Sunset Well Acquisition Poses Exploration Risks Despite 94,500 Oz Gold Resource

Strategic Acquisition in a Proven Gold District

Recharge Metals Limited (ASX: REC) has taken a significant step forward by entering into a binding agreement to acquire 100% ownership of the Sunset Well Gold Project, situated in the prolific Leonora gold district of Western Australia. This acquisition brings immediate exposure to a near-surface inferred mineral resource of 2.87 million tonnes at 1.0 grams per tonne gold, amounting to approximately 94,500 ounces.

The project is anchored by the Prospero Deposit, a largely underexplored asset that has not seen drilling since the 1990s. With only three drill holes extending below 100 metres vertical depth, the deposit remains open both along strike and at depth, presenting substantial exploration upside.

Exploration Upside Across Multiple Targets

Beyond the Prospero Deposit, the Sunset Well Project encompasses two major structural corridors: the 10-kilometre Prospero Shear Zone and the 8-kilometre Flanders Shear Zone. Both zones have historical drill intercepts indicating high-grade gold mineralisation but remain materially underexplored. Recharge Metals plans to systematically follow up on these brownfields targets and explore greenfields opportunities within the extensive tenement package covering 181 square kilometres.

Noteworthy historical intercepts include high-grade near-surface gold such as 36 metres at 2.73 g/t gold from 32 metres depth, including 16 metres at 5.39 g/t, and deeper intercepts like 2.9 metres at 6.35 g/t from 101.9 metres. These results underscore the potential scale and continuity of mineralisation.

Capital Raising to Accelerate Drilling

To fund the acquisition and exploration program, Recharge Metals has secured firm commitments for a $3.75 million placement at $0.01 per share, representing a 54.5% discount to the last closing price. Additionally, a $2 million non-renounceable rights issue is being offered to existing shareholders, allowing them to participate on the same terms. The combined $5.75 million capital raise will primarily support drilling activities at Sunset Well and provide working capital.

Strengthened Leadership to Drive Growth

The company has bolstered its board and technical team with the appointments of Executive Technical Director Samuel Ekins, Non-Executive Director Ben Jones, and Strategic Technical Advisor Brett Keillor. These additions bring decades of experience in mineral exploration and project development, including successful track records in advancing significant Australian mining projects.

Managing Director Felicity Repacholi highlighted the strategic value of the acquisition, noting the project's proximity to existing gold processing infrastructure and the clear pathway to commence drilling promptly following transaction completion and regulatory approvals.

Looking Ahead

Recharge Metals is poised to initiate a comprehensive exploration campaign, including modern reverse circulation and aircore drilling, geochemical and geophysical targeting, and ongoing regional assessment. The company aims to expand the resource base and unlock the full potential of the Sunset Well Project within one of Western Australia's most productive gold regions.