Kali Metals has expanded its Marble Bar Gold Project by acquiring a strategic tenement adjacent to a significant gold-in-soil anomaly, increasing its project area to approximately 96 square kilometres. The acquisition enhances exploration continuity and efficiency amid rising gold prices.
- Acquisition of exploration licence E45/6389 expands Marble Bar Project to ~96 km²
- New tenement borders existing holdings on three sides, lying along a 9.5 km gold-in-soil anomaly
- Acquisition primarily via scrip with contingent shares tied to future gold resource discoveries
- Immediate exploration planned with heritage approvals in place
- 299 new rock chip samples collected, assay results pending
Strategic Expansion in the Pilbara
Kali Metals Limited (ASX: KM1) has taken a significant step forward in its gold exploration ambitions by acquiring exploration licence E45/6389, effectively expanding its Marble Bar Gold Project in Western Australia's Pilbara region. This acquisition adds 28.8 square kilometres to the project, bringing the total contiguous landholding to approximately 96 square kilometres. The new tenement strategically borders Kali's existing tenure on three sides, creating a more unified and accessible exploration area.
Building on a Promising Gold Anomaly
The newly acquired tenement lies immediately north and along strike of a previously identified 9.5-kilometre gold-in-soil anomaly, where rock chip samples have returned grades as high as 4.0 grams per tonne of gold. This proximity suggests that the mineralisation trend could extend into the new licence area, a prospect that Kali Metals is eager to explore. With heritage arrangements already secured, the company plans to commence exploration activities without delay.
A Deal Structured for Growth
The acquisition was executed primarily through scrip consideration, reflecting Kali's strategy to conserve cash while expanding its asset base. The deal includes a modest cash payment of $20,000 and an initial issuance of over 3.5 million ordinary shares. Additional shares are contingent on the discovery of significant gold resources, specifically, if Kali identifies a JORC-compliant resource exceeding 100,000 ounces or 250,000 ounces within four years, further share payments will be made. This structure aligns incentives and underscores the company's confidence in the exploration potential of the new tenement.
Momentum from Recent Sampling Campaign
Complementing the acquisition, Kali Metals has completed its most extensive rock chip sampling program to date at Marble Bar, collecting 299 samples across its existing tenements. The company anticipates releasing assay results in the coming weeks, which could provide further insights into the project's gold potential and inform upcoming exploration strategies.
Positioning Amid Rising Gold Prices
With gold prices reaching record highs recently, Kali Metals' expanded footprint in the Pilbara positions it well to capitalise on favourable market conditions. The Marble Bar Project's proximity to established operations like the Warrawoona and Klondyke Gold Projects adds strategic value, potentially facilitating future development and partnerships. Managing Director Paul Adams highlighted the benefits of a contiguous project area, noting improved exploration access and operational efficiency as key advantages.
Bottom Line?
Kali Metals’ expanded Marble Bar tenure and imminent assay results set the stage for a pivotal phase in its Pilbara gold exploration journey.
Questions in the middle?
- Will the upcoming rock chip assay results confirm extensions of the gold-in-soil anomaly into the new tenement?
- How soon might Kali Metals delineate a JORC-compliant gold resource within the newly acquired licence?
- What impact will the contingent share issuances have on Kali Metals’ capital structure and shareholder value?