Lord Resources Expands Portfolio with Acquisition of Ilgarari Copper Project
LORD RESOURCES LIMITED (LRD) Share Update November 2024 Tuesday 5th
Lord Resources Acquires High-Grade Copper Project in Western Australia
Lord Resources Limited (ASX: LRD) has announced a strategic acquisition of a high-grade copper project in Western Australia, marking a significant expansion of its exploration portfolio.
Instant Summary:
- Earn-in agreement to acquire up to 80% interest in Ilgarari Copper Project.
- Historic drilling reveals high-grade copper intersections over a 4 km strike.
- IP and geophysical surveys identify multiple new drill targets.
- Additional tenement applications submitted to expand exploration footprint.
Project Overview
The Ilgarari Copper Project, located 110 km south of Newman, Western Australia, is hosted within the NE-trending Ilgarari Fault. This fault crosscuts various rock formations, including siltstones, shales, and dolerite sills. Previous exploration has identified copper mineralization over a 4 km strike length, with significant high-grade intersections.
Historic Drilling Results
Historic drilling at the site has returned promising results, including 17m at 1.27% Cu from 145m and 7m at 2.04% Cu from 147m. Other notable intersections include 17.1m at 1.20% Cu from 251m and 4m at 3.42% Cu from 251m. These results highlight the potential for significant copper resources at depth.
Geophysical Surveys
An Induced Polarisation (IP) survey conducted in 2012, along with recent geophysical reviews, has identified multiple new drill targets. These include a broad chargeability conductor that splays off the main mineralized fault zone. A regionally significant magnetic feature has also been modeled directly under the known mineralization, yet to be drill tested.
Earn-In Agreement Details
Lord Resources, through its subsidiary Tailflower Pty Ltd, has entered into a binding earn-in agreement with Blackrock Resources Pty Ltd. This agreement allows Lord to earn up to an 80% interest in the sulphide rights below 120m from the natural surface. The agreement involves staged payments and share issues, alongside a commitment to fund $1.5 million in exploration expenditure over four years.
This acquisition positions Lord Resources to significantly enhance its copper exploration portfolio. The high-grade results from historic drilling suggest a strong potential for resource expansion, which could positively impact the company's stock value. The strategic location and the tier-one jurisdiction add further appeal to this acquisition.
Investor Reaction:
Analysts are likely to view this acquisition favorably, given the high-grade nature of the copper intersections and the strategic expansion of Lord's exploration footprint. The market may respond positively as the company progresses with its exploration plans.
Conclusion:
Investors should keep an eye on Lord Resources as it advances its exploration activities at the Ilgarari Copper Project. The company's systematic approach to exploring the extensions and source of mineralization could unlock significant value.