Transformed’ TNT Mines pounces on historic WA gold projects, shares explode

Special Report: TNT (ASX:TIN) will acquire private WA gold explorer Warriedar Mining, run by the same team that made Spectrum Metals the most exciting exploration success story of 2019.

In late 2018, ~$4m market cap Spectrum Metals (ASX:SPX) acquired the historic Penny West gold project in the Youanmi region.

The tiny explorer immediately struck ‘bonanza’ grade gold about 150m north of the historic high-grade open pit.

A year of constant exploration success culminated in a lucrative ~$231m takeover from miner Ramelius (ASX:RMS) earlier this year.

That’s a ~5500 per cent return for investors in just over 12 months.

After completing the sale, Spectrum founders Alex Hewlett, James Croser and other business partners established Warriedar Mining with a view to replicating that success.

The Eureka and Warriedar assets in WA were identified as having the exploration potential to deliver another ‘Spectrum-like’ success story.

TNT has now signed an all-share deal to acquire Warriedar Mining and its Eureka and Warriedar gold projects.

As part of the transaction, Hewlett and Croser will join the TNT board as chairman and a non-executive director, respectively.

Current Warriedar chief exec and veteran geologist Matthew Boyes will become TNT’s new CEO.

TNT has also received firm commitments from strategic high net worth investors and funds for a placement to raise $3.9m, used to fund “high priority” work programs starting as soon as possible in 2020.

The Eureka and Warriedar gold projects

Both Eureka and Warriedar have a history of gold production, are located close to operating gold mills, and demonstrate potential for the “rapid delineation of significant shallow high-grade gold resources”, TNT says.

Eureka, which already has a 43,000oz resource and is under granted Mining Leases, will be the initial focus.

Warriedar believes that the strike and depth potential of the Eureka mineralised system has not been fully tested.

Initial exploration will focus on expanding existing gold resources below the current 120m deep, 300m long open pit and testing ‘structures’ to the north and south.

At the super high grade Warriedar project, initial exploration will focus on the high-grade, shear hosted mineralisation as mined at the historic ‘Reids Ridge’ shaft.

Formerly known as the Rose Marie mine, Reids Ridge has produced high-grade gold from underground on-and-off from 1913 through to present day.

These are some of the pre-1960s production numbers:

Check out those grades.

TNT will compile past drilling data in the mine area and then assess potential for additional targeted drilling to define high grade (+10g/t gold) mineralisation.

Workings extend for some distance along strike and may offer new ‘step-out’ drill targets, the company says.

“Warriedar Mining stands out as a unique opportunity to acquire two Western Australian gold projects with a history of production and close access to infrastructure and to join with a management team that has a very successful track record in the exploration and redevelopment of ex-production gold assets in WA,” TNT executive director Brett Mitchell says.

“We have secured a very rare opportunity for TNT Mines to bring a team with recent success in unlocking the exploration potential of historical high grade production assets in the Goldfields, along with the strong corporate backing and following of this team from their recent Spectrum Metals success.

“We look forward to the future for TNT Mines.”

This article was developed in collaboration with TNT Mines, 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.