Mammoth Minerals has completed the sale of its Paterson Project, redirecting resources to accelerate drilling at its Excelsior Springs Gold-Silver Project in Nevada, with assay results expected soon.
- Divestment of 90% interest in Paterson Project to Cloudbreak Discovery PLC
- Receipt of milestone-based shares as part of the sale consideration
- Rapid progress in RC drilling at Excelsior Springs with over 3,350m completed
- Targeted drilling aims to extend high-grade gold-silver mineralisation zones
- Assay results from recent drilling expected within three weeks
Strategic Portfolio Streamlining
Mammoth Minerals Limited has taken a decisive step in refining its project portfolio by completing the divestment of its non-core Paterson Copper-Gold Project in Western Australia. The buyer, Cloudbreak Discovery PLC, will acquire a 90% interest, with Mammoth receiving a combination of immediate and milestone-based shares as consideration. This move underscores Mammoth’s commitment to concentrating on its higher-potential assets, particularly in the United States.
Accelerated Drilling at Excelsior Springs
With the Paterson Project divested, Mammoth is intensifying its exploration efforts at the Excelsior Springs Gold-Silver Project in Nevada. The company’s Reverse Circulation (RC) drilling program is progressing at an impressive pace, having completed over 3,350 metres of drilling across the Buster Trend to date. This is a significant increase compared to last year’s efforts, reflecting both operational efficiency and a sharpened focus on resource definition.
The drilling campaign aims to extend known zones of high-grade mineralisation, which previous diamond drilling had identified with promising intercepts, including intervals grading up to 19.10 grams per tonne of gold. These targeted extensional holes are designed to underpin an initial Mineral Resource estimate and clarify the scale of shallow mineralisation encountered so far.
Milestone-Linked Consideration and Future Prospects
The divestment deal includes a structured share payment plan contingent on Cloudbreak achieving specific exploration milestones by the end of 2029. These milestones range from heritage surveys and soil sampling to ground geophysics and drilling programs. This arrangement not only provides Mammoth with potential upside but also aligns incentives for Cloudbreak to advance the Paterson Project effectively.
Meanwhile, Mammoth anticipates assay results from the initial eleven RC drill holes within three weeks, which will be pivotal in guiding subsequent exploration phases and potentially enhancing the project’s valuation. The company’s Managing Director, Glenn Poole, highlighted the high productivity of the RC rig and the strategic importance of these results in shaping the project’s future.
Broader Exploration Ambitions
Beyond Nevada, Mammoth maintains a diverse portfolio including the Bella Gold Project in South Dakota and significant copper prospects in southern Peru. However, the current emphasis on the Excelsior Springs project signals a clear prioritisation of assets with near-term development potential and high-grade mineralisation, positioning Mammoth as a focused gold and silver explorer in the Americas.
Bottom Line?
Mammoth’s divestment and drilling acceleration mark a pivotal moment, with upcoming assay results set to define its next growth phase.
Questions in the middle?
- How will the upcoming assay results impact Mammoth’s resource estimates and market valuation?
- What are the prospects and timelines for Cloudbreak’s milestone achievements at Paterson?
- Could Mammoth’s focused strategy on Excelsior Springs accelerate a development decision?