Strickland Metals has seriously extended its Horse Well gold project on WA’s Yandal greenstone belt by acquiring the Yandal East gold project from Renegade Exploration.
Yandal East is around 320km2 in size, sits immediately south of Strickland’s (ASX:STK) flagship Horse Well project and 30km due east of Northern Star Resources’ +10 million ounce Jundee operation.
The acquisition represents a major consolidation of tenure over the eastern flank of the Yandal belt for Strickland, adding a further 60km of largely untested strike to the company’s tenure along the geologically significant Celia Shear zone.
Strickland now has a total landholding with over 100km of prospective mineralised trike along the Celia Shear.
Strickland CEO Andrew Bray said the company was pleased with the outcome of the transaction.
“We are very excited to have secured such a substantial footprint over one of Western Australia’s premier greenstone belts,” he said.
“Of particular interest is the fact that this north-eastern flank of the Yandal belt is significantly underexplored, despite its resource endowment elsewhere and its regional geology.
“Since securing Silver Lake’s interest in Horse Well, we set out to expand our footprint in the region. After concluding the transaction with Renegade, we will have consolidated a tremendous tenure position with outstanding exploration upside.
“Planning is well underway for a major systematic drilling program across this highly prospective gold system. We are scheduling to commence drilling early in the September Quarter 2021.”
Yandal calling
In addition to Jundee, the Yandal Belt is also home to substantial projects including the 4Moz Bronzewing and 3.5Moz Darlot gold deposits.
Despite this, the north-eastern flank of the belt of which Strickland is now the primary holder remains significantly underexplored.
At Horse Well, Strickland already has an existing mineral resource of 5.7 million tonnes at 1.4 grams per tonne gold for 257,000 ounces spanning the Dusk Til Dawn and Horse prospects.
The only other regionally significant deposit on the north-eastern flank is the Millrose gold deposit comprising 345,000 ounces at 1.8g/t. The remaining +100km of strike is yet to be tested.
Last month, Strickland outlined its plans to Stockhead to grow the resource at Horse Well, with the undertested Big Daddy prospect in its sights. You can read that story here.
Strickland took full ownership of Horse Well from Silver Lake Resources in May.
Terms of the deal
Under the terms of the deal with Renegade (ASX:RNX), Strickland will issue 40 million fully paid ordinary shares at a price of 3c and subject to escrow for 12 months.
A payment of $400,000 will be due at the completion of the transaction, with a further $400,000 to be paid six months after the completion date.
RNX will also receive a 0.5% net smelter royalty return over its ownership interest in the tenements.
In exchange, Strickland will receive 75% ownership of the Yandal East gold project, with privately-owned JV partner Zebina Minerals holding the residual interest and free-carried until mine development.
This article was developed in collaboration with Strickland Metals, 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.