Woomera Mining Secures Advanced Copper-Gold Project in Mongolia
WOOMERA MINING LIMITED (WML) Share Update August 2024 Sunday 11th
Woomera Mining Acquires Major Mongolian Copper-Gold Asset
Woomera Mining Limited (ASX: WML) has announced a significant acquisition of the Bronze Fox copper-gold project located in Mongolia's Southern Gobi copper belt, marking a major milestone for the company.
Instant Summary:
- Woomera Mining to earn up to 100% interest in Bronze Fox project.
- Initial inferred resource of 194Mt at 0.26% Cu Eq.
- Acquisition funded by a mix of script and cash with $1.7m raised.
- Exploration and drilling to commence immediately.
Acquisition Details
Woomera Mining Limited has entered into a definitive agreement to earn-in and form a joint venture with Kincora Copper for the Bronze Fox project. The project, located in the world-class Southern Gobi copper belt, includes an inferred resource of 194Mt at 0.26% Cu Eq, translating to an inventory of 426Kt copper and 437Koz gold.
The acquisition is funded through a combination of script and cash, with a $1.7 million raising completed to support near-term exploration activities, including drilling. Woomera will invest up to US$4 million over five years to earn an 80% interest, with the option to secure 100% of the project.
Project Potential
The Bronze Fox project is a cornerstone, district-scale asset with an existing resource inventory and exploration targets. It is situated in an established copper belt, providing significant growth opportunities. The project includes a mining license and walk-up drill targets, allowing for an immediate start to exploration.
Woomera plans to increase resource tonnage through infill and extension drilling, as well as test regional Cu-Au porphyry targets. The company will also focus on high IP anomalies and grade gaps proximal to the resource envelope.
Strategic Importance
Mongolia is an established mining jurisdiction with significant growth potential. The country boasts over 60,000 mining employees and large underexplored areas. The Mongolian government prioritizes economic growth through strategic investments in mining infrastructure, offering a competitive regulatory environment and tax incentives.
Located near China, the world's largest copper consumer, Mongolia provides efficient transportation and logistics for copper exports. The country's stable democracy, high literacy rate, and projected GDP growth of 6.4% in 2025 further enhance its attractiveness as a mining destination.
The acquisition of the Bronze Fox project is expected to significantly enhance Woomera Mining's asset base and exploration potential. The project's existing resource inventory and strategic location in the Southern Gobi copper belt position Woomera for substantial growth. This announcement is likely to positively impact Woomera's stock price as investors recognize the long-term value of the project.
Investor Reaction:
Analysts are optimistic about the acquisition, noting the project's significant resource potential and strategic location. The immediate start of exploration activities is seen as a positive move, demonstrating Woomera's commitment to unlocking the project's value. Investors are likely to respond favorably, given the project's potential to drive future growth.
Conclusion:
Woomera Mining's acquisition of the Bronze Fox project marks a significant step forward for the company. Investors should monitor the progress of exploration activities and consider the long-term growth potential of this strategic asset. Stay informed on Woomera Mining's developments and the broader market trends to make well-informed investment decisions.