- Lycaon Resources (LYN) is set to acquire the Bow River project in WA’s East Kimberley region
- Lycaon will become the owner of the project through its acquisition of East Kimberley Resources for 1.25 million shares and a one per cent net smelter royalty as part of the consideration
- The project comprises the Bow River and Salt Lick prospects where historical drilling has intersected massive to disseminated sulphides
- Lycaon Resources says the purchase offers an “extremely exciting opportunity” and it plans to conduct survey work and subsequent drilling later this year
- LYN shares are up 6.8 per cent to trade at 47 cents at 2:54 pm AEST
Lycaon Resources (LYN) is set to acquire a new nickel, copper and platinum group element project in Western Australia’s East Kimberley region.
The company entered a sale and purchase agreement to fully acquire East Kimberley Resources who is the holder of the Bow River project which comprises the Bow River and Salt Lick prospects.
Lycaon will issue 1.25 million shares to East Kimberley Resources at a deemed issue price of 40 cents each.
Fifty per cent of the consideration shares are freely tradeable from the date of issue, while the other half are subject to voluntary escrow until November 17, 2023.
Additionally, the company will pay up to $100,000 as a reimbursement for past expenditure and will also grant East Kimberley Resources a one per cent net smelter royalty.
Lycaon has also applied for an additional tenement within the East Kimberley region which covers 620 square kilometres of prospective Sally Downs Supersuite and Tickalara Metamorphics.
The Bow River and Salt Lick nickel-copper-cobalt prospects are sulphide-bearing and have similarities to Panoramic Resources’ (ASX:PAN) Savannah mine, 60 kilometres to the south, which has a mineral resource of 13.5 million tonnes at 1.56 per cent nickel.
Technical Director Thomas Langley said the acquisition provides an “extremely exciting” opportunity for Lycaon Resources to explore minerals needed for the global demand of critical and battery metals.
“The East Kimberley region has for a long time been known to have geological similarities to other major nickel belts such as Voisey’s Bay in Canada and the Fraser Range belt in WA, and the significant potential for additional discoveries in the region is further highlighted with the recent major Savannah North discovery in 2014 by Panoramic,” Mr Langley said.
The Bow River and Salt Lick prospects were discovered in the mid-1960s during a follow-up of anomalous copper values.
Subsequent mapping, sampling and other field activities led to identifying the Bow River intrusive which returned drill results of 3.17 metres at 1.45 per cent nickel and 0.41 per cent copper.
In 2002, survey work was completed to assess historical exploration and define new drill targets.
Following this, an electromagnetic (EM) survey outlined a conductive zone coincident with an existing soil geochemical anomaly.
A further six discrete conductors were identified, most of which hadn’t previously been tested.
Drilling of these targets intersected broad zones of low-grade nickel sulphide mineralisation up to 20 metres thick.
Lycaon said the historical results provides it with a “compelling” prospect to find nickel copper sulphides at depth.
The company plans to follow up on the historical exploration with EM surveys before it undertakes drilling in the December quarter.
LYN shares were up 6.8 per cent to trade at 47 cents at 2:54 pm AEST.