Tempest Minerals (ASX: TEM) acquiring large-scale gold project in Fraser Range - Kalkine Media

Highlights

• Tempest Minerals has signed a non-binding term sheet to acquire the Elephant Project located on the periphery of the Albany Fraser Belt in Western Australia.
• Elephant Project includes exciting exploration ready geophysical and geochemical targets.
• TEM will make an initial payment for acquiring 80% of Lusture Pty Ltd, which owns the Elephant Project. 

Tempest Minerals Ltd (ASX: TEM) is all set to acquire the Elephant Project, a large-scale exploration target located on the periphery of the Albany Fraser Belt in Western Australia. The project includes coincident geochemical and geophysical targets with a footprint similar to other gold deposits in the region.

According to the non-binding term sheet inked for the transaction, Tempest will make an initial payment to purchase the project from MAC3 Pty Ltd, which holds 100% of the issued capital of Lusture Pty Ltd, the project owner. As per the signed agreement between the parties, Tempest owns the right to earn 80% of Lusture.

Data source: company update

 An overview of Elephant Project

With 194km² of highly prospective exploration leases, the Elephant Project is situated on the edge of a geological block with the suture between the Yilgarn and Albany-Fraser.

In the Fraser Range / Albany Fraser region of Western Australia, there has been the discovery of the Tropicana Gold Mine in ~2004 as well as the Ni/Cu/Co Nova Bollinger Deposit by Sirius Resources in 2012. The region offers the opportunity for more potential discoveries in various commodities such as gold, says the company update.

The project boasts strong geophysical anomaly and coincident geochemical data from nearby prior exploration. The project holds similarities to other high-rank deposits in the regions such as Tropicana, in terms of large scale and nature of the anomaly. Tropicana peak soil was measured at 31pbb with 0-15m cover, while the Elephant Target measures 5-10pbb with 100-150m of cover.

 Shares jump over 7%

Triggered by the update, TEM shares gained over 7.1% to trade at AU$0.015 (market cap of over AU$7 million) at the time of writing on 16 August 2023.