Jindalee Resources Ltd (ASX:JRL) is expanding its mining portfolio via the acquisition of an 80% stake in the nickel-copper-platinum group elements (PGE) Deep Well Project in the Murchison Province of the Eastern Goldfields of Western Australia.
Dynamic Metals Ltd, Jindalee’s 100%-owned subsidiary, has signed a Binding Term Sheet for the purchase of 80% in Deep Well from M61 Holdings Pty Ltd, for a total of $270,000.
Deep Well is complementary to Jindalee’s Widgiemooltha and Lake Percy nickel, lithium and gold projects, and will be part of Dynamic after its proposed listing.
Regional geology of the Deep Well Project
Part-cash, part-share deal
Dynamic will pay $70,000 in cash and $200,000 in Dynamic shares, based on the issue price of Dynamic’s pending listing on the Australian Stock Exchange and escrowed for 12 months, for the stake.
Results from early-stage exploration at the project showed geochemical indicators from gossans that are prospective for massive sulphide nickel, which have never been drill tested.
Dynamic will manage and fund the exploration at Deep Well to the completion of a definitive feasibility study.
Listing plans proceeding
The explorer plans to separate its Australian assets into Dynamic through an initial public offering of securities on the ASX have made significant progress.
Jindalee will seek shareholder approval for the transfer of the assets to Dynamic as soon as it receives final board and regulatory approvals.
Polymetallic mineral deposit
Deep Well is prospective for mafic intrusive related nickel, copper and PGE, with a more than 6-kilometre rock chip anomaly
Deep Well consists of granted exploration licence E 51/1977 and a contiguous tenement licence application E 51/2073, 35 kilometres east-southeast of Meekatharra.
The tenements cover the southern extension of the Gnaweeda greenstone belt (GGB) east of the Meekatharra greenstone belt in the Murchison Province.
The GGB comprises several mapped greenstone enclaves extending over a strike of more than 30 kilometres along the Evansdale-Edale Shear Zone, a crustal-scale structural break with a strike length of several hundred kilometres between the Murchison and Southern Cross Domains within the Youanmi Terrane.
GGB is up to 10 kilometres wide in the northern part of the belt, decreasing to less than 1 kilometre wide to the south and within the area covered by the tenements. Surface geology is extremely weathered and is concealed by transported cover in places.
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