WCE west coast silver limited

Ann: Notification regarding unquoted securities - ERW, page-6

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    Early Discovery and Initial Exploration (1987–1997)Discovery: High-grade silver was discovered in 1987 by AGIP during nickel-copper exploration in the Archean Pilbara Craton, along the Munni Munni Fault, a major north-south structure. The deposit is hosted in a quartz-carbonate chalcedonic silica breccia with hydrothermal characteristics, adjacent to the ultramafic Judy Reef and a granitoid body.

    Exploration by East Coast Minerals and Legend Mining: From 1994, East Coast Minerals NL and Legend Mining NL conducted exploration, revealing a small but exceptionally rich silver deposit. Mineralization occurs in pods within a shear structure linked to the Munni Munni Fault, with native silver and minor silver sulfides (e.g., acanthite) in coarse-grained calcite veins.Geological Context: The deposit is structurally controlled, forming a southerly plunging shoot along the eastern boundary of the Munni Munni Fault. It includes primary minerals like argentopentlandite and supergene minerals like marcasite and goethite, with silver occurring as fine disseminations, needles, veins, and nuggets up to 100 kg.

    Mining Operations (1998–2000)Production: Underground mining by East Coast Minerals and Legend Mining occurred from 1998 to 2000, producing 1.17–1.2 million ounces of silver from 16,000–16,830 tonnes of ore at an average head grade of 2,194–2,195 g/t Ag (70–77 oz/t), making it Australia’s highest-grade silver mine at the time.Notable Finds: The operation yielded exceptional native silver, including the “Karratha Queen” (145 kg, ~3,520 ounces), displayed at The Perth Mint, and other masses up to 100 kg.Cessation: Mining ceased abruptly in 2000 due to a combination of depressed silver prices (~US$5/oz) and a fallout between joint venture partners, leaving significant untapped resources.

    Post-Mining and Asset Changes (2001–2017)Asset Sale: In 2001, East Coast Minerals and its former JV partner sold the Elizabeth Hill plant, equipment, and tailings (Sub-Lease Assets) to a third party, later acquired by Artemis Resources.Limited Exploration: Sporadic exploration occurred, but no significant work was undertaken due to low silver prices. A 2011 scoping study at A$50/oz silver was not pursued as prices retreated.Exploration Pause: By 2017, Karratha Metals Group, the then-owner, put exploration on hold, focusing on other prospects like nickel and base metals in the Munni Munni Complex.

    Acquisition by Alien Metals (2019–2021)Acquisition: In December 2019, Alien Metals Ltd (AIM:UFO) entered a conditional agreement to acquire 100% of the Elizabeth Hill Silver Project from Karratha Metals Group, finalized in 2020 after shareholder approval. The project included the mining lease and surrounding Munni Munni North exploration tenements.

    1999 JORC Resource: A historical JORC-compliant resource from 1999 estimated 4.05 million ounces of silver at 2,700 g/t (indicated and inferred, 200 g/t cut-off), though high-grade variability and the “nugget effect” prevented a measured classification.Tailings Project: In 2021, Alien Metals signed a 60-day exclusivity agreement with Wombat Resources to assess ~16,000 tonnes of historic tailings, with sampling yielding up to 1,270 g/t Ag (average 472 g/t). Metallurgical tests showed 91.9–95.2% silver recovery, indicating potential for near-term cash flow.

    Mine Reopening: In 2021, Alien began reopening the underground mine, dormant for over 20 years, by purchasing headframes and equipment. The original miner was engaged to assist, and an on-site camp was established to support exploration. The goal was to map and sample the orebody, update the resource, and test extensions, including a polymetallic halo (Cu, Ni, PGEs).

    Joint Venture with Errawarra Resources (2025)Acquisition by Errawarra: In March 2025, Errawarra Resources Ltd (ASX:ERW) acquired a 70% interest in the Elizabeth Hill Silver Project, surrounding tenements (180 km²), and 70% of silver rights in the Pinderi Hills Project, with Alien Metals retaining 30%. Errawarra raised A$3 million to fund exploration, planning to rename itself West Coast Silver Limited (proposed ASX:WCE).

    Recent Exploration: In May 2025, Errawarra reported high-grade surface sampling results using portable XRF, with silver grades up to 920 g/t ~150–300m north and south of the historic mine, along the Munni Munni Fault. These results confirmed extensions of the mineralized system and identified new targets in iron-rich, gossanous material.

    Further exploration, including trenching and drilling, is planned.Geological Potential: The project’s setting along the Munni Munni Fault and ultramafic complex suggests potential for additional silver pods and polymetallic deposits (Ni, Cu, PGEs). Six lodes are recognized within the historic mine envelope, and anomalous silver extends over a 2-km strike.

    Current Status and Outlook Ownership and Operations: Errawarra (70%) and Alien Metals (30%) are advancing exploration, with drilling planned for mid-2025 to test extensions and new targets. The project’s high grades, low historical processing tonnage, and simple gravity separation methods suggest potential for cost-effective operations.

    Infrastructure: The project benefits from proximity to Karratha, grid power, groundwater, and access to the Great Northern Highway and Port Hedland for exports. A nearby processing option at Radio Hill could reduce costs.
 
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