Metal Hawk Limited reports exceptional high-grade gold discoveries at its Leinster South Project, alongside a successful $2.5 million capital raise, setting the stage for imminent drilling activities.
- High-grade gold assays up to 84 g/t at Leinster South prospects
- New Thylacine prospect reveals multiple stacked quartz veins
- Heritage agreement signed enabling maiden drilling program
- $2.5 million raised through strongly supported placement
- 70% sale of Kanowna East project to Accelerate Resources completed
Exploration Breakthroughs at Leinster South
Metal Hawk Limited (ASX: MHK) has delivered a compelling update for the December 2024 quarter, highlighting a series of high-grade gold discoveries at its Leinster South Project in Western Australia. The company’s field activities have yielded rock chip samples with gold grades soaring as high as 84 g/t, notably at the Tyson's prospect, and multiple assays exceeding 20 g/t across the newly identified Thylacine prospect.
The Thylacine prospect stands out as a fresh and promising target, featuring multiple stacked quartz veins extending over at least 300 metres of strike. These veins exhibit mineral assemblages and pathfinder elements akin to those at the Siberian Tiger prospect, where Metal Hawk previously reported significant gold mineralisation. The recent sampling results at Thylacine, including assays up to 62.3 g/t Au, suggest a potentially richer mineralised system than Siberian Tiger, which itself now boasts an extended strike length of over 800 metres.
Strategic Moves and Financial Strength
On the corporate front, Metal Hawk successfully raised $2.5 million through a placement priced at $0.20 per share, bolstering its cash position to $3.6 million at quarter’s end. This capital injection is timely, underpinning the company’s planned maiden reverse circulation (RC) drilling program at Leinster South, contingent on the completion of a heritage clearance survey scheduled for the first quarter of 2025.
In a strategic portfolio adjustment, Metal Hawk divested 70% of its Kanowna East project to Accelerate Resources Limited (ASX: AX8), retaining a 30% free carried interest through to the completion of a pre-feasibility study. This move allows Metal Hawk to concentrate its resources and exploration efforts on the highly prospective Leinster South tenure.
Looking Ahead: Drilling and Target Generation
With the heritage agreement now in place with the Watarra Aboriginal Corporation, Metal Hawk is poised to commence an extensive drilling campaign. The program will focus primarily on the Siberian Tiger and Thylacine prospects, with plans to clear over 25 traverses to enable systematic testing of priority gold targets. Concurrently, the company is advancing regional target generation through detailed geophysical analysis and review of historical data across its 430 square kilometre tenure.
While the Berehaven and Yarmany projects remain part of Metal Hawk’s portfolio, exploration activity has been deprioritised in favor of Leinster South’s burgeoning potential. The company’s disciplined approach to capital allocation and project focus reflects a strategic pivot towards unlocking value from its most promising assets.
Bottom Line?
Metal Hawk’s strong assay results and capital raise set a robust foundation, but the market will keenly watch the upcoming drilling outcomes to validate this high-grade potential.
Questions in the middle?
- Will the maiden drilling at Leinster South confirm the extent and continuity of the high-grade gold zones?
- How will the sale of Kanowna East impact Metal Hawk’s long-term growth strategy and cash flow?
- What new targets might emerge from the planned geophysical and historical data reviews across the 430km2 tenure?