Woomera Mining Limited Acquires Bronze Fox Copper-Gold Project in Mongolia
WOOMERA MINING LIMITED (WML) Share Update August 2024 Sunday 11th
Woomera Secures Advanced Copper-Gold Project in Mongolia
Woomera Mining Limited (ASX: WML) has announced a significant step forward by securing a binding term sheet to earn a 100% interest in the Bronze Fox Copper-Gold Project, located in the world-class Southern Gobi copper belt in Mongolia.
Instant Summary:
- Woomera signs binding term sheet to earn-in to the Bronze Fox Copper-Gold Project.
- Project includes an Inferred Mineral Resource of 194.1 Mt of 0.2% Cu and 0.07 g/t Au.
- Woomera can earn an 80% interest by spending US$4 million, with an option to acquire 100%.
- Drilling program scheduled to commence in the September quarter.
- Firm commitments received for a $1.7 million share placement.
Project Overview
The Bronze Fox Copper-Gold Project spans 175 km² in the Southern Gobi porphyry belt of southern Mongolia, approximately 450 km south of the capital Ulaanbaatar. The project includes an Inferred Mineral Resource of 194.1 Mt of 0.2% Cu and 0.07 g/t Au, covering a small section of one of three large near-surface porphyry complexes.
Woomera has the potential to earn an 80% interest in the project by investing US$4 million over two phases, with an option to acquire the remaining 20% for US$10 million in cash and a 1% Net Smelter Royalty (NSR). The project is located near several world-class mineral deposits, including Oyu Tolgoi and Kharmagtai.
Drilling and Exploration Plans
Woomera plans to commence a comprehensive drilling program in the September quarter, targeting new greenfield and resource expansion areas. The project has already seen significant drilling activity, with approximately 46,625 meters of Reverse Circulation and Diamond Core drilling completed by Kincora.
The exploration will focus on high-priority targets, including the West Kasulu prospect, which has shown promising results such as 929m @ 0.37% CuEq from 343m, including 318m @ 0.53% CuEq from 515m. Other targets include Shuteen North, Buchanan Heights, Dunlop Fox, West Fox, and SW Kasulu.
Capital Raising
To support the exploration and development of the Bronze Fox Project, Woomera has received firm commitments for a $1.7 million share placement. Additionally, a $0.3 million Share Purchase Plan (SPP) will be offered to eligible shareholders. The funds raised will be used for the drilling program, tenement and operating costs, and working capital.
The share placement will be conducted in two tranches, with the first tranche allotment scheduled for 16 August 2024. The second tranche and the SPP will be subject to shareholder approval, with the SPP closing on 20 September 2024.
The acquisition of the Bronze Fox Copper-Gold Project positions Woomera as a significant player in the Southern Gobi copper belt. The project's substantial resource base and exploration potential could drive long-term growth for the company. The successful capital raising will provide the necessary funds to advance the project, potentially increasing investor confidence and positively impacting Woomera's stock price.
Investor Reaction:
Analysts have reacted positively to the news, highlighting the project's Tier-1 potential and strategic location near world-class deposits. The capital raising and planned drilling program are seen as strong steps towards unlocking the project's value. However, some caution remains due to the early-stage nature of the project and the inherent risks associated with exploration activities.
Conclusion:
Investors should closely monitor Woomera's progress with the Bronze Fox Copper-Gold Project, particularly the upcoming drilling program and resource updates. The company's strategic moves and successful capital raising efforts indicate a promising future, making it a stock to watch in the mining sector.