AustChina Raises $412K, Starts Fieldwork at Sulphide Creek, Secures Mersey Licence
AustChina Holdings has launched initial fieldwork at its Sulphide Creek Gold-Antimony Project and secured a key exploration licence for its Mersey Base Metals and Gold Project in Tasmania, signaling a strategic push in mineral exploration.
- First-phase fieldwork commenced at Sulphide Creek Project with promising drill targets
- Exploration licence granted for Mersey VMS Base Metals and Gold Project
- Blackall Coal Project exploration permit renewed for five years
- Placement raised $412,500 to fund ongoing exploration activities
- Historic data review revealed multiple gold intersections exceeding 1g/t Au
Sulphide Creek Project – A New Chapter in Queenstown Mining District
AustChina Holdings Limited has taken a decisive step forward in its Tasmanian exploration strategy by commencing first-phase fieldwork at the Sulphide Creek Gold-Antimony Project. Situated in the renowned Queenstown mining district, this project covers 224 square kilometres of largely accessible crown land, offering logistical advantages such as proximity to roads, power, and a skilled local workforce.
The initial field activities have been comprehensive, including structural mapping, stakeholder engagement, and a detailed review of historic drilling data. Notably, multiple gold intersections exceeding 1 gram per tonne were identified at the Coupon and Davies prospects, alongside surface sampling that has highlighted new drill targets. Processing of historic LIDAR data further confirmed the locations of previous workings, enhancing the geological understanding of the area.
Mersey Project – Licence Granted and Exploration Plans Unveiled
In parallel, AustChina secured the grant of Exploration Licence EL6/2021 for the Mersey Volcanogenic Massive Sulphide (VMS) Base Metals and Gold Project, located approximately 150 kilometres northeast of Sulphide Creek. This licence, valid until May 2030, unlocks access to a 203 square kilometre area within the prospective Mount Read Volcanics, a geological setting analogous to world-class VMS deposits like Hellyer and Rosebery.
The company has outlined an ambitious first phase of fieldwork, including geological mapping, soil and rock chip sampling, and a LIDAR survey to identify historic workings and structural features. A detailed airborne electro-magnetic survey is also planned to pinpoint massive sulphide targets, with drilling contingent on survey results. This methodical approach reflects a commitment to leveraging modern exploration techniques to unlock the project's potential.
Coal Assets and Corporate Developments
Beyond Tasmania, AustChina’s Blackall Coal Project in Queensland saw its exploration permit renewed for another five years, ensuring continuity in this segment of the company’s portfolio. While no fieldwork was conducted during the quarter, the renewal underscores a long-term commitment to coal exploration.
Financially, AustChina completed a placement raising $412,500 from a sophisticated investor, providing essential funding for its exploration programs and working capital. The placement was executed at a price representing a 50% premium to the recent volume-weighted average price, indicating investor confidence. Cash flow statements reveal ongoing expenditures aligned with exploration and corporate activities, balanced by this capital injection.
Outlook and Strategic Positioning
AustChina’s recent activities reflect a clear strategic focus on advancing its mineral exploration assets in Tasmania, leveraging both historical data and modern survey technologies. The identification of drill-ready targets at Sulphide Creek and the commencement of detailed surveys at Mersey position the company well for potential discoveries. However, the path to production remains contingent on forthcoming drilling results and permit approvals.
Meanwhile, the company maintains an equity stake in Revolver Resources, which is progressing copper exploration and mine development in Queensland, adding a complementary dimension to AustChina’s resource portfolio.
Bottom Line?
AustChina’s exploration momentum in Tasmania is building, but upcoming drilling results will be pivotal in defining its growth trajectory.
Questions in the middle?
- When will AustChina receive final approvals to commence drilling at Sulphide Creek?
- What are the initial assay results from surface sampling and historic drill hole reviews?
- How will AustChina balance its modest cash reserves with the capital-intensive nature of exploration?