AustChina’s Expansion into High-Demand Metals Hinges on Exploration Success

Strategic Acquisition Broadens AustChina’s Resource Portfolio

AustChina Holdings Limited (ASX: AUH) has marked a significant milestone by completing the acquisition of Penwortham Exploration Pty Ltd, thereby securing 100% ownership of two highly prospective exploration projects in Tasmania. This move strategically expands AustChina’s footprint into gold, antimony, and copper commodities within one of Australia’s most prolific mineral belts.

The acquired assets include the Sulphide Creek Gold-Antimony Project, situated in the world-renowned Queenstown mining district, and the Mersey Volcanogenic Massive Sulphide (VMS) Base Metals and Gold Project, currently under application. Both projects lie in regions with rich mining histories and promising geological settings, offering AustChina exposure to high-demand metals.

Exploration Momentum Builds at Sulphide Creek

Following the acquisition, AustChina has mobilised a geological team with extensive Tasmanian experience to commence exploration activities at Sulphide Creek. The project area, covering 224 square kilometres, benefits from granted tenure and excellent infrastructure access, including proximity to roads, power, and a skilled local workforce.

Historical data indicates significant antimony mineralisation at the Rinadeena Prospect, with samples grading as high as 66.6% antimony and 1.05% lead. Additionally, multiple gold targets along the Harvey Creek fault system show potential for high-grade mineralisation, with historic workings reporting grades up to 14 g/t gold and mined material averaging 12 g/t gold.

Planned exploration includes detailed data compilation, LIDAR surveys to map historic workings and structural features, and litho-structural interpretation to refine drill targets. AustChina aims to commence drilling within six months, targeting both gold and antimony mineralisation models that could unlock significant value.

Mersey Project Poised for Advanced Exploration

The Mersey Project, covering 203 square kilometres in northwest Tasmania’s Mount Read Volcanics, is positioned in a geological setting analogous to world-class VMS deposits such as Hellyer and Rosebery. Although the exploration licence is pending grant, AustChina is preparing for extensive soil sampling, rock chip geochemistry, and airborne electromagnetic surveys to identify massive sulphide targets.

Historic exploration data and recent advances in understanding VMS systems provide a strong foundation for targeting base metals and gold mineralisation. The project’s proximity to active gold exploration by peers further underscores its potential.

Coal Licence Renewal and Corporate Strengthening

In Queensland, AustChina has submitted the renewal application for licence EPC 1719 at its Blackall Coal Project, maintaining its position in the coal sector. Meanwhile, the company has bolstered its governance by appointing Mr Jerko Zuvela, a seasoned resource industry executive with over 25 years’ experience, as an independent Non-executive Director. Mr Zuvela’s expertise spans exploration, project development, and corporate strategy across multiple commodities and geographies.

Financial Position and Outlook

The company’s quarterly cash flow report reveals ongoing investment in exploration and evaluation, with a net operating cash outflow reflecting active project development. AustChina is pursuing a share placement to strengthen its balance sheet and support upcoming exploration programs. Management expresses confidence in the capital raise’s success and the company’s ability to meet its business objectives.

Overall, AustChina’s recent activities signal a decisive step towards becoming a diversified mineral resources player with a focus on high-demand commodities in established mining jurisdictions.