Eastern Metals (ASX:EMS) reports it has completed the acquisition of the Neutral Junction Project in the Northern Territory from unlisted startup Bowgan Minerals.
The company acquired the 504km-square Neutral Junction project as it is situated immediately adjacent to and along trend from its Home of Bullion Copper Mine, which demonstrates excellent potential for copper-gold mineralisation.
The tenement area boasts direct exposure to the Barrow Creek Pegmatite Field in the north and the Alcoota Pegmatite District to the south, while part of the acquired package is located adjacent to the Sandover copper project, held by Encounter Resources (ASX:ENR).
Eastern Metals reports all tenure is within the Arunta pegmatite province and is prospective for lithium bearing LCT pegmatites, base metals, rare earth elements (REEs) and gold mineralisation, including a highly prospective copper trend adjacent to the Home of Bullion copper mine.
The company has commissioned a third party to prospectively review these tenements in order to augment the existing copper and lithium exploration strategy.
Commenting on the acquisition, Eastern Metals Managing Director and CEO, Wayne Rossiter said: “Our Arunta Project has been significantly enhanced with this acquisition which dramatically increases the scope to discover additional copper and gold resources along trend from the Home of Bullion Mine, in addition to targets already identified on existing tenure.
“Our Arunta Project has been significantly enhanced with this acquisition which dramatically increases the scope to discover additional copper and gold resources along trend from the Home of Bullion Mine…”
This new area is known to have anomalous copper from earlier exploration. The significant increase this acquisition brings in the Barrow Creek pegmatite field and broader Arunta Pegmatite Province provides Eastern Metals with significantly increased potential for discovery, not just of lithium but also REEs, base metals and gold.”
Eastern Metals also notes that this acquisition has resulted in the company being the registered holder of 5 tenements, with a legal 75% joint venture interest in a sixth tenement held by Mithril Resources (ASX:MTH), bringing the company’s total land holdings to 593km-square.
In addition, several companies including: Core Lithium (ASX:CXO), Askari Minerals (ASX:AS2), TNG (ASX:TNG) and Australasian Gold (ASX:A8G) have already began lithium exploration within the Arunta pegmatite province.
Key terms of the acquisition included the consideration of a $150,000 payment, made up of $50,000 in cash and the allotment of 408,163 fully paid EMS shares issued at a price of $0.245 per share.
The Neutral Junction project comprises distinct tenement areas, including the northern Home of Bullion, Donkey creek and the southern Adnera areas, which all fall within the company’s Arunta project area, located east of the Stuart Highway between Alice Springs and Tennant Creek. The project has the potential to host new orogenic-style gold deposits within Tanami-style geology, as well as new economic copper and base metal deposits within an iron-oxide, copper-gold (IOCG) skarn and/or a Broken Hill-style base metal deposit setting.
With the acquisition of the Neutral Junction project now complete, Eastern Metals announces that payment of the cash consideration and allotment of the EMS shares is imminent.
Images: Eastern Metals Ltd