Eastern Resources Eyes 80% Stake in Marengo Gold with Historic High-Grade Hits
Eastern Resources has secured a farm-in agreement to earn up to 80% interest in Queensland’s Marengo Gold Project, boasting impressive historic gold and copper grades. Meanwhile, lithium anomalies at its Trigg Hill project hint at further exploration potential.
- Farm-in agreement to earn up to 80% interest in Marengo Gold Project
- Historic rock samples show gold grades up to 149.8 g/t Au
- Trigg Hill Lithium Project reveals strong lithium soil anomalies
- No upfront cash payment required; staged exploration expenditure commitments
- Nowa Nowa Iron Project advances environmental approval process
Eastern Resources Advances Marengo Gold Ambitions
Eastern Resources Limited (ASX – EFE) has taken a significant step in expanding its precious metals portfolio by entering a farm-in agreement to earn up to an 80% interest in the Marengo Gold Project in Queensland. This project, situated within a prolific mineral belt near Bowen and close to established mining infrastructure, offers a compelling opportunity to tap into high-grade gold and copper mineralisation.
The Marengo Goldfield has a rich history dating back to the 1870s, with historical workings reporting exceptional gold grades. Notably, rock samples from previous exploration have yielded grades as high as 149.8 grams per tonne (g/t) gold and significant silver and copper values, underscoring the project's potential. Eastern Resources plans to build on this legacy through a staged exploration program, with no upfront cash consideration but committed expenditure milestones over three years to progressively increase its stake.
Lithium Prospects at Trigg Hill
Alongside its gold ambitions, Eastern Resources is advancing its lithium exploration at the Trigg Hill project in Western Australia. Recent soil sampling has identified strong lithium anomalies, particularly in the northwest Curlew area, with associated tantalum and cesium signatures that suggest proximity to fractionated pegmatites, prime targets for lithium mineralisation. While further exploration is planned, the company is aligning its activities with favourable lithium market conditions, reflecting a cautious but optimistic approach.
Ongoing Developments and Financial Position
Eastern Resources is also progressing environmental approvals for its Nowa Nowa Iron Project in Victoria, a high-grade magnetite deposit. No exploration was conducted this quarter at the Nowa Nowa Copper or Lepidolite Hill Lithium projects, but the company remains active in reviewing new opportunities and potential acquisitions.
Financially, Eastern Resources reported approximately AUD 3.44 million in cash reserves at quarter-end, providing a solid foundation to fund its exploration commitments. Related party payments were disclosed at normal commercial rates, reflecting standard corporate governance practices.
The farm-in agreement’s structure, which includes staged expenditure and a potential AUD 1 million payment upon achieving a significant mineral resource estimate, aligns incentives for Eastern Resources to aggressively explore and develop the Marengo Project. The proximity to existing processing infrastructure could also accelerate any future development timeline.
Bottom Line?
Eastern Resources’ strategic farm-in and exploration advances position it well for growth, but upcoming assay results and resource milestones will be critical to watch.
Questions in the middle?
- Will Eastern Resources meet the exploration expenditure milestones to secure full 80% ownership of Marengo?
- How will lithium market conditions influence the timing and scale of further exploration at Trigg Hill?
- What are the prospects and timelines for environmental approvals at the Nowa Nowa Iron Project?
