Breakthrough Minerals Secures Errolls Gold Project and Raises A$1.2M for Drilling
Breakthrough Minerals has completed its acquisition of the high-grade Errolls Gold Project in Western Australia and raised A$1.2 million to fund an imminent drilling campaign targeting promising gold lodes.
- 100% ownership of Errolls Gold Project secured
- A$1.2 million placement completed to fund exploration
- Maiden reverse circulation drilling program approved for September quarter
- Metallurgical tests show high gold recovery rates
- Maggie Hays Hill Project returned to vendors, Llama Lithium Project under review
Transformational Acquisition Completed
Breakthrough Minerals Limited (ASX, BTM) marked a significant milestone in the June 2025 quarter by completing the acquisition of the Errolls Gold Project in Western Australia. This 100% ownership of a high-grade gold asset follows shareholder approval and regulatory confirmation that the key tenement will not be forfeited. The acquisition positions Breakthrough to transition from exploration planning to active drilling, a critical step in unlocking the project's value.
Capital Raising Fuels Exploration Ambitions
To support this aggressive exploration strategy, Breakthrough successfully raised approximately A$1.2 million through a placement to sophisticated investors and directors. The funds bolster the company's cash reserves to around A$2.09 million, providing a solid financial foundation to cover acquisition costs and underwrite an initial reverse circulation (RC) drilling campaign scheduled for early in the September quarter. This capital injection reflects investor confidence in the project's potential and Breakthrough’s focused approach.
Promising Exploration and Metallurgical Results
The maiden drilling program aims to extend known shallow, high-grade gold lodes, with historic intercepts including 22 meters at 7.46 grams per tonne from surface. Complementing these encouraging grades, metallurgical testwork announced earlier in April demonstrated rapid and high-yield gold recoveries of up to 98.4% within 24 hours, highlighting straightforward processing prospects and robust economics. Preparations such as soil sampling, heritage clearances, and drill-hole planning have advanced, setting the stage for drilling mobilization.
Portfolio Streamlining and Strategic Focus
In a strategic move to concentrate resources, Breakthrough returned its 80% interest in the Maggie Hays Hill Project to the vendors, securing a stamp duty refund exceeding A$100,000. Meanwhile, activities at the Llama Lithium Project in Quebec remain limited to desktop reviews as the company prioritizes capital deployment on Errolls. Breakthrough is also exploring potential partnerships to unlock value in its lithium assets, signaling a measured approach to diversification.
Looking Ahead
As Breakthrough transitions from acquisition to active exploration, the market will be watching closely for the first assay results from the Errolls drilling program expected in the September quarter. These results will be pivotal in validating the project's potential and guiding follow-up drilling plans. With a streamlined portfolio and a healthy cash position, Breakthrough is well-positioned to advance its flagship gold project and deliver value to shareholders.
Bottom Line?
Breakthrough Minerals is poised at a critical juncture as drilling results at Errolls will soon test the promise of its high-grade gold acquisition.
Questions in the middle?
- Will the maiden drilling at Errolls confirm the high-grade gold potential suggested by historic intercepts?
- How will Breakthrough balance exploration funding between Errolls and its lithium assets going forward?
- What are the specific performance milestones tied to the vendor’s performance rights, and how might they impact shareholder value?
