Critical Resources (ASX:CRR) completes acquisition of Cap Burn Gold Project, paving the way for high-impact exploration in New Zealand

Critical Resources Limited (ASX:CRR) has successfully completed the acquisition of the Cap Burn Gold Project, a high-potential asset located in the underexplored Otago region of New Zealand.

The project is situated just 11 km from OceanaGold’s Macraes Gold Mine, one of New Zealand’s largest and most established gold operations, and is poised to unlock significant exploration upside.

This acquisition enhances Critical Resources gold portfolio and positions the company for future growth in a geologically rich and highly prospective area.

With the completion of the acquisition and the finalisation of the land access agreement, the company is now prepared to commence the inaugural drilling program at Cap Burn, marking a pivotal step in its exploration strategy.

To provide further insight into the acquisition and its strategic significance, we spoke with Tim Wither, Managing Director of Critical Resources.

What is the strategic significance of the Cap Burn Gold Project acquisition for Critical Resources?

The Cap Burn Gold Project acquisition is a significant milestone for Critical Resources, enhancing its gold portfolio and expanding its footprint in one of the most prospective gold regions in the Southern Hemisphere.

The project’s location, just 11 km from OceanaGold’s Macraes Gold Mine, provides a clear strategic advantage, as the Macraes operation is home to over 10 million ounces of gold.

This proximity places Cap Burn within a proven and highly favorable geological corridor, with significant discovery potential.

“We are very pleased to announce the completion of the Cap Burn Gold Project acquisition, marking a significant step forward for Critical Resources in New Zealand. With Ministerial consent secured and land access agreement transfer finalised, we are now ready to commence our inaugural drilling program at Cap Burn. Our drill contractor Ecodrilling NZ is scheduled to mobilise to site in the coming weeks, ensuring rapid progress on exploration activities. We appreciate and acknowledge the support from all stakeholders for the permit transfer to be completed.”

The Cap Burn Gold Project’s geological setting, characterized by its arsenic-in-soil anomalies and structural features, aligns with those seen at neighboring world-class deposits such as the Macraes and Bendigo-Ophir gold projects.

This acquisition strengthens Critical Resources’ position in a highly prospective region, providing the company with a compelling exploration target in an underexplored area with significant upside potential.

What are the key milestones that Critical Resources expects to achieve in the near term for the Cap Burn Gold Project?

The immediate milestone for the Cap Burn Gold Project is the commencement of the inaugural RC drilling program, which is scheduled to begin in the coming weeks.

Ecodrilling NZ, the contracted drilling provider, will mobilize to the site and begin testing the arsenic-in-soil anomalies that have been identified during previous exploration work.

These anomalies are indicative of potential gold mineralization, and the drilling will focus on refining the geological model for the project.

Critical Resources has committed to providing regular updates as drilling progresses, ensuring that shareholders remain informed of developments.

In addition to the drilling program at Cap Burn, the company is working on the transfer of several other key exploration permits in the Otago and Reefton regions.

Once these transfers are finalized, field mapping and geochemistry programs will be launched, further expanding the company’s exploration footprint in New Zealand.

How does the Cap Burn project compare with other notable gold projects in the region, such as OceanaGold’s Macraes Mine and Santana Minerals’ Rise and Shine discovery?

The Cap Burn Gold Project is strategically located in a region renowned for its high gold potential. Just 11 km from the Macraes Gold Mine, which has produced over 10 million ounces of gold, the project benefits from being situated in a proven gold district.

The proximity to Macraes significantly enhances the attractiveness of Cap Burn, providing the company with the opportunity to explore an area with similar geological characteristics.

As outlined in the company’s announcement, the Cap Burn Project lies within a geological setting similar to that of Santana Minerals Rise and Shine deposit, which has grown to 2.3 million ounces.

The structural similarities, combined with the early-stage exploration results at Cap Burn, suggest that the project has significant potential for gold mineralization.

Previous exploration has already identified arsenic-in-soil anomalies, which are typically associated with gold mineralization in the region. Given these geological similarities, the Cap Burn project is positioned to deliver strong exploration results, potentially mirroring the success of nearby gold deposits.

What is the role of the land access agreement, and how does it support the upcoming exploration at Cap Burn?

The land access agreement is a crucial component in ensuring that Critical Resources can proceed with its exploration activities at Cap Burn without delays.

The agreement, which has been successfully transferred to Critical Resources, allows the company to carry out exploration activities, including the upcoming drilling program.

This agreement guarantees that exploration can proceed in an orderly and efficient manner, with minimal disruption to the local community or the ongoing farming operations in the area.

By securing this land access agreement, Critical Resources has ensured that the inaugural drilling program can begin without hindrances.

The company has been working closely with the landowner to ensure that exploration activities are conducted in a responsible and respectful manner, further strengthening its relationship with local stakeholders.

The agreement not only secures the necessary access for drilling but also lays the groundwork for future exploration work at Cap Burn and throughout the wider Otago region.

How does the Cap Burn acquisition fit into Critical Resources’ broader strategy and its commitment to shareholder value creation?

The acquisition of the Cap Burn Gold Project fits seamlessly into Critical Resources broader strategy of expanding its portfolio and providing shareholders with exposure to high-potential exploration targets in geologically favorable regions.

By acquiring a drill-ready project in the Otago region, Critical Resources is positioning itself for success in one of New Zealand’s most prospective and underexplored gold corridors.

As part of the company’s long-term growth strategy, Cap Burn adds to its expanding New Zealand portfolio, which also includes projects in the Otago and Reefton regions.

With its low holding costs and significant exploration upside, the acquisition provides shareholders with immediate exploration opportunities and positions the company for long-term value creation.

Critical Resources is committed to maximizing the potential of Cap Burn through systematic and responsible exploration, while continuing to engage transparently with stakeholders to ensure that all exploration activities are coordinated effectively.

“The geologically robust Cap Burn Project further strengthens Critical Resources gold portfolio, providing shareholders with exposure to a highly prospective, underexplored region adjacent to world-class deposits. Critical Resources is committed to responsible development and close engagement with local stakeholders, ensuring that exploration activities are coordinated seamlessly with ongoing farming operations. We look forward to updating shareholders as drilling begins and to advancing our strategy to deliver multi-cycle value across our global assets.”

Building value through strategic expansion

The completion of the Cap Burn Gold Project acquisition is a significant step forward for Critical Resources as it strengthens its position in the New Zealand gold sector.

With the strategic location of Cap Burn and its strong geological potential, the project presents an exciting opportunity for exploration success.

As drilling activities commence and exploration progresses, Critical Resources is committed to providing shareholders with regular updates and transparent communication.

This acquisition enhances the company’s growth trajectory and positions it for long-term value creation, with the potential for significant discoveries in one of New Zealand’s most prospective gold regions.

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