Trigg Minerals (ASX:TMG) Acquires a globally significant high-grade, high-tonnage antimony project

30 September 2024

Price Sensitive Announcement $

Highlights:

• Trigg signs purchase agreement to acquire the 100% of the Achilles project which contains the globally significant high grade and high tonnage Wild Cattle Creek (WCC) Antimony Deposit.
• The WCC deposit is Australia highest grade JORC classified undeveloped Antimony deposit and ranks one of the highest-grade antimony deposits globally.
• Significant intersections recorded by historical owners of the project include (refer to table 2 for full results):
• 10.7m at 14.24% Sb
• 18.7m at 4.5% Sb from including 5.2m at 9.8% Sb
• 10.8m at 9.28% Sb
• 51.2m at 1.7% Sb including 5.5m at 4.8% Sb
• 22.5m at 3.9% Sb
• 12m at 4.3% Sb
• 10m at 5.1% Sb
• The WCC deposit is the second-largest antimony deposit in New South Wales, after Hillgrove, with
  a resource of 610 kt at 2.56% Sb, containing 15,600 tonnes of antimony. This estimate is based on
  a high cut-off grade of 1%, reported in accordance with JORC 2012 standards.
• Numerous ultra-high-grade intersections grading up to 14.45% Sb have been confirmed beyond the existing JORC resource indicating significant resource upgrades.
• The deposit is enriched from surface and open down plunge hosted by an 6km long largely untested structure.
• Historical metallurgy showed antimony recoveries of over 95% are achievable from the WCC deposit through a low-cost conventional milling and flotation technique.
• Trigg post completion will progress further exploration for resource expansion at the WCC deposit while simultaneously advancing it’s 100% owned Taylors Arm antimony project which contains Australia’s highest ever recorded antimony grade at 63% Sb.
• 100% non-cash transaction allows Trigg to preserve its healthy cash balance for value adding exploration.

Overview:

Trigg Minerals Limited has announce it has signed a binding purchase agreement with an unlisted public company, Anchor Resources Pty Ltd, to acquire the Achilles Antimony Project (Achilles) in northern New South Wales (Figure 1).

The Achilles Project hosts the globally significant high grade and high tonnage Wild Cattle Creek antimony deposit, with a JORC 2012-compliant Mineral Resource Estimate (MRE) of 610,000 tonnes at 2.56% Sb, containing 15,600 tonnes of antimony (Indicated and Inferred categories).

Wild Cattle Creek is the second largest antimony deposit in NSW. In addition to antimony, the deposit is enriched with tungsten and gold.

Discovered in the 1890s, the project has historically produced antimony ore during several periods of operation since then, with grades up to 46% Sb reported. Anchor Resources completed the most recent work on the project from 2005 to 2016 when it completed 23 drill holes, two resource estimation studies, orientation soil geochemistry, water and noise monitoring surveys, and sponsored university research into the genesis of the Wild Cattle Creek deposit.

Project Overview:

The Achilles exploration licence (EL 6388) is 40km west of Coffs Harbour, northeast New South Wales and ~11km north of Dorrigo. The Project contains the Wild Cattle Creek antimony deposit, Australia’s third-largest antimony deposit after Hillgrove[1] and Costerfield[2], with the potential for further expansion through ongoing exploration.

Geology:

The Wild Cattle Creek deposit is in the Coffs Harbour Block of the New England Orogen, within a Late Carboniferous turbidite sequence dominated by siltstone (the Brooklana Beds). These sediments have undergone multiple deformations, regional metamorphism (up to biotite grade), and granitoid
intrusions. The block is interpreted as an accretionary prism with subduction-related metamorphism dated at 318 ± 8 Ma. Mineralisation at Wild Cattle Creek is like the nearby Hillgrove antimony-gold deposit, located 80 km to the west-southwest and currently held by Larvotto Resources (ASX: LRV).

JORC 2012 Resource:

The Wild Cattle Creek antimony mineral resource estimate, prepared by SRK Consulting in September 2013 in accordance with 2012 JORC, was based on 130 surface drill holes totalling 10,710 metres. The deposit is exposed at the surface for over 300 metres and plunges approximately 25° westerly. It extends down plunge for over 350 metres, where mineralisation remains open to the west (Figure 2).

The Company plans to restate and update the Wild Cattle Creek resource by extending resource expansion efforts down-plunge and identify and test potential replicate shoots. These actions aim to significantly increase the overall scale of the Achilles project and expedite the exploration of high-priority regional targets.

