Errolls Tenement Fine Looms as Acquisition Awaits Shareholder Approval

Regulatory Clearance Paves Way for Acquisition

Breakthrough Minerals Limited (ASX: BTM) has taken a significant step forward in acquiring the Errolls Gold Project in Western Australia's Murchison region. The Western Australian Department of Energy, Mines, Industry Regulation and Safety (DMIRS) confirmed that the forfeiture application on the project's key tenement, E57/996, has been resolved through a fine of A$17,159 payable by the current owners and vendors. This resolution removes a major regulatory uncertainty that had threatened the project's tenure.

The fine must be paid by 24 June 2025 to avoid forfeiture, but Breakthrough plans to settle this immediately after securing shareholder approval at the Extraordinary General Meeting scheduled for 30 May 2025. The fine amount will be deducted from the outstanding cash consideration payable to the vendors, streamlining the acquisition process.

Acquisition and Funding on Track

The acquisition is supported by a A$1.2 million placement intended to fund completion and initial exploration activities. Breakthrough’s Executive Director, Peretz Schapiro, described the Errolls project as a "company-making acquisition," highlighting its shallow, high-grade gold deposits and walk-up drill targets in a globally respected mining jurisdiction.

Historical drilling at Errolls has been relatively shallow, averaging just 34 metres, but with impressive gold grades reaching up to 51 grams per tonne. This leaves considerable potential to extend mineralisation both down-dip and along strike, a prospect that Breakthrough is eager to explore.

Drilling Plans and Exploration Potential

Importantly, DMIRS has already granted environmental approval for reverse circulation (RC) drilling, allowing Breakthrough to commence drilling operations promptly after acquisition completion. The initial drilling program will focus on testing extensions of the high-grade gold mineralisation at the core of the Errolls Prospect, targeting multiple walk-up drill sites adjacent to historical intercepts.

Metallurgical testwork from previous drilling campaigns indicates exceptional gold recoveries of up to 98.4% using standard cyanide leaching, suggesting that any newly discovered gold mineralisation could be economically extracted with relative ease. This metallurgical advantage adds a compelling layer to the project's exploration upside.

Strategic Location and Geological Setting

The Errolls Gold Project lies within the Barrambie Greenstone Belt, a well-known geological setting for gold mineralisation. The project area includes both exploration license E57/996 and a mining lease application, covering high-grade gold targets hosted along a sheared granite–greenstone contact. The mineralisation is associated with massive quartz veins exposed at surface, some reaching widths of up to 8 metres and grades as high as 50 grams per tonne.

With historical mining and drilling limited to shallow depths, Breakthrough’s upcoming exploration program aims to unlock deeper extensions and expand the known mineralised zones, potentially adding significant value to the project.