Errawarra Resources Ltd (ASX: ERW) (Errawarra or the Company) is delighted to announce that it has entered binding agreements (refer Acquisition Terms) pursuant to which the Company has acquired 70% of the historical Elizabeth Hill Silver Project (“Project” or “Elizabeth Hill”), 70% of the silver rights to the Pinderi Hills Project tenement package and 70% of the ownership of 3 tenements or tenement applications surrounding the silver project. This collective tenement package totalling 180km2 is in the Tier 1 mining jurisdiction of the Pilbara, Western Australia (Figure 2 – Project Location).
HIGHLIGHTS:
Transformational acquisition of the high-grade Elizabeth Hill Silver Project in the West Pilbara mining region of Western Australia
Acquisition agreed in conjunction with a $3 million placement to existing shareholders and new investors including major fund investors
Historical production of 1.2Moz Ag from 16kt ore (~2,194 g/t Ag head grade)1 over only 1 year of operation
Elizabeth Hill mining operations ceased in 2000 due to declining silver prices (~USD $5/oz)2
Requisite geology and structure present, with the Project located on a major ultramafic complex with multiple high grade silver drill intercepts including3:
11.7 m @ 5,371 g/t Ag from 13m (21EHDD003)
24 m @ 1,228 g/t Ag from 64m (AMEHRC009)
43 m @ 370 g/t Ag from 0m (22AMC001); and
24.8m @ 915 g/t Ag from 2m (21EHDD001)
Errawarra becomes the first explorer to consolidate the Elizabeth Hill Mine and the surrounding land package of 180km2, which covers additional highly prospective underexplored areas for silver mineralisation
Experienced precious metals geologist Mr. Robert Mosig has joined the board to assist in fast-tracking forward development and exploration activities at Elizabeth Hill
Highly respected ERM Consultants led by Mr Ian Stockton have already commenced analysis of the Elizabeth Hill geological setting including comparisons with analogous projects globally to assist in target generation
Project located on a granted mining lease (ML) and all the required exploration/drilling approvals are in place to fast track immediate drilling post site visit and target prioritisation
The Elizabeth Hill Project acquisition is conditional upon meeting the condition precedent and obtaining the relevant approvals, amongst others, Errawarra entering into separate joint venture agreements with Alien Metals Limited (Alien) (AIM: UFO) and GreenTech Metals Limited (GreenTech).
This transformational acquisition ensures that the Company is now underpinned by a high-grade historical producing silver asset, with significant resource growth potential and future low-cost operational opportunities in a Tier 1 global mining jurisdiction.
Chairman Thomas Reddicliffe commented:
“This is an exceptional opportunity for our shareholders, and we are fortunate to have secured an interest in the Elizabeth Hill Silver Project and extensions. This will enhance our existing exploration projects in the same region of Western Australia with the addition of an interest in a high-grade past producing silver asset with growth potential not previously tested.”
“The combination of existing high-grade silver intercepts signify growth potential and compelling exploration prospectivity at both near mine and regional targets. With Elizabeth Hill being located on an approved mining lease, this presents an opportunity for the Company to fast-track drilling and, if successful, mining supported by a buoyant silver market driven by strong investor demand and global issues.”
“We look forward to immediately getting work underway with regular news in the near future”.
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