Australian Silica Quartz (ASQ) Group Limited has signed an agreement to acquire tenements and rights from Netley Minerals Pty Ltd.
Through the agreement, ASQ will purchase two granted exploration licences (E77/2645 & E77/2675), one application exploration licence (E77/2912) and the gold rights to a further granted exploration license (E77/2644), located 350 kilometres east of Perth, Western Australia
Under the terms of the acquisition agreement ASQ will pay a non-refundable sum of $50,000 cash, issue 5,000,000 fully paid ordinary ASQ shares, and Performance Shares to a value of $500,000 upon the announcement of 50,000 ounces of gold or gold equivalent in each of up to three minerals (being gold, lithium, copper or nickel) – a maximum issue of $1,500,000, and a 1 per cent net smelter royalty in respect of any minerals mined.
Completion of the acquisition is subject to a 14-day due diligence period, and board approval prior to the cash payment, and the Shares and Performance Shares will be issued following regulatory approvals including ASX Listing rules and shareholder approval to be completed prior to 21 November 2022.
The acquisition tenements and gold rights ground will complement ASQ’s existing leases consisting of one granted exploration licence (E77/2684) and one application exploration licence (E77/2941) and collectively form the Koolyanobbing Metals Project (KMP).
Total KMP lease areas will be 204km2 of granted tenure and 112km2 in application with the gold rights to a further 201km2.
ASQ considers the Project underexplored and prospective for lithium, gold, nickel and copper. Preliminary target generation has been completed, identifying numerous gold, lithium, nickel and copper targets for follow-up.
A large swarm of outcropping pegmatites has been identified over a strike of 6km with associated lithium pathfinder elements anomaly and limited subsequent work completed extending the potential strike over 17km.
ASQ’s planned exploration entails:
- Extensive soil sampling to cover the Golden Wishbone Gold Trend
- Systematic outcrop sampling and mapping of the Seabrook Pegmatite swarm with the aim of discovering the presence of spodumene mineralisation
- Soil sampling and lithium suite assaying to better define LCT pegmatite drill targets undercover within the existing Rb anomaly
- Ground EM surveying to better define the existing AEM anomalies
- Program planning for ground EM and drill testing of the Island Gossan Cu target
