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Breakaway Resources boosts coffers with sale of West Kambalda tenements

Breakaway Resources (ASX: BRW) will sell 10 of its West Kambalda tenements to Ramelius Resources (ASX: RMS) in exchange for A$0.3 million in cash and a royalty of 1.5% of the net smelter return on all minerals other than nickel.

Breakaway will retain all the nickel rights over the tenements under the Sale and Purchase Agreement.

The tenements are located immediately north of Ramelius’ Wattle Dam Gold Mine and comprise exploration, prospecting, and mining licences.

They exclude Breakaway's wholly owned Spargos Reward tenements which contain the historic Spargos Reward gold mine where around 126,000 tonnes at 8 grams per tonne (g/t) gold for 29,000 ounces was extracted via open pit and underground mining to 120 metres.

Queensland copper-gold focus

Breakaway is selling the West Kambalda tenements to focus its ongoing exploration activities on the highly prospective Eloise copper-gold exploration project in Queensland.

The 480 square kilometre project is located in the Cloncurry Mineral District which hosts in excess of 5 million tonnes of copper.

Breakaway has identified multiple targets within 20 kilometres of the operating Eloise Copper Mine, owned by the company’s second largest shareholder FMR Investments.

Importantly, the Eloise Exploration Project has had very little copper-gold focused exploration for the last 10 to 15 years.

Breakaway recently intersected mineralised zones in all three diamond drill holes at the company’s Sandy Creek prospect, which is part of the Eloise project and a rapidly emerging copper-gold discovery.

Results from the latest round of drilling reinforce the potential for extensions to the existing mineralisation. 

Previous reverse circulation drilling at Sandy Creek has identified continuous high grade copper-gold mineralisation, with drill intercepts up to 6.23% copper over 600 metres strike and 120 metres depth.

Earlier rock chip sampling at the Sandy prospect has indicated the potential for a 125 metre extension to the already defined 600 metre strike length of mineralisation.


Coffers

The $0.3 million and ongoing royalty will build on Breakaway’s cash reserves of $2.2 million at the end of the December quarter.

The company successfully completed a $1.1 million capital raising during the December quarter which is being used to continue ongoing exploration activities at Eloise.