Accelerate Resources Secures Kanowna East Gold Project with $1.35M Capital Raise

Strategic Acquisition Near Kalgoorlie

Accelerate Resources Limited (ASX: AX8) has taken a significant step in its new gold strategy by executing a Heads of Agreement to acquire a 70% interest in the Kanowna East Gold Project, located just 25 kilometres from the renowned Kalgoorlie Superpit and 9 kilometres east of the Kanowna Belle gold mine. This acquisition places Accelerate in a prolific gold region of Western Australia, offering access to multiple processing plants with toll milling services, a key factor in reducing time and cost to production.

The project tenure encompasses nearly 100 square kilometres, including three granted exploration licenses and one prospecting license, with an additional 100% owned licence application covering 5 kilometres of highly prospective strike along the Scotia-Kanowna Dome. This area has been carefully selected following extensive due diligence, highlighting its potential to host significant gold mineralisation.

Encouraging Historical Drilling Results

Historical drilling by Metal Hawk Limited, the current joint venture partner, revealed notable gold intercepts at the Little Lake and Western Tiger prospects within the Kanowna East Project. Highlights include intercepts such as 4 metres at 17.7 grams per tonne gold and multiple other assays exceeding 1 gram per tonne over several metres. These results suggest the presence of paleo-surface and basement gold mineralised systems, with Accelerate's technical team drawing parallels to the nearby Garden Well deposit, a +3 million ounce Archean orogenic gold system.

Accelerate plans to commence field mapping and geochemical sampling in early February 2025, followed by a first phase of exploration drilling scheduled for the second quarter. The company aims to test models that could unlock high-grade basement gold mineralisation beneath the paleochannel cover.

Lithium Potential at Mt Sholl East

Beyond gold, Accelerate has identified lithium-bearing spodumene minerals at its Mt Sholl East Project in the Pilbara region. Recent mapping and rock chip sampling uncovered numerous pegmatites and granitic dykes, with spectral analysis confirming spodumene presence. While initial assays have not yet returned significant lithium grades, the discovery enhances the project's exploration potential, especially given its geological setting adjacent to the Mt Sholl Shear Zone and proximity to Azure Minerals’ Andover lithium discovery.

Planning is underway for a phase 2 diamond drilling program at the Prinsep Lithium Project, targeting down-plunge extensions of lithium mineralisation and newly defined geochemical anomalies. Permitting for this program is being finalised.

Capital Raise and Corporate Developments

To support its accelerated exploration activities, Accelerate successfully raised $1.35 million from professional and sophisticated investors, with funds earmarked for the Kanowna East Project. This capital injection follows a period of careful project evaluation and aligns with the company’s strategy to acquire underexplored, prospective gold assets near existing infrastructure.

On the corporate front, the company announced the resignation of founding director Ms Yaxi Zhan, who will assist with transitional matters and divestment of non-core assets. Accelerate acknowledged her contributions and wished her well in future endeavours.

Financial Position and Outlook

As of December 31, 2024, Accelerate held approximately $484,500 in cash. The company reported $140,000 spent on project evaluation and exploration during the quarter, with payments to related parties totaling $114,000 for director and consulting fees. Despite a cash runway of just over one quarter at current expenditure levels, the recent capital raise is expected to extend operational funding and enable the planned exploration programs.

Accelerate is also actively evaluating commercialisation opportunities for its Woodie Woodie North Manganese Project and pursuing joint venture discussions for the Comet Gold Project in the Murchison region.