Mantle Minerals Ltd (ASX:MTL) Carlton Hill Project expanded with acquisition of Far West Metals

Mantle Minerals Ltd has announced it has entered into a binding agreement to acquire 100% of Far West Metals Ltd and its 100% owned tenement E80/6134, which is adjacent to the Company’s existing Carlton Hill Project in the northern Bonaparte Basin.

The Company also reported the grant of Exploration Licence E80/6170 by the Western Australian Department of Mines, Petroleum and Exploration, which enables on ground exploration activities across the Carlton Hill Project area including mapping, sampling and target generation for carbonate hosted lead zinc silver mineralisation.

Highlights

• Binding agreement to acquire 100% of Far West Metals Ltd
• Far West Metals holds tenement E80/6134 adjacent to Carlton Hill Project
• Exploration Licence E80/6170 granted by Western Australian authorities
• Carlton Hill Project located in northern Bonaparte Basin near Kununurra
• Located in same stratigraphic setting as Sorby Hills Pb Zn Ag deposit
• Historical exploration includes identification of 44 structural anomalies by Mincor
• Transaction completed through nominal consideration and loan assignment structure

The Carlton Hill Project is located approximately 50 kilometres north of Kununurra within the northern Bonaparte Basin, and the announcement states that the project lies within the same stratigraphic setting as the Sorby Hills Pb Zn Ag deposit, which is located approximately 35 kilometres west of the new Mantle tenure.

The Sorby Hills deposit is reported to contain a mineral resource estimate of 47.3 million tonnes at 3.1% lead, 0.4% zinc and 35 g/t silver.

Historical exploration referenced in the announcement includes work completed by Mincor in 2009, which identified 44 distinct structural anomalies across the broader area, including within the new tenure.

The announcement also notes that Mincor previously undertook a partnership with Japanese state backed JOGMEC to target zinc and indium, and completed a heliborne VTEM geophysical survey designed to penetrate alluvial cover.

The announcement states that subsequent changes in exploration focus resulted in unresolved targets remaining within the area now held by Mantle.

The transaction terms disclosed by Mantle include the acquisition of 100% of shares in Far West Metals Ltd for nominal consideration of $300.

The announcement also states that an outstanding loan of approximately $250,000 owed by Far West Metals to a third party is assigned to Mantle, with consideration of $100,000 paid to the third party.

The Company states that the transaction results in ownership of Far West Metals alongside a reduction in liabilities relative to face value.

Exploration Licence E80/6170 has been granted by the Western Australian Department of Mines, Petroleum and Exploration.

The announcement states that this enables the commencement of on ground exploration activities across the Carlton Hill Project, including reconnaissance mapping, geological sampling and target generation programs designed to assess carbonate hosted lead zinc silver mineralisation potential.

Mantle Minerals Non Executive Director Robert Mosig said:

“The acquisition of E80/6134 and grant of E80/6170 now consolidates and significantly strengthens Mantle’s ground position at Carlton Hill. The tenements have inconclusive historical base metals exploration and are considered highly prospective for additional base metals occurrences given the proximity to the Sorby Hills deposit. With an expanded and contiguous landholding, Mantle now has a top tier copper lead zinc silver exploration target area to address in much needed greater detail.”

The announcement further states that exploration activities planned across the project include reconnaissance mapping, geological sampling and target generation programs across the expanded tenure package.

These activities relate to assessment of carbonate hosted lead zinc silver mineralisation potential within the Carlton Hill Project area.

Overall, the disclosure provides details of a tenement acquisition, a granted exploration licence, historical exploration activity in the region, and planned early stage exploration programs within the Carlton Hill Project area as set out in the announcement.

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