VANCOUVER, BC, Jan. 13, 2022 /CNW/ - Essex Minerals
Inc. (the "Company") (TSXV: ESX) (OTCQB: ESXFM) (FRA:
EWX1) is pleased to announce that has entered into binding terms
with First Au Limited (ASX: FAU) ("FAU"), a company listed on the
Australian Stock Exchange, for an arm's length option, earn-in and
acquisition of the Mt Turner project in north Queensland, Australia, where preliminary
exploration by the Company has outlined a very large
copper-molybdenum (with gold and silver) porphyry target.
Highlights
- Upon execution of a formal agreement once certain conditions
are met, FAU shall pay Essex an
Option Fee comprising 5,000,000 fully paid ordinary FAU shares and
5,000,000 two-year share purchase options exercisable at AUD$0.03
per option and within 220 days fund a minimum AUD$500,000 on
exploration of the Mt Turner Project, including a detailed induced
polarization program over the main Mt Turner mineralized anomaly.
Payment of the Option Fee is conditional on 60 days due diligence
by FAU, completion by Essex of its
share purchase of KNX Resources Limited, signing of a formal
agreement, and TSX Approval (if required).
- Subject to completing the minimum expenditure during the Option
period and their willingness to proceed, FAU shall pay Essex a further 10,000,000 fully paid ordinary
FAU shares and then shall have the right to earn a 51% interest in
the Mt Turner project by spending a further AUD$2,000,000 on
exploration over two-years from exercise date of the Option.
- At completion of the earn-in, FAU shall then have the right to
acquire the remaining 49% interest in Mt Turner by issuing to
Essex either 49% of the equity in
a special purpose vehicle formed to hold the Mt Turner project, or
that number of shares in FAU equivalent to an independent valuation
of the 49%.
- Essex shall retain a 1.5% net
smelter return royalty over the project, which FAU can acquire for
the payment of AUD$3,000,000 cash.
- FAU considers Mt Turner a strategic acquisition that
complements the Australian explorer's existing copper prospects of
Dogwood in Victoria and
Mabel Creek in South Australia.
Essex Minerals President and CEO Paul
Loudon: said: "Copper is expected to play a critical role in
the electrification of the global economy and the transition to
green energy. An independent report by Goldman Sachs last year
indicated the worldwide demand for copper for transitioning to
green energy alone will increase from under 1Mt in 2020 to
approximately 5.4Mt by 2030 (16% of total global copper
demand).
"We are very pleased that our initial exploration has
demonstrated the potential for the discovery of a large
copper-molybdenum (with silver and gold) deposit at Mt Turner and
resulted in favourable option, earn-in and acquisition terms with
FAU.
"Having incubated the project with initial exploration
expenditure, Essex is now
leveraging its position in the project by joint venturing the next
round of exploration expenditure then monetizing the project with a
spin out or sale.
"This project incubation then spinout, particularly where we can
retain a royalty and a right to provide stream or project finance,
is fundamental to the Company's business growth model."
On October 26, 2021, the Company
reported as follows:
Summary Geology and Mineralization of the Mt Turner
Project
The Mount Turner Property lies in the western portion of the
Georgetown Inlier, which constitutes the bulk of the proclaimed
Etheridge Goldfield. It consists of
variably metamorphosed and deformed sedimentary and volcanic rocks
of Palaeo- to Mesoproterozoic age, intruded by Mesoproterozoic
granites.
The Proterozoic rocks have been intruded by Siluro-Devonian age
granitic rocks during a period of subduction and underplating that
is thought to have occurred during the Tabberabberan cycle of the
Tasman Orogen (ca 430-380 Ma).
The Georgetown Inlier subsequently experienced a period of
felsic intrusion and accompanied sub-aerial volcanism during the
Carboniferous to Permian period (ca 350-230 Ma) associated with
extension and rifting that developed during the Hunter-Bowen cycle
of the Tasman Orogeny. This magmatism is termed the Kennedy
Association, which consists of widespread and voluminous extrusive
and intrusive igneous rocks, producing a number of large volcanic
subsidence structures. This magmatic event was responsible for the
5 million-ounce Kidston gold deposit located some 70 kilometres to
the SE of Mt Turner.
The Permo-Carboniferous Mt Turner intrusive complex, which is
centred within the property, consists of multiple phases of
rhyolite to micro-granodiorite dykes, stocks and associated
breccias, hosted by Meso-Proterozoic Mount Turner Granite and
metasediments of the Palaeo-Proterozoic Lane Creek Formation. The
overlying subaerial volcanics are postulated to have preserved the
porphyry-style mineralisation.
