Artemis Resources has set its sights on becoming one of the largest landholders in the highly prospective Paterson Province, Western Australia, with the acquisition of further gold-copper projects in the region.
The junior is targeting the acquisition of privately-owned Rincon Resources – co-founded by well-known geologist Zeffron Reeves – which owns the South Telfer Project some 12km from Newcrest’s giant Telfer mine (+25M oz gold).
Newcrest previously explored the project area, identifying outcropping mineralisation at the Hasties prospect and large gold anomalies at Westin.
At Hasties, Newcrest previously carried out a 200-hole drilling campaign for 22,000 metres at South Telfer returning high-grade gold and copper results including 57.80m at 2.05 grams per tonne gold from 17.40m including 16.10m at 4.75 grams per tonne gold from 42.70m and 10.90m at 3.39% copper from 91.80m.
However, follow-up work at Hasties and Westin hasn’t been followed-up since Newcrest dropped the tenement holdings in 2002 to focus on underground mining at Telfer.
Importantly, the acquisition adds 708 square kilometres of new tenements, over doubling the company’s landholding in Paterson Province to 1,140 square kilometres.
“The acquisition of Rincon is a significant win for Artemis Resources shareholders, making the Company one of the largest land holders in the Paterson Province,” Artemis Resources’ Non-Executive Chairman Sheik Maktoum said.
“At completion, Artemis gains a significant increase in scale and a simplified Paterson operation all within close proximity to some of the region’s largest miners.
“Telfer South is an exceptional prospect with mineralised intercepts of gold and copper from surface and offers a compelling target to increase the value of the Artemis’ suite of Patersons Province assets. The other projects within Rincon also include quality assets which may provide value propositions for sale, JV or exploration.”
Artemis Resources Executive Director Ed Mead said the South Telfer held tremendous opportunity.
“The tenure was dropped by Newcrest in 2002 when the Telfer mine was closed and subject to a feasibility of the underground mine,” he said.
“Artemis considers this land to hold tremendous opportunity – especially as the Newcrest mine is slowing down and may be looking for new nearby ore-sources. Structural targeting will be completed once all datasets are consolidated, utilising the significant and quality data available.”
Acquisition consideration is A$2.7m of Artemis shares plus performance payments and is subject to due diligence, acceptances from 90% of Rincon shareholders and approvals from Artemis shareholders.
Once completed, Mr Reeves will be appointed to the Artemis board as a Non-Executive director
Investors welcomed the acquisition with the stock gaining as much as 0.5c or 14% to 3.5c on Tuesday.