Constellation Resources: A diversified explorer with a focus on Western Australia

Published 03/12/2024, 03:50 pm
Updated 03/12/2024, 04:30 pm
Constellation Resources: A diversified explorer with a focus on Western Australia
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With a focus that spans copper-gold, nickel-copper sulphides and natural hydrogen, emerging exploration company Constellation Resources Ltd (ASX:CR1) is taking a strategic approach to its portfolio, with the aim of capitalising on diverse opportunities in the energy transition and critical minerals sectors.

The company is committed to unlocking mineral wealth across a range of projects and commodities in Western Australia, with an eye on domestic and international opportunities to expand its resource assets pipeline, targeting growth in emerging and strategic markets.

Strong on copper-gold

The recently acquired Ularring Copper-Gold Project, northeast of Perth in the Yilgarn Craton, brings traditional base and precious metal heft to Constellation’s portfolio.

Ularring project location.

Ularring comprises tenements covering 187 square kilometres in a region known for large-scale intrusion-related copper-gold systems, similar to the Boddington Copper-Gold Mine and Caravel Copper Project.

The Centre Forest Prospect at Ularring has shown promising historical drill results, including intersections of 19 metres at 2.02 g/t gold and 0.16% copper.

This project offers significant potential to explore high-grade copper-gold zones along the Meenar Shear Corridor.

Ularring Project Location with regional geology (inset) over TMI aeromagnetics image displaying the Meenar Shear.

Drills primed for nickel sulphides

The company’s largest project by area, the Orpheus Project in the Fraser Range province includes five tenements covering some 340 square kilometres.

This area is renowned for its nickel discoveries and hosts mafic-ultramafic intrusions with potential for nickel-copper sulphide mineralisation.

The project includes a joint venture with Enterprise Metals Ltd (ASX:ENT), where Constellation holds a 70% stake and sole-funds activities over three of the five tenements.

At the Orpheus Project, soil sampling has identified promising nickel and copper anomalies alongside other pathfinder elements for nickel sulphides.

Promising targets have been picked out, with future exploration plans including aircore drilling to commence imminently to test prospective targets.

Natural hydrogen on horizon

Constellation is positioned as a first mover in natural hydrogen exploration in Western Australia, where it has been named the preferred applicant for six Special Prospecting Authorities with Acreage Option (SPA-AO) applications covering 56,192 square kilometres in Western Australia.

These first-mover applications target two basin-scale opportunities – the Edmund-Collier and Yerrida basins – considered highly prospective for natural hydrogen and helium.

The move comes as Western Australia positions itself as a leader in natural hydrogen development, following the passage of the Petroleum Legislation Amendment Bill 2023, which establishes a framework for exploring and incorporating natural hydrogen into existing gas pipelines.

The global demand for hydrogen is projected to increase fivefold by 2050, with growing interest in natural hydrogen as a zero-carbon energy source.

Natural hydrogen, sourced underground, offers a cost-effective alternative to grey hydrogen produced from natural gas, with the additional advantage of lower carbon emissions.

Its environmental benefits, including producing only water vapour when combusted, make it a promising greener energy source for the future.

Money in the bank

With a strong cash position of A$1.9 million and no debt as at September 30, 2024, Constellation maintains financial flexibility to advance its exploration programs.

To support ongoing exploration activities, the company, earlier this year, completed a successful capital raise, securing A$1.4 million from sophisticated investors and company leadership.

Read more on Proactive Investors AU

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