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15 June 2020
PROPOSED ACQUISITION OF HIGH‐GRADE
WESTERN AUSTRALIAN GOLD PROJECT
Meteoric has entered into a conditional agreement to acquire the Palm Springs Gold Project, an
advanced exploration play with past production, spectacular drill intercepts and historic resources
located within the Halls Creek Orogen of Western Australia
Production on the Project in the late 1990s came from the Butchers Creek Open Pit gold mine –
52,000oz @ 2.1 g/t Au, until mining was stopped by the historically low gold price1
Historic drilling beneath the shallow Butchers Creek Open Pit indicates substantial ore zones beneath
the pit floor including both thick mineralised envelopes and narrower, very high‐grade zones: Significant
intercepts within unmined zones below the base of the open pit include:
o BCP036 – 68m @ 2.5g/t Au from 44m
o BCR250 – 19m @ 8.8 g/t Au from 56m
o BCRC180 – 14m @ 7.5 g/t Au from 82m
o BCP017 – 50m @ 3.31 g/t Au from 50m
o BCD230 – 7m @ 4.2 g/t Au & 8m @ 17.4 g/t Au from 49m
o BCD232 – 6m @ 21.2 g/t Au from 60m
o BCD336 – 38m @ 2.4 g/t Au from 170m
o BCRC318 – 29m @ 3.9 g/t Au from 113m
Mineralisation is open at depth and down plunge to the south with structural repetitions of the host
unit across the project vastly increasing the potential strike length
Northern Star Resources Ltd completed drilling and a Mineral Resource on the Project at the Golden
Crown and Faugh‐a‐Ballagh Prospects and best results include
o GCP017 – 2m @ 174.7 g/t Au from 12m
o GCD011 –5m @ 4.9 g/t Au including 0.4m @ 47.2 g/t Au from 126.6m
o GCP012 – 2m @ 11.4 g/t Au from 97m
o GCD010 –0.8m @ 501.1 g/t Au from 23m
The acquisition includes 3 MLs (95% interest in 2 of these MLs), 4 ELs and 7 PLs including 20km of
prospective strike and covering more than 12,500 ha with over 60 known gold occurrences outside the
Butchers Creek Mine
The Project presents immediate drilling targets beneath a previously producing mine as well as
encompassing substantial Brown Fields exploration targets along 20km of prospective strike
MEI geologists will be on the ground within the next week collecting data and engaging with local groups
in preparation for a drill program that will commence at Butchers Creek as soon as practicable
1 Annual Report to the DMIRS GML 80/197 (May 1998)
Meteoric Resources NL (ASX: MEI) (“Meteoric” or “the Company”) is pleased to advise that it has signed a
conditional legally binding Term Sheet to acquire the Palm Springs Gold Project (“the Project”) located 30km
SE of Halls Creek in the Kimberley of Western Australia (“Acquisition”).
Managing Director Dr Andrew Tunks said,
“We have been looking for an Australian Gold Project since early in 2020 to complement our exciting Brazilian
assets and take further advantage of historically high gold prices. The Palm Springs Gold Project is an advanced
exploration opportunity based around an historic open pit mine that shut down at a time of exceptionally low
gold prices.
“The Butchers Creek Open Pit was mined by Precious Metals Australia between 1995 and 1997 and produced
over 50,000 ounces of gold at a recovered grade of 2g/t2
. The Butchers Creek pit is quite shallow (25m in the
south to 70m in the north) and there is substantial drilling beneath the pit that indicates the orebody is open at
depth and down plunge to the south.
“During our due diligence process, it became obvious that the Butchers Creek area has had no modern
exploration since the mine closed in 1997. Since that time, all the historic digital data has been lost and as such,
the geological evaluation had to be carried out via “the old school” method of manually working through 65
paper drill cross‐sections, a slow and painstaking process of reading the section drilling data off metre by metre
to compile the significant intercepts. As we worked through the sections in detail, it highlighted to me the
incredibly significant opportunity that Palm Springs offers Meteoric.
“The image to the right is a screenshot of one of those sections,
10,100mN at Butchers Creek. The pencil colouring and handwritten
notes are from the working geologists in 1997 when the section was
printed. The top of the image is approximately only 10m below the
current pit floor within a planned pit extension that was never
completed (refer Figure 3). As a gold explorer I am greatly excited by
the continuity of the grades and the thick robust nature of the
mineralised zones. Geological reports from this time indicated that the
mineralisation is associated with strong potassium and pyritic
alteration, yet no geophysical surveys have been used for exploration.
As such our initial drilling programs will look to target this and other
similar zones below and to the south of the open pit, providing us a
fantastic place to commence our exploration.
“Across the Project there are another 60 known gold occurrences that
have seen some exploration and historical production, yet many of
them remain undrilled. At Golden Crown and Faugh‐A‐Ballagh
Prospects, (approx. 4km northeast of Butchers Creek) Northern Star
Resources outlined a small resource that remains open at depth and
along strike. Interestingly this was Northern Star’s maiden resource
and a springboard to bigger things.
“The Palm Springs Project is a fantastic addition to MEI’s gold portfolio.
It representsimmediate drilling targets beneath a previously producing
gold mine whilst also encompassing substantial Brown Fields
exploration targets along 20km of prospective strike. Importantly, the
Project is ideally situated, only 30km south east of Halls Creek with
excellent road access, has known metallurgical recoveries over 90%
from a standard CIL circuit and granted Mining Leases covering the
main zones of mineralisation at Butchers Creek. This acquisition is a
great result for Meteoric and I look forward to progressing our 2020
exploration programs concurrently at both our Australian and Brazilian
assets.”
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