Strickland Metals To Acquire Multi-Million Ounce Gold Project In Serbia

Strickland Metals Ltd (ASX: STK) is acquiring the large-scale Rogozna Gold Project in Serbia, located in the globally significant Tethyan Metallogenic Belt.

The project contains a resource of 5.44 million ounces of gold equivalent (AuEq) (2.96Moz gold, 214kt copper and 364kt zinc).

Importantly, the exploration targets at Rogozna offer substantial resource growth, with significant intersections outside of the current resources.

These include drill results such as 352 metres at 2.1g/t AuEq from 240 metres, peaking at 97.7 metres at 5.1g/t AuEq from 321 metres.

New Managing Director

On completion of the acquisition, Strickland will appoint Paul L’Herpiniere, former Manager of Exploration at Fortescue, as Managing Director.

Andrew Bray will retire as Chief Executive Officer but will remain a consultant.

The acquisition is being conducted primarily via the issue of escrowed Strickland scrip, with the consideration representing ~19.4% of the post-transaction capital structure.

Potential for more copper-gold

Bray said: “In our view, the project has the potential to grow into one of the largest undeveloped gold deposits globally (with significant copper and zinc), making it precisely the type of asset that will attract very compelling valuations as the project advances.”

He added that the incredible upside that Rogozna offers (from an already impressive base) is something that is quite rare in this industry.

In particular, the potential for significant copper-gold porphyry mineralisation outside of the main prospect areas could be a bonus as exploration programs unfold.

Drilling planned

On completion of the acquisition, Strickland plans to undertake comprehensive exploration programs across each of the four defined deposits/prospects.

At least three diamond rigs will be drilling at the primary targets at Shanac, Medenovac, Gradina and Copper Canyon.

Initial exploration programs spanning the next 12 – 18 months are targeting a minimum of 60,000 metres of diamond drilling.

Complements Yandal Gold Project

The acquisition complements Strickland’s Yandal Gold Project, at which drilling has just restarted.

Strickland remains well-funded to advance exploration at both Yandal and Rogozna Projects, with cash and shares of ~A$54 million as on 31 December 2023.

 

 

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