Jadar Secures Largest Producing Tin Projects in the Northern Territory with Acquisition of Mt Wells & Maranboy Projects Portfolio
9th August 2021
Highlights:
- Jadar has signed a Term Sheet for the 100% acquisition of a portfolio of projects in the Northern Territory collectively referred to as the Mt Wells and Maranboy Projects Portfolio, these include namely:
- Mt Wells – Tin and Copper
- Maranboy – Tin
- Emerald Hill – Tin
- Mt Diamond – Copper, Gold and Silver
- Copperfield – Copper, Gold and Silver
- McKinlay – Gold Speargrass – Gold and Tin
- Rocks Ridge Project – Gold
- Rosemary – Tin
- Millers – Iron-Manganese
- Millers Gold – Gold
- Historically significant production and largest producing tin project in the Northern Territory:
-
Mt Wells historic production of 99,000t of ore for 1,000t of tin, 1.01% Sn recovered grade.
- Minor historic production of copper resources at Mt Wells with only 7t of handpicked ore from hanging wall grading 37% copper.[i]
- Maranboy historic production of 49,314 tons of ore for 800.57t of tin, 1.66% Sn recovered grade.[ii]
- No significant production since 1929 at Mt Wells and 1952 at Maranboy.
- Extensive drilling has been completed at the Mt Wells tin-copper deposit and Maranboy tin deposits in preparation for upgrading non-JORC compliant resources to maiden JORC compliant resources.
- Surface geochemical surveys completed which has identified target extensions ready for drilling.
- Existing infrastructure on site including processing plant, offices, accommodation and messing, large dams for water supply and tailings storage, communications system and weighbridge, access and haul roads, underground development and access, water bores and tanks.
- Development scoping study and preliminary desktop plant design study completed.
- Coarse-grained free-milling cassiterite tin ore; proven, simple processing methods.
- Significant tenement holding of 32 granted Mining Leases, 1 mining lease application, 2 granted exploration licenses and 1 exploration license application. Totaling 231.18 km2 of exploration leases and 301.1 ha of mining leases.
- Limited modern exploration conducted to realise the full potential of the Projects.
Jadar Resources Limited (ASX:JDR) (“Jadar”, the “Company”) is pleased to announce that it has signed a Term Sheet with private mining company Outback Metals Pty Ltd (“Outback”) for the purchase of a portfolio of Northern Territory projects collectively referred to as the Mt Wells and Maranboy Projects which contain several Tin, Copper, Silver, Gold, Tungsten and Iron-Manganese prospects. Total consideration for acquisition of the Mt Wells and Maranboy Projects is A$6.5m cash (payable over 12 months) and 20 million options (at an issue price of $nil). It is anticipated that the purchase price is partly funded through a $3m Convertible Note and the use of the Mint Capital Advisors finance facility (refer announced 17 February 2021).
The Mt Wells and Maranboy group of projects are collectively comprised of 32 granted Mining leases, 1 mining lease application, 2 granted exploration licenses and 1 exploration license application. The acquisition includes 107 acres of freehold land underlying the processing plant, buildings, and other infrastructure.
Mt Wells has existing infrastructure already in place including:
- 20-50tph gravity concentration plant – Mill building comprising crushers, rod mill, trommel, jigs, spirals and shaking tables
- Offices and three large stone buildings
- Accommodation and messing for 20 people
- Large dams for water supply and tailings storage
- Communications system and weighbridge
- Access and haul roads
- Underground workings including an adit and railway
- Water bores and water tanks
- Ore bins and conveyors
Jadar intends to quicky evaluate and convert the current known non-JORC compliant resources at Mt Wells into JORC-compliant resources to enable the Mt Wells tin-copper project to be brought back into production to capitalise on current commodity prices and further expand the Project’s development and exploration.
Additional Mineral Resource Estimates (MRE) were completed by previous explorers at a number of deposits within the Mt Wells and Maranboy Projects including Mt Wells, Rosemary, Emerald Hill, Mt Diamond, Copperfield and Maranboy. These deposits will also be rapidly assessed for potential near-term mining opportunities.
Following execution of the Term Sheet Jadar will have 30 days to complete due diligence, with the option to extend for an additional 30 days. Completion of the transaction is subject to Jadar having completed and being satisfied with the results of due diligence.
Figure 1 – Mt Wells processing plant
Jadar Resources’ Executive Director Adrian Paul commented:
The acquisition of the Mt Wells and Maranboy Projects Portfolio is another significant achievement for Jadar as we continue to build a clear strategy for our Australian group of assets and that is a focus on technology and precious metals. Having progressed Khartoum to final stages of acquisition completion we have now secured a historically significant group of previously producing assets. Tin prices have had an incredible run over the last 12 months with demand for electronic goods as a result of the global COVID-19 pandemic pushing prices higher. This shortage of tin in the global market is now clearly evident and we believe we have started to collate the right projects to help fill that gap.
Please follow the link to view entire original news in English language:
ENDS
For further information, please contact:
Luke Martino
Non-Executive Chairman
Tel: +61 8 6489 0600
Adrian Paul
Executive Director
Tel: +61 8 6489 0600
This ASX announcement was authorised for release by the Board of Jadar Resources Limited.
Forward Looking Statement
Forward Looking Statements regarding Jadar´s plans with respect to its mineral properties and programs are forward-looking statements. There can be nо assurance that Jadar’s plans for development of its mineral properties will proceed as currently еxpected. Therе can also be no assurance that Jadar will be able to confirm the presence of additional mineral resources, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of Jadar’s mineral properties. The performance of Jadar may be influenced by a number of factors which are outside the control of the Company and its Directors, staff, and contractors. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the company’s prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.
Competent Person’s Statement
The information in this announcement that relates to the Mt Wells and Maranboy Projects, including Exploration Targets, is based on information compiled by Mr Erik Norum who is a Member of the Australian Institute of Geoscientists. Mr Norum is contracted to Jadar. Mr Norum has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Norum consents to the inclusion in this announcement of the matters based on information in the form and context in which it appears.
Please follow the link to view entire original news in English language:
[i] Mt Wells Historic Production - https://geoscience.nt.gov.au/gemis/ntgsjspui/bitstream/1/59733/1/CR19580007.pdf
[ii] Maranboy Historic Production - https://ecat.ga.gov.au/geonetwork/srv/eng/catalog.search#/metadata/236
