Macro Metals (ASX:M4M) reports drilling at its Goldsworthy East Iron Ore Project and initial drilling at the Wandanya Manganese Project “did not intersect mineralisation of consequence”.
Managing Director Simon Rushton says he has no doubt these results will be disappointing for shareholders – himself included.
However, Rushton notes that while very disappointing, these results reinforce the decision the board made to pivot the company from a pure play exploration company to a mining services company with a portfolio of exploration assets that will be evaluated using profits derived from mining services rather than continuing to dilute shareholders to fund exploration.
“When the new board joined the company in March 2024, the Goldsworthy East asset had been sitting in a stalemate due to underlying tenure objections and lack of engagement with traditional owners,” says Rushton.
“Within a matter of weeks, we had the objection withdrawn by consent, a pastoralist agreement executed along with two heritage agreements and two State Deeds to see the tenement granted, consistent with our approach to unlock and evaluate assets as soon as possible. We used all available resources including magnetics, gravity survey and field mapping to determine the drilling targets however we have not discovered any commercially viable mineralisation at Goldsworthy East.
“Similarly, at Wandanya, we completed the farm-in transaction in mid-October 2024, and within 4 weeks of completion we had a heritage agreement with the Nyamal People in place, completed a heritage survey and a preliminary flora and fauna survey in order to undertake inaugural drilling of the Crossroads Prospect in November 2024.
“We have been extremely disciplined in our approach to drilling on both projects and have spent the bare minimum necessary to evaluate the tenement and determine that no further expenditure is warranted in the immediate future. We will certainly look to review the position with respect to Wandanya once we have generated profits from our mining services division so as to avoid any further dilution for shareholders.
“I am extremely grateful for the efforts of the Macro team in working safely and diligently on this exploration programme as well as to our partners at Rapallo, RSC, K-Drill and Francisco Brown and the heritage team at Wanparta in respect of Goldsworthy East and Kellie Hill of Agreement Hub and the Nyamal Aboriginal Corporation in respect of Wandanya.
“The outcome at Goldsworthy East and the early indications from Wandanya, while very disappointing, reinforces the decision the board made to pivot the company from a pure play exploration company to a mining services company with a portfolio of exploration assets that will be evaluated using profits derived from mining services rather than continuing to dilute shareholders to fund exploration. Over the past 10 weeks we have laid the foundations to grow our mining services offerings in the shortest order of time and I am very much looking forward to a busy and profitable 2025. I take this opportunity to thank our shareholders for their support and I look forward to a safe, exciting and rewarding year ahead.”
Macro owns directly a portfolio of iron ore and manganese assets which are undergoing active exploration programs, with the aim of providing future production opportunities.
Separately, through its wholly owned subsidiary, Macro Mining Services (MMS), the company offers bespoke, safe and highly value accretive mining services across a range of commodity groups and through the entire pit to customer supply chain, including mining, crushing and screening, processing, haulage, ship loading and shipping services.
Write to Adam Orlando at Mining.com.au
Images: Macro Metals
