Strickland Metals Limited

Strickland Metals Limited

© 2020 Strickland Metals Limited

ABN 20 109 361 195  |  TERMS

Previously Alloy Resources Limited

The Horse Well Gold Project is located in the Warburton Mineral Field of Western Australia and is approximately 85 kilometres northeast of the town of Wiluna.

The Horse Well Gold Project occurs in the northern most part of the Yandal/Millrose Greenstone belt that hosts a number of multi-million ounce gold projects, such as Jundee, Bronzewing, and Darlot-Centenary gold mines.

Location

Warburton Mineral Field, Western Australia

Minerals

  • Gold

Project Location

Figure 1: Strickland Metals 950 km2 Horse Well Gold Project in the Yandal Greenstone Belt (view PDF)

The project is only 50 kilometres north of Northern Star’s 220,000 ounce per annum Jundee Operation, with excellent regional and local infrastructure.

Figure 2: Horse Well Gold Resources and Prospects (view PDF)

The Horse Well portion of the greenstone belt has only had focussed exploration along the southern part, where the Company and previous explorers have identified JORC gold resources in near surface deposits to date.


Gold Resources

Gold resources at Horse Well currently stands at 5,722,400 tonnes @ 1.4 g/t for 257,000 ounces.

AreaTonnesGrade (g/t)Ounces Gold
Palomino930,4002.2968,300
Filly SW302,4001.8017,200
Filly206,0001.328,700
Warmblood788,0002.153,900
Dusk til Dawn3,495,6001.0108,900
Total5,129,4001.5257,800

Table 1: Horse Well Mineral Resources (JORC 2012)


The project is well mineralised and has a number of prospects within the 45-kilometre strike of greenstone belt. The Company has been focussing more recently on known gold prospects and reviewing geological and resource models with a view to defining opportunities to expand Mineral Resources as well as the economic potential for development.

The Company’s aim is to define shallow high-grade Mineral Resources within the Project that at these gold prices will support trucking and toll milling, or as initial Resources for future stand-alone mining operations.

The Horse Prospect mineralisation is contained in sub-vertical ribbon like structures that contain higher grade shoots that plunge at approximately 45 degrees to the north. All Horse prospects apart from Warmblood were discovered in the 1990’s, with Warmblood first drilled in 2011 by the Company.

Figure 3: Horse area Resources and Prospects with drilling (view PDF)


Joint Venture with Silver Lake Minerals Limited

In May 2014 a Farm-in Joint Venture was entered into with W.A gold producer and explorer Doray Minerals Limited - who have subsequently taken over by Silver Lake Resources Limited ('Silver Lake').

Doray were exploring with a view to discovering a 1 million ounce gold deposit stand-alone, sufficient to support a 100,000 ounce per annum new mining operation.

The Joint Venture was renegotiated in January 2018 and Strickland Metals purchased an 11% share back from Doray to become 51% shareholder and Manager. In early 2020 the Company sole-funded additional exploration to a level where its’ interest is now 63%. As at 31 August 2020 the Joint Venture had not defined the ongoing funding of Work Programs.

Terms of the current JV are:

  • Silver Lake can contribute or dilute to defined Work Programme’s and Budgets.
  • If any party dilutes to below 5% then it reverts to a 1% NSR.
  • The HWJV may nominate areas for a 'Small Mine' Development - for any Resource below 1.5 Moz, Area can be separated out of the JV, and Mining JV can elect to Mine, Process, Toll Mill or Sell.

Future Activities

The Company’s aim is to upgrade the high-grade Mineral Resource within Project and explore short-term development opportunities with the current gold prices to support trucking and toll milling, or stand-alone mining operations.