Trek Metals in gold, iron ore buy

Trek Metals has expanded its exploration efforts in the Pilbara after signing separate agreements to acquire gold and iron ore tenements, close to the company’s Pincunah project.

Trek is buying the Tambourah tenement package from private companies Redstone Metals and Territory Prospecting, which covers 290 square kilometres within the Western Shaw Greenstone Belt and sits 50 kilometres south of Trek's Pincunah gold-copper project.

The tenements are also close to Kairos Minerals’ Mt York gold project and Pilbara Minerals’ Pilgangoora-Altura lithium project.

Trek says Tambourah is considered highly prospective for gold deposits, with at least 13 known gold occurrences and old mining workings on the project.

Exploration to date includes work from Atlas Iron and junior De Grey Mining, with the latter having focussed largely on copper and base metals.

Trek executive director John Young said the deal enhanced the company’s exploration pipeline.

“This represents an exciting low-cost, low-risk opportunity for Trek Metals to further enhance our pipeline of gold exploration targets in the Pilbara and at the same time review a highly prospective iron ore opportunity at a time of renewed interest in the iron ore sector,” he said.

Trek will pay $50,000 to the joint vendors, as well as issue 750,000 company shares and grant a 1 per cent net smelter return royalty.

Further, Trek has options to acquire two additional licences, one one of which is in a ballot with two other companies. Trek has also submitted an application for a fourth licence.

The company was trading at 6.9 cents at 2:23pm AEDT, down 1.4 per cent.