In November 2020, the company began a soil sampling campaign to investigate the nickel-copper potential in two priority areas – the Lightning Gossan Prospect and Bullseye Anomaly.
Notably, the recent sale of the company’s Jumbuck Gold Project in South Australia will provide necessary funds to progress the company’s exploration strategy at the Dragon & Knight Nickel Project.
Tyranna’s exploration activities will include a step-out soil sampling program at the Bullseye Anomaly together with a mapping and rock chip sampling program across the Northern Dyke to investigate the extent of nickel-copper anomalism in the area.
Additionally, an infill soil sampling program at the Lightning Gossan Prospect together with geological and structural mapping will aid developing targets for future exploration drilling.
Assay results are expected shortly and the work will gather the necessary field data to aid in developing an inaugural drilling campaign slated for the first half of 2021.
Lightning Gossan potential
Lightning Gossan is interpreted to have similar mineralisation based on extensive historic surface sampling with assays up to 7,600 parts per million nickel, 5,700 ppm copper and 1,140 ppm zinc.
Notably, five shallow historic drill holes by CRA Exploration intersected the structure producing assayed intercepts up to 4 metres at 1,925 ppm nickel from 16 metres including 2 metres at 2,290 ppm nickel with the potential to hit high-grade sulphide mineralisation similar to that found at SGQ’s Mt Alexander project.
To date, geophysics interpretation confirms there is a standout anomaly, which aligns with the surface sampling and drilling assay results.
The Bullseye Anomaly
While historic efforts to locate gold mineralisation at the Bullseye Anomaly were unsuccessful, assayed soil samples returned up to 1,330 parts per billion nickel and 1,440 ppb copper and results from a 2006 reverse circulation drilling campaign were up to 210 ppm nickel and 750 ppm copper.
The company has interpreted the underlying geology to be similar to the Lightning Gossan and Fish Hook prospects.
Lightning Gossan Project and bullseye anomaly within the Knight Project.
Jumbuck Project sale
Late last year the company announced the execution of a share and asset sale agreement (SASA) with Marmota Ltd (ASX:MEU) (FRA:43M) for the proposed sale of Tyranna’s right, title and interest in Half Moon Pty Ltd (HMP).
HMP is the owner of the majority and controlling joint venture interest in the Western Gawler Craton Joint Venture (WGCJV) and all tenements located around the WGCJV owned 100% by HMP and Trafford Resources Pty Ltd (wholly-owned subsidiaries of the company) which are collectively referred to as the Jumbuck Gold Project.
Marmota will pay Tyranna $3 million for the project, comprised of:
- $100,000 in cash within two business days of the parties entering into the SASA;
- $2,400,000 in cash payable on completion of the sale and purchase of the Jumbuck Gold Project (Completion); and
- $500,000 worth of new fully paid ordinary shares in Marmota, calculated at the volume-weighted average price of Marmota's shares over the six months prior to the announcement of the transaction, to be issued to Tyranna at completion.
The parties have agreed that the conditions precedent for the sale must by satisfied by May 31, 2021, or such other date as agreed by the parties and during the period to completion, Tyranna will maintain the Jumbuck Gold Project.
Eureka Project sold
On August 17, 2020, the company announced that it had granted Warriedar Mining Pty Ltd an option to acquire tenements owned 100% by Tyranna and its wholly-owned subsidiary Coastal Shipping Logistics Pty Ltd - collectively referred to as the Eureka Gold Project - for the payment of up to $1.5 million.
Later that month Warriedar Mining exercised its option and Tyranna had received the non-refundable deposit of $100,000 plus the exercised option amount of $900,000 for the project north of Kalgoorlie.
The remaining condition was the obtaining of ministerial approval which was obtained and advised to the market on October 1, 2020.
Looking forwards, the company can receive a further payment of $500,000 cash if, on or before the fifth anniversary of the completion date, Warriedar produces from within the Eureka Project tenements recovered.