The property was initially examined during the 1975 field season
by geologists of the Australian Government's Bureau of Mineral
Resources (now Geoscience Australia) and the Geological Survey of
Queensland after discovery of
extensive hydrothermal alteration around Mt Turner.
The subsequent report (Baker & Horton, 1982) described the
intrusive complex as a porphyry copper- molybdenum system with
zoned polymetallic mineralisation. The report was based on 11
widespread, shallow vertical drill holes, <100 metres in depth
and four diamond holes, only one of which was located near the
intrusive centre. None of the drill holes were assayed in their
entirety.
A portion of Mt Turner was held by Kidston Gold Mines ("KGM") in
1994-1998 and assessed for gold only, then held by Mega Uranium in
2006-2007 and explored for uranium. No follow-up exploration has
been undertaken on the porphyry copper-molybdenum potential
identified in the 1970s until the ground was staked in 2019 by KNX
Resources Limited ("KNX") and subsequently joint ventured to
Essex in 2020.
Essex and KNX each own 50% of
the Mt Turner property. On September 22,
2021, Essex announced that
it had agreed to acquire all the issued and outstanding shares in
KNX in exchange for the issuance of 5,000,000 ordinary shares and
5,000,000 two-year share purchase warrants in Essex to the shareholders of KNX. The purchase
is subject to the approval of the TSX Venture Exchange. On
completion of the acquisition, Essex will own 100% of Mt Turner.
Exploration results to date by Essex-KNX Joint
Venture
The ESX-KNX Mt Turner Property comprises two granted exploration
permits totaling approximately 100 sq km.
Soil sampling in a 100m x
100m grid by KGM (2,336 minus 80 mesh
and 2,462 BCL samples) and Essex
(719 samples) has outlined a 4km x 4km soil anomaly which shows
classic Cu-Mo zonation – copper in soil flanking a molybdenum core
(See Figure 1). This area is sufficient to contain a very large
(+500Mt) deposit.
An aeromagnetic survey (100m
flight lines) flown by Mega Uranium in 2006-7 shows a curvilinear
NW trending magnetic low corresponding to magnetite destruction
alteration, with complex magnetite highs in the centre, which is
the classic copper porphyry around a molybdenum rich core signature
(See Figure 2). The features in the magnetics are coincident with
the copper and molybdenum soil anomalies.
Gold-silver and base metal soil anomalies occurs on the
periphery of the copper-molybdenum core zone associated with
breccia bodies at Balaclava Hill, immediately to the north west of
Mt Turner, in major faults such as the 14 km Drummer Hill Fault,
and in association with historically mined, high-grade Ag-Pb-Zn
veins. The peripheral breccias and Drummer Fault remain excellent
targets for gold mineralization.
Rock samples collected during detailed mapping by Essex field team demonstrate the property has
been subjected to multi-phase intrusive events which provides the
potential for multi-stage mineralization episodes, therefore
potential for higher grades.
One Queensland Government drill hole (NS4) to 295m in 1977 drilled peripheral to the porphyry
target ended in near ore grade mineralization – 0.187% Cu, 0.075%
Mo.
Re-logging of the core from this hole by Essex has shown multi-lithological intrusive
clasts in breccia at depth which also suggest a poly-phasal
intrusive history.
The re-logging has also demonstrated early widespread potassic
alteration then an overprinting phyllic event (sericite) then a
late stage second potassic event associated with multi-stage vein
mineralization. This pattern of alternation conforms to the classic
model for multi-stage mineralization. The later stage second
potassic event towards the end of the hole also suggests that the
hole ended above the main mineralization target zone.
The next phase of exploration will involve detailed ground
geophysics to define the targets ahead of an initial drilling
program.
About Essex
Essex Minerals is an exploration and development company focused
on mineral exploration and mine development and finance
opportunities where it can adopt an option earn-in and joint
venture model. The company identifies geological teams that have
already expended the time and capital to assemble top quality,
advanced projects, with a particular emphasis on gold projects in
Tier 1 jurisdictions, where the Company can earn an interest by
funding exploration. Management's time is shared across several
different projects, as the geological teams already in place at the
project level manage the approved exploration and development
programs. This strategy has the potential to accelerate the
growth in shareholder value for Essex by earning an interest in a range of
projects of merit in a much shorter time frame than otherwise would
be possible.
Qualified Person
All of the scientific and technical information contained in
this news release has been reviewed and/or prepared by Mr
Lee K. Spencer, BSc (Hons), MSc,
MAusIMM, a "Qualified Person" within the meaning of National
Instrument 43-101 - Standards of Disclosure for Minerals
Projects.
ISSUED ON BEHALF OF ESSEX
MINERALS INC.
Paul Loudon
President & CEO
www.essexminerals.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Essex Minerals Inc