Solstice Minerals Refines Yarri Project with Strategic Tenement Sale
SLS (SLS) Share Update December 2024 Thursday 5th
Solstice Minerals Divests Non-Core Tenement to Focus on Yarri Project
Solstice Minerals Limited (ASX: SLS) has announced the sale of a non-core exploration license to Kalgoorlie Gold Mining Ltd (ASX: KAL), aligning with its strategy to focus on its core Yarri Project holdings.
Instant Summary:
- Sale of non-core Exploration Licence E31/1262 to Kalgoorlie Gold Mining Ltd.
- Solstice receives KAL shares equivalent to $70,000 and retains a 1% Net Smelter Royalty.
- Awaiting assay results from Bluetooth Gold Prospect's RC drilling program.
- Upcoming aircore drilling at Edjudina Range to explore new gold targets.
- Solstice maintains a strong cash position of $15.8 million for future opportunities.
Tenement Sale Details
Solstice Minerals Limited has completed the sale of its non-core Exploration Licence E31/1262 to Kalgoorlie Gold Mining Ltd. This strategic move is part of Solstice's ongoing efforts to refine its key Yarri Project tenement holdings. The 70 square kilometer license is located south of Solstice's primary gold targets and activities, allowing the company to focus on more promising areas.
As part of the transaction, Solstice will receive shares in Kalgoorlie Gold Mining equivalent to $70,000 and will retain a 1% Net Smelter Royalty (NSR) on any future production from the tenement. This deal follows Solstice's earlier divestment of the Hobbes Exploration Licence, which brought in $10 million in cash from Northern Star.
Exploration Updates
Solstice is eagerly awaiting assay results from its recent 19-hole Reverse Circulation (RC) drilling program at the Bluetooth Gold Prospect. The drilling intersected mineralized chert, ironstone, and quartz vein target horizons in multiple holes, with historical intercepts indicating promising gold mineralization.
In addition, Solstice plans to recommence aircore drilling at the Edjudina Range in early January. This follows a successful reconnaissance drill traverse that returned a 6-meter intercept at 1.88 grams per tonne gold at the end of the hole. The Edjudina Range target remains largely unexplored, offering significant potential for new gold discoveries.
Strategic Focus and Financial Position
Solstice continues to identify and develop new gold targets across its Yarri Project portfolio. The company's robust cash position of $15.8 million provides flexibility to pursue further exploration and development opportunities, enhancing shareholder value.
Solstice's strategy involves advancing key targets such as Bluetooth, Statesman Well, and Bunjarra through to resource definition drilling. The recent sale of the Hobbes tenement highlights the potential value of smaller deposits in this infrastructure-rich region.
The divestment of non-core assets allows Solstice Minerals to concentrate resources on its most promising exploration targets, potentially leading to more significant discoveries and increased shareholder value. Retaining a 1% NSR ensures that Solstice benefits from any future production from the sold tenement. The company's strong cash position supports ongoing exploration and potential acquisitions, positively impacting its stock value.
Investor Reaction:
Analysts are likely to view the sale positively, as it aligns with Solstice's strategic focus on high-potential gold targets. The retention of a 1% NSR provides a potential future revenue stream, while the company's cash reserves offer security and flexibility for future exploration efforts.
Conclusion:
Investors should keep an eye on upcoming assay results from the Bluetooth Gold Prospect and the continuation of exploration at the Edjudina Range. Solstice's strategic focus and financial strength position it well for future growth and value creation.