Metal Hawk has signed a binding agreement with IGO to acquire the latter’s 51% joint venture interest in the Kanowna East, Emu Lake and Fraser South projects in Western Australia.
Through the proposed transaction, IGO will increase its shareholding in Metal Hawk from 5.4% to 8.2%.
Metal Hawk intends to carry out an extensive drilling programme at Fraser South, targeting Ni-Cu mineralisation within zones of potential mafic and ultramafic stratigraphy.
The drilling also targets the western margin of the interpreted structural extension of the Albany Fraser metamorphic belt which hosts the Nova-Bollinger nickel mine.
In addition, it will test for clay-hosted REE mineralisation within the weathered zone above the regionally extensive REE-enriched Booanya Granite.
IGO’s exploration team originally designed the work program at Fraser South, with heritage and vegetation surveys, extensive airborne geophysical surveys, and some earthworks completed.
The initial drilling will focus on the two southern granted tenements E63/3809 and E36/1936 located immediately north and along strike from OD6 Metals’s Splinter Rock Project.
Metal Hawk managing director Will Belbin said: “As we take on 100% ownership of these projects, we are pleased to see IGO increase its shareholding in Metal Hawk.
“Since the MHK-IGO earn-in and joint venture agreement commenced in September 2020 there has been a significant amount of quality work carried out by the IGO team.
“We will be kicking off exploration activities at Fraser South shortly, where planning is nearing completion for a maiden drill program targeting early-stage indicators of nickel-copper sulphides and rare-earth elements (REE).”
The Kanowna East Project tenement has recently been extended by 47km² to more than 103km² after Metal Hawk applied for southern tenements E27/700, E27/704 and E25/614.
Based on its close proximity to Kalgoorlie and significant gold and nickel sulphide deposits, the Kanowna East tenement package is said to be relatively underexplored.
Before Metal Hawk discovered nickel sulphide at the Berehaven Project in September 2021, it had drilled outstanding gold intercepts at Kanowna East.
The Emu Lake Project is located 75km from Kalgoorlie, along the Gindalbie greenstone belt.
After reviewing the geological information from IGO, Metal Hawk will choose either to continue exploration, divest or joint venture its interest in the Kanowna East and Emu Lake projects.
Belbin added: “The Fraser South project covers over 40km of strike along the interpreted structural extension of the western margin of the Albany Fraser belt.
“The project is positioned within a rapidly emerging REE region highlighted by a number of exciting new clay-hosted discoveries along strike and immediately south of Metal Hawk’s 987km² tenement area.
“The Kanowna East and Emu Lake projects present as outstanding greenfields gold and nickel opportunities close to Kalgoorlie, and the Company is planning its next steps towards continued exploration on these projects.”
