Shree Minerals (ASX:SHH) surges ~8% on strong March quarter results - Kalkine Media

Highlights

• Shree Minerals Limited (ASX:SHH) has revealed its March quarter-ending report for the period ended 31 March 2022.
• The miner commenced a 15-hole RC drilling campaign at the Rock Lodge prospect in February 2022, which was recently completed.
• During the quarter, the miner was awarded a new exploration licence (EL9346) in the Lachlan Fold Belt.

Shares of Shree Minerals Limited (ASX:SHH) shot up as high as 7.69% during the intraday trading session on Thursday to trade at AU$0.014 after the company released its activities report for the March quarter.

In an upbeat market update, the diversified mineral exploration company outlined significant highlights of the March quarter period ending on 31 March 2022. Now, let’s have a look at the key activities undertaken by Shree at its iron ore, gold, and other significant projects during the quarter: 

Image source: © 2022 Kalkine Media® | Data Source: Company’s March quarter report (28 April 2022)

Re-permitting for the Direct Shipping Ore (DSO) project at Nelson Bay

The Circular Head Council & EPA Tasmania had advertised for public consultation in Dec 2021 which ended on 8 February 2022. EPA has received one representation and comments from several State Government agencies and bodies.

Source: Company’s March quarter report (28 April 2022)

In late March 2022, EPA issued a request for additional information regarding Flora & Fauna and advised that an additional request for information will follow on the other issues once all information has been processed.

After the mining of the South-DSO (Direct Shipping Ore) pit at the Nelson Bay Project is completed, the company will focus on the north pit, for which mine planning for an open pit has already been done.

RC Drilling at Rock Lodge

The miner commenced a 15-hole RC Drilling campaign at the Rock Lodge prospect in February 2022, which was recently completed. The program was intended to target coincident IP chargeability anomalies and gold arsenic bismuth soil anomalies.

Source: Company’s March quarter report (28 April 2022)

The company now plans to commence the two deeper diamond drill holes and Down Hole Electro Magnetic Surveys (DHEM) to search for off-hole conductors.

New Exploration Licence at the Lachlan Fold Belt

The quarter saw the miner secure a new exploration licence (EL9346) in the Lachlan Fold Belt. Containing two gold resources, the tenement covers the southwestern extension of a mineralised trend.

Previous soil geochemical programs have identified several gold anomalies within the tenement area, one of which coincides with the mineralised trend.

Also Read: Shree Minerals (ASX:SHH) expands Lachlan Fold Belt portfolio 

Heritage Protection Agreement with Ngadju Native Title Aboriginal Corporation

During the quarter, Shree also executed a Heritage Protection Agreement with Ngadju Native Title Aboriginal Corporation at the Dundas Project.

Several historical RC holes recorded anomalous gold geochemistry coincident with pegmatite intervals and their presence has very significant implications for the lithium potential of the region.

Source: Company’s March quarter report (28 April 2022)

Shree plans an RAB drilling program to test the identified Lithium pegmatite potential following the completion of heritage surveys, expected in June 2022.

Must Read: Shree Minerals (ASX:SHH) soars ~118% on excellent Au & Li prospectivity at Dundas

Divestment of Arunta JV Assets

During the quarter, the Company also executed a Sale and Purchase Agreement (SPA) with MetalsGrove Mining Ltd (MGM) for the divestment of its rights, title, and interest in the farm-in and joint venture and shareholder agreement with Territory Lithium Pty Ltd.

MGM had agreed to make a cash payment of AU$50,000 to SHH and issue 4,750,000 fully paid ordinary shares in the capital of MGM at a deemed issue price of AU$0.20 each.

Oversubscribed Placement

During the quarter, the Company received firm placement commitments from professional and sophisticated investors to raise AU$2,954,000 at AU$0.016 per share before costs. The placement was heavily subscribed.

Also Read: A flick through Shree Minerals’ (ASX:SHH) December quarterly activities report