Breakthrough Minerals (ASX: BTM) intends to move quickly to target additional high-grade, shallow gold mineralisation at its newly acquired Errolls gold project in the prospective Murchison region of Western Australia.
The company has signed an agreement to acquire a 100% interest in Errolls, which has historical production of 5,000 ounces at 17.6 grams per tonne with limited modern exploration.
The deal includes exploration licence E57/996 and mining lease application M57/653, covering a series of high-grade gold zones in a proven gold exploration region.
Executive director Peretz Schapiro said the Errolls acquisition – which the company expects to complete in early June – was a company-making one for Breakthrough.
“The Errolls gold project delivers exactly what investors are looking for—shallow, high-grade gold with walk-up drill targets in a world-class jurisdiction,” he said.
“With historical drilling averaging just 34 metres depth and intercepts up to 51g/t gold, the opportunity to unlock extensions both down-dip and along strike is extremely compelling.”
To acquire the project from Kyarra Minerals, Breakthrough is paying a $50,000 non-refundable deposit upon execution and a further $100,000 cash fee when it completes the deal.
It is also issue 3.5 million shares to Kyarra at a deemed price of $0.075 per share and 2 million performance rights (exercisable into 2 million shares).
To fund the purchase, Breakthrough has received firm commitments to raise $1.2 million via a fully conditional placement to new and existing sophisticated investors.
Completion of the placement is subject to shareholder approval to be sought at an extraordinary general meeting (EGM) expected to be held in late May 2025.
Breakthrough has already submitted a program of work for the project, which sits adjacent to and on the same greenstone belt as Neometals’ (ASX: NMT) Barrambie gold project.
“We’re moving fast—with approvals already in place and drilling to commence immediately post-completion,” Mr Shapiro added.
“This acquisition not only enhances Breakthrough’s exploration profile but positions us to rapidly add value through the drill bit.”
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