Parabellum Resources Ltd (ASX:PBL) will prioritise exploration opportunities at its NSW copper-gold projects after concluding its indirect interest in the Khotgor Project in Mongolio.
PBL has been hard at work in NSW, demonstrating strong exploration progress at its Redlands Project in the Tottenham-Girilambone district.
On November 14, the company received results from its maiden drilling program at the Miandetta-Redlands nickel-cobalt prospect.
PBL intersected high-grade nickel-cobalt mineralisation during the aircore drilling program in the eastern part of the Redlands Project
The following are highlights of the results from phase 1 aircore drill testing:
- RAC013 - 32 metres at 1.05% nickel and 0.07% cobalt from 2 metres;
- RAC017 - 20 metres at 0.82% nickel and 0.05% cobalt from 4 metres; and
- RAC019 - 8 metres at 0.86% nickel and 0.05% cobalt from 6 metres.
“The Miandetta-Redlands prospect area was identified by the company as having significant potential for hosting oxide near-surface nickel-cobalt mineralisation in August 2023,” Parabellum executive director Peter Secker said at the time.
“The drilling program completed last month has confirmed the potential of this area to host significant mineralisation and the results obtained thus far are considered very encouraging.
PBL now intends to continue exploration and development of its Miandetta-Redlands prospect along with its other NSW-based assets - the Recovery and Lunns Dam Project.
Drilling activities for Phase 2 at the Miandetta-Redlands prospect are slated to start in the first quarter of 2024. This follows a comprehensive 12-month work plan, with an allocated budget of approximately A$635,000.
The program encompasses a series of activities, contingent on the evaluation of results obtained from staged explorations. These include:
- planned drilling activities to further re-evaluate high nickel-cobalt values (approximately $300,000);
- preliminary laboratory metallurgical testwork on drill samples (approximately $80,000);
- preliminary modelling of nickel-cobalt assay data (approximately $30,000); and
- consultants and overheads (approximately $225,000).
Concluding interest in Khotgor
In January 2023, PBL completed its subscription for 30% of the issued share capital of Temarise Limited. This was followed a month later by Temarise exercising its exclusive option to acquire 80% of the Khotgor Rare Earths Project in Mongolia via the payment of the option exercise price of US$15 million.
Payment was required to be made on or before July 31, 2023 (having been extended from May 22, 2023).
The deadline for Temarise to pay the exercise price for the Khotgor Project was extended to facilitate discussions with involved stakeholders and to pursue financial negotiations with external parties.
However, due to the challenging conditions in the capital market, Temarise was unable to secure the necessary funding or financing for the exercise price. Consequently, their option to acquire the Khotgor Project has expired.
Parabellum has reported being unaware of any liabilities, penalties or potential disputes stemming from Temarise's failure to pay the exercise price, as the company is not a participant in the option arrangements.
Following the expiration of the option, Temarise and consequently Parabellum will no longer hold an interest in the Khotgor Project. This development leads to the cessation of all related activities and compels the company to write off its A$3.9 million investment in Temarise.
Eye on acquisition opportunities
As to continues its exploration program, PBL will be on the lookout for asset acquisition opportunities in the resource sector that align with its current projects.
The company is open to considering potential corporate and asset acquisition opportunities in the form of direct project acquisitions, joint ventures, farm-ins, acquisition of tenements/permits and/or direct equity participation.