah in the United States.
Warriedar’s flagship asset is the Eureka gold project which covers an enviable position just 50km north of Kalgoorlie adjacent to Bardoc Gold’s developing mining operations. Bardoc is currently developing the multi-million tonne Zoroastrian and Excelsior open pits located less than 2km to the east of Eureka.
The Eureka project consists of four granted mining leases and one prospecting lease that covers over 7km of the auriferous Eureka shear. The tenure also hosts a resource below the established Eureka open pit.
The Eureka pit was last mined in 2018 by Tyranna Resources for around 53,000 tonnes of ore. The open pit was developed along 300m of strike and to a depth of around 120m with mining targeting a well-developed shear zone hosting quartz-carbonate and sulphide mineralisation that runs at around 3.3 g/t gold. This shear zone is up to 20m wide and extends along strike and at depth.
Ongoing exploration and modelling demonstrate a sizable resource remains in situ below the existing open pit and also hosts a number of high-grade shoots which extend to depth. The shoots remain unconstrained by drilling which has only tested the deposit to around 250m below surface. These high-grade shoots are poorly defined, however, intercepts below the pit include 10m at 5.9 g/t gold and 14m at 4.6 g/t gold – targets worthy of follow up drilling.
TNT’s resource inventory at Eureka currently sits at a respectable 762,000 tonnes at 1.8 g/t gold. However, with gold once again tracking towards US$2,000 an ounce, the mineralisation open in all directions and a bevy of hungry gold milling operations in the Kalgoorlie region, The Eureka deposit is practically begging to feel the hard edge of a drill bit and spark a renewed development program across the project area.
The second asset in the Warriedar portfolio is its namesake project 50km northwest of the Paynes Find gold mining centre, 420km northeast of Perth. This portion of the acquisition sees the company joining a growing band of explorers venturing into WA’s resurgent Murchison goldfield. Already mining the scene are the likes of Silver Lake, Westgold and Ramelius whilst Terrain, Emu and White Cliff are the more recent entrants to join the fray in the hunt for gold across this famous field.
The Warriedar gold project covers around 45 square kilometres of this prospective terrane. Regionally, gold mineralisation is found in a number of different geological environments including high-grade quartz veins, shears and epigenetic – or late-stage - gold hosted by banded iron formations similar to that found at Ramelius’ world-class Mt Magnet operations. Mt Magnet is reported to have produced more than 6 million ounces of gold to date going back more than 100 years.
The project hosts several small-scale historical gold mines that were operated in the early 20th century and have produced around 2,900 ounces of gold, with the Ironclasp mine producing a small tonnage at an astonishing 878.15 g/t gold.
The most substantive of these operations is the “Reids Ridge” underground mine which has been exploited since 1913 with workings down to 120m below surface. Reids Ridge was still being sporadically mined until a few years ago with mine records indicating the operation produced several thousand tonnes of ore at an average grade of close to 20 g/t gold.
TNT’s initial exploration at Warriedar will focus on the delineation of high-grade mineralisation associated with these historical mining areas. With milling capacity just up the road at both Kirkalocka and Mt Magnet, anything the company finds at Warriedar might be flipped into a welcome cash-flow.
“Warriedar stands out as a unique opportunity to acquire two Western Australian gold projects with a history of production that are positioned with immediate access to infrastructure and operating gold plants.”
The acquisition, which is subject to shareholder approval, will see TNT issue 29.55 million ordinary shares and 19.75 million unlisted options to the shareholders of Warriedar Mining to acquire 100 per cent of the company and its assets.
The transaction will also see ex-Spectrum directors, Alex Hewlett and James Croser, join TNT’s board of directors whilst Warriedar’s Chief Executive Officer, geologist Matthew Boyes, will now take the helm at TNT steering the company through this next stage of development.
Mr Mitchell said:
“This presents a unique opportunity to join forces with a management team that has a very successful track record in the exploration and redevelopment of ex-production gold assets in WA. Given the outstanding value creation they delivered for Spectrum Metals shareholders, Alex and James have developed a strong and loyal following and we are excited by the possibility of recreating their Spectrum success with TNT.”
TNT looks to be building a suite of high-grade assets in both gold and uranium. The company has also rejuvenated its bank account via a recent $3 million placement and added a clique of accomplished mining executives to the board, leaving it well-positioned to jump into exploration across its highly prospective tenure.
The company has already locked in 15,000m of drilling to kick-off at Eureka before Christmas, with an initial program at Warriedar to follow soon after. With permitting for drilling at the East Canyon uranium project in Utah also proceeding, TNT appears to be hitting its straps as it charges towards a golden 2021.
Is your ASX listed company doing something interesting? Contact: email@example.com