Beasley Creek Project, Pilbara, Western Australia

GSWA mapping showing location of ELA 47/3490 at Beasley Creek, the Hardey Formation, mapped location of Hardey Conglomerate and position of historical workings
Figure 1: GSWA mapping showing location of ELA 47/3490 at Beasley Creek, the Hardey Formation, mapped location of Hardey Conglomerate and position of historical workings
  • 80% interest in exploration licence application at Beasley Creek, 52km northwest of Paraburdoo, West Pilbara region
  • 16km strike of prospective Hardey Formation, including 2km strike of GSWA mapped Hardey Conglomerate
  • Historical surficial gold workings (including large tailings pond) coincident with mapped conglomerate horizon
  • Orientation site visit confirms Hardey Formation with conglomerate boulders observed in spoil heaps from old workings and in surface lag
  • Acquisition continues strategy to build a stable of quality early-stage West Australian projects offering accelerated value appreciation

Castle Minerals has secured the right to acquire an 80% interest in an exploration licence at Beasley Creek in the West Pilbara region of Western Australia that encompasses 16km strike of Hardey Formation stratigraphy including at least 2km strike of its prospective basal conglomerate horizon with very encouraging, coincident historical surficial gold workings and recent detector diggings.

The Hardey Conglomerate unit, as mapped by the Geological Survey of Western Australia (GSWA), is described as a ‘clast supported polymictic, pebble to boulder conglomerate with the clasts derived from the underlying greenstone succession’.

This description is consistent with field observations by Castle geologists who have completed an orientation appraisal of the area during which boulders of Hardey Conglomerate were observed on spoil dumps.

“We are extremely pleased to have acquired in a very competitive environment another high-quality project where the presence of Hardey Formation over 16km strike with at least 2km strike of GSWA mapped Hardey conglomerate, coincident historical gold workings and conglomerate boulders in spoil heaps confirm its excellent prospectivity for Witswatersrand-style conglomerate hosted gold,” said Castle Managing Director, Stephen Stone. “Hot on the heels of the recent Coolyia Creek Project purchase, this acquisition continues Castle’s strategy to refocus on acquiring a stable of quality, earlystage West Australian projects offering accelerated value appreciation, with other deals also under consideration.”

The Vendor of the 25 block, 79km² licence application (ELA 47/3490) is Rosane Pty Ltd, an entity associated with prospector, Bob Creasy.

The licence area lies on the northern flanks of, and unconformably above, older Archean quartzites and schists belonging to the regionally prominent Rocklea Dome. It has previously been explored for a range of commodities including gold, copper, diamonds, iron ore and gemstones.

Castle is presently compiling and reviewing historical reports and data and collating other available datasets prior to planning a first-pass field evaluation programme. This will comprise detailed mapping to confirm in-situ and define the Hardey Conglomerate horizon, to determine if there are unexposed east-west extensions to what was mapped by the GSWA and to map other key stratigraphic units in the area; rock-chip, lag, soil and stream sediment sampling and metal detecting.

Transaction

The consideration payable to the Vendor for an 80% interest in ELA 47/3940, with the Vendor’s 20% interest free carried to a decision to mine, comprises an Initial Consideration of a non-refundable cash consideration of $80,000 and 2.0M new ordinary Castle shares. Upon Settlement of the transaction, including the grant of and subsequent registration of Castle’s interest in the licence, the Vendor will receive a Deferred Consideration in two parts; a First Milestone of $50,000 cash and 2.0M Castle shares and a Second Milestone Payment comprising 2.0M Castle Performance Rights that will vest as and when Castle submits a Form 5 expenditure report of greater than $500,000 expenditure.

Castle undertakes to keep the licence in good standing at all times that it retains an interest. Once Castle has advanced the project to a Decision to Mine, the Vendor will be required to contribute prorata to all future expenditure or dilute according to standard industry terms.