Recharge Metals (ASX:REC) has entered a binding agreement to wholly acquire the Sunset Well Project, which comprises 10 granted prospecting licences, 15 prospecting licence applications, and four exploration licence applications, for a total of 181km2, in the heart of the Leonora gold district.
Included in the Sunset Well project is the Prospero Deposit, which hosts a shallow inferred mineral resource of 2.87 million tonnes @ 1 gram per tonne gold for 94,500 ounces of gold.
The company notes the potential at Prospero, which has not been drilled since the 1990s and remains open along strike and at depth.
Representative ‘high-grade’, near-surface intercepts at Prospero demonstrate strong continuity and scale potential.
Key highlights include 36m @ 2.73g/t gold from 32m, including 16m @ 5.39g/t gold from 36m; 8m @ 4.02g/t gold from 28m, including 2m @ 8.3g/t gold from 28m, and 2.9m @ 6.35g/t gold from 101.9m, including 0.8m @ 21.7g/t gold from 101.9m.
Sunset Well also includes the Flanders Shear Zone, which has returned multiple historical gold intercepts from limited exploration. Gold mineralisation at Flanders also remains open at depth and along strike.
Managing Director Felicity Repacholi says that the acquisition of Sunset Well provides the company’s investors with immediate exposure to the current strong gold environment.
“Located in the heart of the Leonora gold district, Sunset Well represents an advanced exploration asset anchored by the Prospero Deposit,” Repacholi says.
“The project hosts a near-surface, 94,500 ounce gold resource, which remains open at depth and along strike and has not been drilled since the 1990s.
“The broader tenement package presents compelling brownfields and greenfields potential, with multiple high-grade historical drill results yet to be followed up.”
Recharge notes that Sunset Well is in a prime gold jurisdiction and is well serviced by regional infrastructure. There are seven operation gold processing plants within 100km of the site.
The company has drilling preparations already underway, with drilling to commence following the completion of the transaction and all remaining approvals are complete.
Alongside this acquisition, Recharge has received firm commitments for a $3.75 million placement, with the proceeds to be used to fund the drilling program at Sunset Well as well as general working capital.
Recharge has also bolstered its board of directors, with new technical and corporate capability to accelerate exploration and growth at Sunset Well.
Repacholi notes that new directors Samuel Ekins and Ben Jones have been brought to the board, alongside new Technical Advisor, Brett Keillor.
“The addition of these highly accomplished individuals brings a strong blend of strategic and operational expertise to unlock value at Sunset Well.
“With a strengthened team and a funded exploration program in place, we look forward to commencing drilling at Sunset Well shortly and updating shareholders with consistent technical progress.”
Recharge will be focused now and advancing exploration at Sunset Well with an immediate field reconnaissance program and validation of historical drilling. Reverse circulation and aircore drilling programs will also test priority extensions at Prospero.
The company notes that the acquisition of Sunset Well provides them with the opportunity to grow a gold exploration portfolio within one of Western Australia’s most productive gold regions.
Recharge Metals also has a portfolio of uranium projects in the US and Canada, and the Brandy Hill South copper project in Western Australia.
Write to Amy Rotman at Mining.com.au
Images: Recharge Metals
