Forrestania Resources Ltd (ASX:FRS) will strengthen its focus on Western Australian gold and copper projects after choosing not to proceed with an option to acquire the Koolyanobbing Fe Project through its holding company, Netley Minerals Pty Ltd.
Withdraws from Koolyanobbing
On allowing its option to acquire Netley Minerals Pty Ltd to lapse, the company has withdrawn from the Koolyanobbing Fe Project.
“Following results of the due diligence drill program on the Koolyanobbing Fe Project announced in August, the company has agreed with the vendors not to exercise the option to acquire Netley and its Fe project, chairman and interim CEO John Hannaford said
“The project scope, scale and potential has been downgraded significantly as a result of low-grade Fe (iron) results.
“The company assessed the results and revised target areas and the additional costs of continuing with the project and determined that it was no longer in the best interests of shareholders to continue.
“We are now focused on exploration at our existing gold and copper projects where drill programs are being planned for the coming quarter.”
About Forrestania
FRS’ flagship project is the namesake Forrestania lithium, gold and nickel project which is in close proximity to the Mt Holland Lithium Mine (189 million tonnes at 1.5% Li2O), the historic 1-million-ounce Bounty gold deposit and the operating Flying Fox and Spotted Quoll nickel mines.
This project covers 623 square kilometres and hosts numerous lithium targets, historical high-grade gold projects, and early-stage nickel geochemical anomalies.
The Southern Cross Project is in the Southern Cross Greenstone Belt and has significant potential for gold mineralisation.
Read: Forrestania Resources soars on returning gold samples of up to 49 g/t from Ada Ann Prospect
The company also holds the Eastern Goldfields Project within the Norseman-Wiluna Greenstone Belt of the Yilgarn Craton in WA, which recently generated strong rock chip samples of up to 49 g/t gold.