Resolution Minerals to acquire high-grade antimony and gold assets in Australia

Resolution Minerals Ltd has entered into a binding agreement to acquire three exploration projects in New South Wales and Queensland, expanding its footprint in high-grade antimony, gold, and copper. The acquisition includes the Drake East Antimony-Gold Project in New South Wales, the Neardie Antimony Project in Queensland, and the Spur South Gold-Copper Project in New South Wales. This move is particularly significant as antimony prices have surged due to global supply constraints, particularly following China’s export ban on the metal.

Why Antimony Matters in Today’s Market

Antimony, a critical metal used in battery technology, flame retardants, and military applications, has seen a dramatic price increase of 250% in 2024. The supply chain has faced disruptions, with China historically controlling the majority of global production. With this acquisition, Resolution Minerals aims to secure a position in the growing antimony market while also strengthening its gold and copper exploration portfolio.

The Neardie Project stands out for its historical high-grade antimony production, with peak values reaching 19.5%. The company’s exploration strategy includes reviewing previous data, identifying drill targets, and potentially reopening past-producing mines in a short timeframe. The Drake East Project, known for its gold and silver occurrences, has also demonstrated strong antimony potential, with recorded peak values of 5.72% antimony and 60.9 grams per tonne (g/t) gold.

Exploring the Potential of Drake East

Drake East is located near an active gold-copper project managed by Legacy Minerals Holdings Ltd. The project covers a strike length of over 15km and hosts multiple known antimony occurrences. Notably, the Mosquito Creek Antimony-Gold Reef and the Ball & Smiths Lode have been identified as significant mineralised zones. These areas have historically produced high-grade samples, including assays of up to 214 g/t silver and 0.38 g/t gold.

Resolution Minerals plans to implement systematic exploration programs, including geophysical surveys, geochemical sampling, and drilling campaigns, to evaluate the site’s potential. Given its proximity to other high-grade mineral deposits, Drake East represents a strategic addition to the company’s portfolio.

Neardie Project: A Historic Antimony Producer

Located near Gympie, Queensland, the Neardie Project hosts three historic antimony mines with a history of intermittent production since the 1890s. The primary ore mineral, stibnite (Sb₂S₃), has been mined from lodes reaching up to 4.5m in thickness. Sampling from underground mining operations has returned high antimony grades, with one bulk sample averaging 2.49% Sb.

Previous exploration efforts identified additional ore shoots, suggesting further upside potential for new discoveries. Resolution Minerals believes that significant extensions of high-grade antimony deposits exist within the project area, both along strike and at depth.

Spur South: Targeting Gold-Copper Mineralisation

The Spur South Gold-Copper Project is located within the Macquarie Arc, a highly mineralised belt known for hosting world-class porphyry deposits. The region is home to major gold-copper operations, including Newmont’s Cadia Valley, Evolution Mining’s Cowal, and Alkane Resources’ Boda deposit.

Spur South hosts a large magnetic anomaly, similar in scale to other mineralised systems in the region. Despite being surrounded by major discoveries, the area remains underexplored, presenting significant opportunities for future exploration. Resolution Minerals intends to leverage geophysical and geochemical data to define new drill targets and assess the project’s economic potential.

Key Terms of the Acquisition

Resolution Minerals will acquire a 100% interest in the exploration projects from the existing tenement holders. The transaction involves the issuance of 25 million ordinary shares at a deemed price of $0.01 AUD per share, along with a cash payment of $70,000 AUD. The share issuance will be completed in two tranches, with half allocated upon settlement and the remainder after due diligence. The shares will be subject to escrow conditions to ensure long-term value for shareholders.

Strategic Outlook and Next Steps

With the acquisition of these projects, Resolution Minerals is positioning itself as a key player in the critical metals and gold exploration sectors. The company aims to fast-track exploration and resource definition efforts, focusing on high-priority drill targets.

Given the rising global demand for antimony, gold, and copper, the company’s latest acquisitions could offer significant upside potential. By securing high-grade assets with a history of production, Resolution Minerals is taking a strategic approach to resource development, aiming to deliver value to shareholders in the near term.