Macro Metals (ASX:M4M) shares advanced 11.4% on Friday on news it has cleared the path for the granting of the exploration licence covering the Goldsworthy East Iron Ore Project in Western Australia.
The company says it has executed all the agreements necessary for the application for exploration licence E45/6365 to proceed to grant.
This includes striking an access agreement with mining heavyweight BHP (ASX:BHP), which is now in the process of withdrawing its objection to the granting of the licence.
Shares climbed to an intra-day high of $0.039 on Friday.
The Goldsworthy East licence sits next to BHP Iron Ore’s Goldsworthy Iron Ore Mine that produced 55 million tonnes at 63.5% iron ore between 1965 and 1982.
Macro Metals has also secured an exploration access agreement with Wanparta Aboriginal Corporation, an Aboriginal heritage protection agreement for exploration with Nyamal Aboriginal Corporation, an access deed with Pardoo Beef Corporation, and a state deed for grant of mining tenement with Nyamal Aboriginal Corporation.
Managing Director Simon Rushton says as soon as the state deed is received from the Ngarla People, Macro Metals will be in a position to request the WA Department of Mines to expedite the grant of the exploration licence.
The government allocates a four-month period to the right to negotiate process.
A heritage survey will be undertaken over the Goldsworthy East Project in July.
“This survey will clear the way for our inaugural drilling campaign, which we have scheduled to occur as soon as the exploration licence grants in early Q4,” Rushton says.
Macro Metals says a previous gravity survey undertaken by the company has defined two substantial targets.
The northern target is estimated to extend for 1,600m of strike and be around 200m wide with a depth extent of 450m, modelled to occur within 25m of surface.
The southern target is estimated to extend for 1,100m of strike and be around 215m wide with a depth extent of 400m, modelled to occur within 30m of surface.
No drilling has been previously undertaken on the tenure.
The Goldsworthy East Project is located less than 100km from the multi-user Utah Point Bulk Handling Facility in Western Australia’s Pilbara region.
Write to Angela East at Mining.com.au
Images: Macro Metals