Mineralisation:

The Wild Cattle Creek mineralisation is hosted in an east-west trending brittle-ductile fault within the Brooklana Beds. Stibnite mineralisation has been identified along a 6 km strike, with antimony production also recorded at Fletcher’s mine on the same structure. The primary antimony minerals are stibnite and minor berthierite, with accessory minerals like pyrite, arsenopyrite, wolframite, and cinnabar. High-grade antimony occurs in breccia cemented by silica and sulphides, with stibnite found in various forms, including fine disseminations throughout the cement and coarse-grained blades intergrown with vein quartz and stringer veins. The breccia is flanked by metasediments containing lower-grade stibnite and significant tungsten (wolframite and rare scheelite).

On the footwall and hanging wall, high-grade stibnite breccia is flanked by metasediments containing stringer vein (or stockwork) style mineralisation. This mineralisation contains lower-grade stibnite but significant tungsten in the form of wolframite and rare scheelite. Trigg will investigate the resource potential of the lower-grade selvage to the high-grade mineralisation before any future resource restatement.

Metallurgy:

Metallurgical test work in the 1990s showed that antimony recoveries of over 95% are achievable, with a 60-65% Sb concentrate produced through conventional milling and flotation. Modern processes can upgrade antimony sulphide concentrates to over 90% Sb, either as antimony trioxide or metal, with test work indicating a product of >95% Sb as antimony trioxide. Gold, silver, and tungsten are potential pay metals, while bismuth levels are expected to be low. Historical test work revealed native gold, silver, and other minerals in flotation concentrates.

Anchor has reviewed all historical test work and conducted its own tests on drill core from 2009-2010 programs. Trigg will evaluate recent advancements in metallurgical processes for antimony recovery from concentrates, including innovations such as molten salt electrolysis in antimony smelting.

Regional Potential:

The regional potential of the remaining exploration licence area has yet to be fully assessed. Given untested historical workings and prospects along a 6 km mineralised structure, there is promising
potential for additional antimony discoveries. In 2009, Anchor’s reconnaissance sampling identified
stibnite mineralisation at several locations along this structure, showing similarities to the Wild Cattle Creek deposit, including Jezebel and Fletcher’s Mine. Two exploration holes were drilled at the Jezebel antimony prospect, 400 metres east of Wild Cattle Creek, where a scout drillhole in the 1960s intersected 1.3m at 11.8% Sb (DDH36; Table 2). Whereas Fletcher’s mine lies west of Wild Cattle Creek.
Production from Fletcher’s mine was reportedly 1.5t of antimony in 1928

Other prospects include:

• Graham & Navins – historical Sb prospect, not yet visited
• WCC west – historical Sb prospect, not yet visited.
• Lone Pine – historical record of old tungsten workings, southeast of WCC

Deal Terms:

Under the terms of the agreement, Trigg Minerals Limited (TMG) will acquire 100% ownership of EL 6388 from Anchor Resources Pty Limited (ACN 122 751 419). The material terms of the acquisition are as follows:

Vendor: Anchor Resources Pty Limited
Asset: Exploration License EL 6388
Consideration:

• AU$250,000 worth of shares in Trigg Minerals (Tranche 1 TMG Shares), to be issued at a price
  based on the volume-weighted average price (VWAP) of Trigg’s shares over the 15 trading
  days prior to the completion date.
• An additional AU$200,000 worth of shares (Tranche 2 TMG Shares), to be issued upon
  achieving land access rights from the property owners where the tenement is located. The
  issue price will be based on the VWAP over the 15 trading days prior to meeting this milestone.
• A 1% net smelter return (NSR) royalty on all minerals extracted from the tenement area, as
  governed by a Royalty Deed to be entered into at completion

Escrow Terms
Both the Tranche 1 and Tranche 2 TMG Shares will be subject to a six-month voluntary escrow from their respective dates of issue, underscoring Trigg’s commitment to the long-term potential of this acquisition.

Conditions Precedent
The acquisition is subject to the satisfaction or waiver of certain conditions precedent, including:

• Shareholder Approval: Trigg Minerals’ shareholders must approve the transaction at a
  general meeting, including the issue of consideration shares to Anchor Resources, in
  accordance with ASX Listing Rules.
• Third-Party Approvals: All necessary regulatory consents and approvals must be obtained,
  including any required consent from the Minister responsible for the Mining Act.
• Deeds of Assignment: The parties will execute all required deeds of assignment and
  assumption related to existing third-party agreements tied to the tenement.

Company Notes:

Trigg Minerals Executive Chair Timothy Morrison said, “Acquiring the Achilles Project, including the Wild Cattle Creek antimony deposit, is a significant bolstering of our existing portfolio and provides Trigg Minerals with an advanced project with a JORC resource and plenty of exploration upside in and around the resource. Adding to our recent acquisitions of the Taylors Arms and Spartan antimony projects, we expect Achilles to be our flagship, given its advanced state”

Full ASX Announcement: https://announcements.asx.com.au/asxpdf/20240930/pdf/068h686ttc37gj.pdf