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Meteoric Resources to acquire high-grade gold projects in Brazil

The Alta Floresta Belt is one of the most prospective gold exploration destinations in Brazil.
Drilling at the Juruena Project
Tenement holders within the Alta Floresta Belt highlighting the major players in the area

Meteoric Resources NL (ASX:MEI) has entered into a binding terms sheet with Crusader Resources (ASX:CAS) to acquire the Juruena and Novo Astro gold projects in the state of Mato Grosso in Brazil.

Juruena hosts a JORC compliant resource of 1.3 million tonnes for 261,000 ounces of gold at 6.3 g/t and has had more than $25 million of expenditure including over 50,000 metres of drilling.

The Novo Astro Project is located 25 kilometres to the southeast of Juruena and contains a massive soil anomaly (+15 square kilometres) with multiple rock chip samples grading >10 g/t gold.

The Juruena and Novo Astro projects cover an area of about 770 square kilometres, comprising 24 contiguous tenements on the western end of the highly prospective Alta Floresta Belt, which is host to major miners including Anglo American (LON:AAL) and Vale (NYSE:VALE).

Geologically, the Alta Floresta belt is a Paleoproterozoic, east-west trending, continental magmatic-arc, estimated to have produced over 7 million ounces of gold to date.

It is arguably the most desirable gold exploration destination in Brazil.

Outstanding high-grade drill intercepts

The total cost of the acquisition is $1 million in cash upon acquisition completion and $2 million in shares issued across three stages.

Meteoric Resources managing director Dr Andrew Tunks said: “The acquisition of the Juruena and Novo Astra Projects is a wonderful opportunity for the company. It’s a pivotal point in developing our work/mission/identity, from explorer to miner.

“The truism “Grade is King” is often thrown around and Juruena is a prime example.

“We’ve seen outstanding high-grade drill intercepts within a large mineralised system, which remains largely open with areas untested. I am confident there will be exciting exploration results from Juruena once we mobilise to site.”

Significant untapped potential

“Concerning Novo Astra, we can see a massive gold anomaly, identified through extensive artisanal mining extending over 15 square kilometres.

“We have multiple high-grade rock chip results above 10 g/t gold with the highest in excess of 250 g/t, which constitutes a large, high-grade opportunity of enormous untapped potential.

“Across Juruena and Novo Astra we are presented with a fascinating array of first-class targets which have been pinpointed by in excess of US$25 million in exploration expenditure to date including over 50,000 metres of drilling.

Drilling planned at two advanced targets

Tunks added: “As part of the acquisition process, we are committed to retaining the existing technical staff working on the project in order to hit the ground running.

“Further, we have formed a partnership with an experienced Brazilian exploration management group, Target Latin America, who have a strong track record in successful exploration throughout Brazil.

“Initially our work with them will be further exploration at the two most advanced targets - Querosene and Donna Maria.

“This initial work program will include resource definition and resource extension drilling.

“At Novo Astra, we will commence a program of ground-based geophysics over the enormous geochemical anomaly involving magnetics and an induced polarisation survey (IP).”

Diversification of commodity risk

“This acquisition culminates an extensive worldwide review of potential gold assets.

“It will add immediate value for our shareholders and expose them to the vast upside potential of the projects.

“It will also serve to diversify our commodity risk, by adding a high-grade gold resource to the company’s portfolio.”

Capital raising and share purchase plan

Meteoric is raising of up to $2.64 million via an underwritten issue of shares at 1 cent each to sophisticated and professional investors.

In conjunction with the placement, Meteoric will offer eligible shareholders the opportunity to participate in a share purchase plan (SPP) to raise up to $750,000 via the issue of shares at the same price.

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