Larvotto Resources (ASX:LRV) has completed an $8 million acquisition to secure the Hillgrove Gold-Antimony Project in New South Wales from former ASX-listed Red River Resources.
The company says this acquisition has transformed it from an explorer to a developer with a substantial Mineral Resource Estimate (MRE) of 1.4 million ounces (Moz) of gold equivalent (AuEq) with a grade over 6 grams per tonne (g/t) AuEq, containing the ‘largest’ critical mineral antimony deposit in Australia.
Now, Larvotto plans to immediately begin increasing Hillgrove’s resource base while converting the current measured and indicated resources into JORC ore reserves.
Larvotto plans to conduct drilling to infill work to expand a ‘high-priority’ exploration target, with 2022 drilling results having shown the potential for defining a ‘high-grade’ gold deposit at Baker’s Creek.
The company says this acquisition supports its growth strategy to seek accretive opportunities to increase its metals resource base.
In tandem with the acquisition, Larvotto has today (19 December) announced that its entitlement offer announced back in October raised $2.74 million. Under the offer, eligible shareholders were able to buy one new share for every 2 shares held at $0.07 per share.
Larvotto Resources Managing Director Ron Heeks says this acquisition provides the company with ‘significant’ exposure to antimony, which is an ‘in-demand critical metal’ in many countries.
“The potential to significantly increase resource tonnes and grade in the near term at Hillgrove has been demonstrated by exploration success in 2022 that produced exceptionally high gold intersections just below the current resource.
Importantly, over 65% of the current resource is in the JORC measured and indicated categories and is available to rapidly move into a JORC ore reserve.
With over 15km of underground mine development in place and an operation plant onsite, there is a very high level of understanding of the tasks required to develop the project. Initial focus will be to demonstrate that there is significant upside to the current resource.
We are eager to get on-site at Hillgrove and kick off our extensive exploration plans as soon as we can in early 2024.”
“Importantly, over 65% of the current resource is in the JORC measured and indicated categories and is available to rapidly move into a JORC ore reserve”
The Hillgrove Project covers 254km-square, comprising 52 tenements with 48 granted mining leases. The project lies 23km east of Armidale in northern New South Wales.
Larvotto Resources is a diversified minerals explorer and developer with assets across Australia and New Zealand.
As of 30 September 2023, the company had $1.605 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Larvotto Resources
