Well-studied Thaduna-Green Dragon deposits find a new owner

By Haydn Black

Byrah workings near Thaduna | Credits: BOA

BOA Resources has doubled down on its Western Australian copper pursuit with a deal to acquire the well-studied Thaduna-Green Dragon deposits in the Bryah Basin in an all-scrip deal valued at A$7 million.

Mining News.net reports, the microcap entered the Murchison last year with a deal to amass a 1380sq.km tenement package at Neds Creek for around $600,000 in shares issued to Core Value Australia and a promise to spend $500,000 on exploration.

Core’s leadership team includes junior exploration executive Barry Woodhouse and geologist Adrian Griffin.

The initial deal delivered a 49% interest over ground to the north of Sandfire Resources’ former Degrussa and Monty copper-gold mines but excluded excised mining leases across the Thaduna-Green Dragon deposits, where there are resources of 5.3Mt at 2.3% copper for 121,000t contained metal.

BOA has now struck an additional deal with CVA that will see it move from 49% to 100% across the Neds Creek area and complete the jigsaw by nabbing the excised deposits.

Consideration is the issue of 128 million shares and a $100,000 loan to CVA, and the issue of an initial 28 million shares to secure Sandfire’s remaining rights over the licences.

Subject to completion, CVA will emerge with 28.6% of BOA, with Griffin to join the board. Sandfire will own in 6.2% in the explorer, while existing BOA shareholders will be diluted to a total 65% ownership.

Sandfire will be owed $2 million cash or shares on any decision to mine.

BOA executive chair Cath Norman said acquiring the mining leases was an important step as the company prepared to start maiden drilling across the Bryah Basin prospects it has worked up.

“Ricci Lee remains our first priority for resource definition drilling. It is located close to Thaduna, sits in the same geological setting and has already returned multiple ore-grade copper intercepts from historical drilling,” she said.

Heritage surveys have commenced across six priority prospects: Ricci Lee, Rooneys, Blockley, Mueller, Ward, and Limestone Bore.

Ricci Lee is defined by 1960s-era workings. The area was last drilled by Sipa Resources a decade ago and has known mineralisation in the Thaduna Formation. Mapping suggests it could be of a similar size to the 103,000t Thaduna deposit.

The company has nominated the Rooneys workings, west of Green Dragon, as its second priority.

Limited RAB and RC drilling returned 14m at 3.87% copper and 7m at 3.99%.

Blockley (previously NE Green Dragon) and Ward (East Green Dragon) are potential extensions to the 18,000t Green Dragon deposit. Mueller is 2km from Thaduna, while Limestone Bore is identified from a 5m deep RAB hole drilled in 2006.

BOA aims to fund the drilling with its $3.2 million in cash.

Shares in BOA fell 10% to 5.1c in afternoon trade, valuing the company at $16 million.

The junior has traded between 1.8c and 6.7c over the past year.