Tartana Minerals Limited (ASX: TAT) (the Company) is pleased to advise that it has entered into a non-binding term sheet to acquire a private explorer, Queensland Strategic Metals Pty Ltd (QSM) (the Acquisition).
Highlights:
- Non-binding agreement to acquire Queensland Strategic Metals Pty Ltd (QSM) which holds ten EPMs and one ML covering copper, tin, tungsten, antimony and silver and gold prospects.
- Key QSM projects include Laheys Creek, Comeno, De Wett, Lady Agnes and Tap’n’Toe, Fluorspar in the which polymetallic (Sn, Pb, Cu, Ag, Au, REE, Indium) prospects relate to Carboniferous-Permian granites.
- The most advanced is the Daisy Bell prospect where a mineralised 6 – 9 m wide greisen dyke can be traced for at least 1.8 km along strike. Historical percussion drilling includes:
- 7.6 m @ 1.25% Sn & 0.3% WO3 from 32.0m (Hole 2)
- 13.7 m @ 1.46% Sn & 0.48% WO3 from 36.6m (Hole 10)
- Other projects include Ortona and Cherry Tree copper projects where high grade (>10% Cu) chalcocite exposures are present in outcrop. Ortona has a magmatic affiliation with exposure of copper (chalcocite) grading up to 10% Cu in a series of parallel veins as well a 1.8 m zone grading 1.3 % Co & 1.0 % Ni at surface. Cherry Tree has prospective magnetic targets near the Dianne Hight Strain zone supported by a chalcocite exposure.
- The QSM assets compliment the existing Tartana exploration portfolio providing both additional copper targets as well as increasing Tartana’s exposure to critical metals.
- Completion remains subject to executing binding formal documentation and shareholder approval pursuant to Chapter 7 and Chapter 10 of the ASX Listing Rules.
Completion of the Acquisition remains subject to formal documentation being executed and shareholder approval by Tartana’s shareholders for the purposes of ASX Listing Rule 10.1, 10.11, and 7.1 (further detailed below), amongst other conditions precedent. There can be no assurances that the transaction will complete until such time that all conditions precedent have been met. A summary of the terms of the non-binding agreement is set out at Annexure A.
Acquisition Rationale
QSM’s EPMs and ML are located Far North Queensland and are complementary to Tartana’s existing exploration portfolio with two copper projects with high grade copper surface mineralisation as well as several EPMs covering critical mineral prospects. The critical mineral EPMs are in proximity to Tartana’s own Herberton (Emuford) EPM Application (EPMA 27220) and are part of move by Tartana to increase its exposure to tin, tungsten and silver and other critical metals.
With Tartana’s Copper Sulphate production continuing to produce healthy cash flows, the Company has also been focused on investigating the development of primary copper mineralisation at the Tartana open pit as well as increasing its exploration portfolio to incorporate additional and complementary projects targeting copper and critical metals. While the former has involved drilling a metallurgical hole (D15) and completing metallurgical test work (flotation recoveries and ore sorting), the opportunity to acquire QSM addresses the latter.
About QSM
QSM has, over the course of recent years aggregated ten EPMs and one ML covering 771 km2 in Far North Queensland (See Figure 2). QSM has acquired the tenements through a series of transactions with tenure holders with a focus on discovery of hardrock critical and strategic metal projects, particularly tin, tungsten and copper.
In some cases the vendors of these tenements have held them for a significant period of time with a focus on alluvial mining over hard-rock exploration. QSM was able to secure attractive terms to acquire these tenements by leaving the alluvial rights in the hands of the vendors or Queensland Alluvial Resources Pty Ltd (further detailed below).
QSM has 7 project areas which are listed in Figure 1. Each project area contains prospects recorded by the Queensland Department of Resources and these are listed under each project/EPM. The dominant metal associated with each project is colour coded with many relating to the minor metals; tin, tungsten and antimony.
While there are many prospects in several of the permits, QSM has completed site visits and discussed the various prospects with ‘old time miners’ to establish which particular projects offer potential scale and potential unmined mineralisation. These projects are in bold in Figure 1.
Figure 1. QSM tenure and various prospects. QSM has prioritised the projects which are identified in bold.
Figure 2. Tartana and QSM EPMs.
A detailed project review has been provided at Annexure B.
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