This new, 100% FTL-owned land acquisition immediately adjoins the existing land holding at the Skyline project. Pic: Getty Images
Firetail adds 63km2 of copper acreage at Skyline
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- Firetail Resources to acquire 100% of four adjoining mineral claims to the Skyline copper project
- The prospective strike horizon has increased from 16km to 25km with only 4km tested by geophysics
- A property wide airborne EM survey across the project completed with results expected in coming weeks
Special Report: Firetail Resources has acquired four mineral claims adjacent to the ground under the current YHM earn-in agreement at its Skyline copper project, increasing the total prospective strike length to over 25km.
Last month, Firetail Resources (ASX:FTL) closed the deal on the Skyline Project (formerly York Harbour), which is highly prospective for copper, zinc and silver, after completing the first milestone of the Option Agreement with York Harbour Metals. It allows the ASX listed explorer to earn up to an 80% interest.
The Skyline project covers seven mineral licenses and 189 mineral claims spanning 4725 hectares (47.25km2) in Newfoundland, a mining-friendly jurisdiction known for its rich mineral resources.
Recent work including sampling and relogging of drilling carried out by YHM has helped FTL set the foundations for an upcoming drilling campaign.
Acquisition of mineral claims
FTL has added four new mineral claims to its acreage, adjacent to the ground under the current YHM earn-in agreement, dubbed the ‘Skyline project’.
The expanded land holding hosts the same lithological horizons that contain the York Harbour VMS mine, close to drill targets and other mapped copper occurrences in the area.
Overall, FTL’s ground package has expanded from 47km2 to 11km2, providing a potential for a pathway of organic and synergistic growth, in what has been a highly prospective area to date.
The prospective strike horizon has increased from 16km to 25km with only 4km of this prospective strike tested by geophysics and 1.5km by drilling.
Two targets have already been identified from historic reports, supported by historical mapping and regional geophysics, including the mapping of 2,000ft (~600m) of sulphide seep in pillow basalts in rock exposures.
The presence of pillow basalts indicates that it was active rift margin with significant, high temperature fluid flow, a critical element to the formation of VMS style deposits.
Airborne survey underway with results expected shortly
“The opportunity to acquire further, highly prospective tenure has allowed us to extend the strike of potential host stratigraphies and lithologies,” FTL managing director and CEO Glenn Poole says.
“Our new ground hosts the same geological units that we are targeting with our current drill program and extensive Heli-EM survey and are already proven to host high-grade VMS zones.
The current Airborne EM survey we have underway will cover the 16km of the expanded 25km of prospective strike horizon the Firetail team are exploring.”
Key terms of the acquisition
FTL has acquired 100% of mineral claims 038432M, 038381M, 038024M and 038025M in exchange for CAD$22,500 cash and 1,500,000 fully paid ordinary FTL shares to be issued via the Company’s available placement capacity under Listing Rule 7.1.
The vendors will retain a 2% NSR Royalty from the sale of any mineral mined from the Royalty Area by or on behalf of Firetail.
Firetail has the ability to buy back 1% of the royalty for C$500,000.
What’s coming up?
Further, undocumented historic shafts and workings have also been noted in the proposed acquisition area.
FTL anticipates targeted, high-resolution geophysics, mapping and sampling will define more potential targets.
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This article was developed in collaboration with Firetail Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
