Woomera Mining Limited (ASX: WML) is involved in the mining exploration area. The company primarily operates in the exploration of lithium, caesium, tantalum and light rare earth metals. It has exploration licenses in the Musgrave Province and Gawler Craton in South Australia (SA) as well as significant lithium tenement portfolio in Western Australia (WA).
The company today, on 23rd May 2019, announced that it has signed a Heads of Agreement (HOA) with Cazaly Resources Limited to purchase an 80% interest in Mt Venn gold and nickel project of Cazaly, located 125 kilometres northeast of the township of Laverton in the north-eastern goldfields of Western Australia.
Framework for a detailed Share Acquisition and Joint Venture (JV) Agreement has been provided in the HOA, which the parties are legally bound to use their reasonable endeavours to negotiate and execute on or before 20 August 2019. The Heads of Agreement describes the key terms, which have been agreed and must be incorporated into the final agreements.
As is agreed, Woomera will acquire 100% of the shares in Yamarna West Pty Ltd, a wholly-owned subsidiary of Cazaly, which holds the tenements. Yamarna will then transfer a 20% undivided interest in the Tenements to Cazaly, and Cazaly will enter into an agreement with Yamarna to establish an unincorporated joint venture, under which the JV parties will hold the interests (Yamarna 80% and Cazaly 20%).
The Mt Venn project has two granted exploration licences E 38/3111 & E 38/3150. Additionally, on the granted exploration licences, the ground covered by four expired prospecting licences over the historic Chapman’s Reward mine is due for an amalgamation into E 38/3111. The tenements which cover approximately 390 square kilometres occur over some 50 kilometres of strike of the Mt Venn Greenstone Belt giving Woomera the dominant land position over the Belt.
Several gold anomalies have been identified from the soil and rock chip sampling and RAB, aircore and Reverse Circulation drilling, including very high-grade rock chip samples at Chapman’s Reward and Lang’s Find that resulted in assays greater than 200 g/t Au.
Several late time conductors have been identified by Airborne Electromagnetic Surveys within the Mount Cumming and Mount Cornell ultramafic complexes. The conductors are considered to be potential sulphide sources in the basal contact zones of the mafic and/or ultramafic intrusions.
Mt Venn greenstone belt is associated with the Yamarna Shear and is in close proximity to Gold Road Resources (ASX: GOR) Gruyere gold deposit (5.88 Mozs. gold) located in the neighbouring Dorothy Hills Greenstone Belt.
The stock was suspended from the trading on ASX; however, post the release of today’s news announcement the shares of WML were back on trade on the ASX. The stock of Woomera Mining Limited was trading at $0.033 (as at AEST: 3:41 PM, 23rd May 2019) down by 8.33%. The stock has yielded a negative YTD return of 52.0% and exhibited returns of -59.09%, -38.98% and 12.50% over the past six months, three months and one-month period, respectively. Its 52-week high price stands at $0.140.