Pilbara gold hopeful Rumble Resources gains 7pc on zinc buy
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Pilbara gold hopeful Rumble Resources is continuing its strategy of buying highly prospective exploration opportunities, this week picking up a majority stake in a West Australian zinc project.
Last week Rumble told investors a review of its Braeside project in the Pilbara had confirmed “Witwatersrand-style conglomerate-hosted gold mineralisation” in the same kinds of rock formations that began giving up nuggets to Novo Resources and Artemis Resources (ASX:ARV) in July.
Under the new deal, Rumble (ASX:RTR) would acquire up to 75 per cent of the 75 sq km project — which lies 110 km north of Wiluna in the centre of WA — from a subsidiary of Zenith Minerals (ASX:ZNC).
Rumble gained more than 7 per cent on Thursday to close at 7.3c, capitalising it at $20.7 million.
Drilling has defined zinc and lead mineralisation over 20km of strike within the Earheedy Basin.
Mineralisation style is similar to Mississippi Valley Type (MVT) large high-grade base metal deposits including the Lenard Shelf deposits in the Kimberley.
MVT deposits account for about 25 per cent of the world’s lead and zinc deposits and are named after districts within the drainage basin of the Mississippi River in the central US.
High-grade zinc up to 18.6 per cent within an intersection of 3.3 metres at 11.2 per cent zinc and 0.93 per cent lead from 150 metres has been intercepted from historical drilling.
Rumble will now conduct a detailed gravity survey to define priority targets to drill-test.
Rumble will initially pay $50,000 for a two-year option to purchase 75 per cent stake and must spend a minimum $100,000 before it can withdraw from the agreement.
The company can extend the option by a further two years for $200,000 in shares and cash.
Alternatively, it can elect to acquire the 75 per cent project outright by paying $500,000.
Rumble was in the news last week after getting in on the Pilbara gold rush after finding signs of possible mineralisation at the Braeside project.
The company is fast tracking exploration at Braeside where it is targeting a drill program of high grade zinc-lead-silver-copper-gold deposits before the end of 2017.