Aranjin Updates on Victory Project and Announces Australian Acquisitions
Aranjin Updates on Victory Project and
Announces Australian Acquisitions
Ulaanbaatar, Mongolia--(Newsfile Corp. - October 10, 2023) - Aranjin Resources Ltd. (TSXV: ARJN)
(the "Company" or "Aranjin Resources") is very pleased to announce an update on the Victory Nickel
Project in Mongolia and that it has also entered into agreements to acquire an extensive package of
highly prospective copper projects in Australia.
HIGHLIGHTS
Formalize 80% ownership by Aranjin Resources of the Victory Nickel Project in Mongolia.
Additional electromagnetic geophysical surveys being planned to target massive nickel
copper sulphides at Victory.
Auger drilling recommencing with the aim of completing geochemical coverage across
the Victory intrusive.
Up to 20 additional nickel and copper targets followed up with rock chipping and
mapping. Additional Auger drilling programs planned and to shortly commence.
Independent consulting group NEWEXCO appointed to review Victory Nickel and assist
with drill targeting.
Agreement reached to acquire an extensive package of highly prospective copper
projects in Australia.
Review and drill target planning of Australian Projects ready to start.
Victory Nickel Project - Mongolia
The Company has now formalized its 80% ownership interest in the Victory Nickel Project further to the
announcement on February 1, 2022, whereby the Company which sets out the terms for an exploration
joint venture (the "
Joint Venture
") with Lithium ION Energy Ltd ("
Lithium ION
"). The Joint Venture
arrangement consisted of the Company and Lithium ION granting one another reciprocal exploration
rights on their respective exploration licenses within Mongolia. Lithium ION and Aranjin granted each
other a reciprocal right to explore one another's properties, with Aranjin earning an 80% interest and
Lithium ION earning a 20% interest in all base metal projects discovered on ION's properties, and
Lithium ION earning an 80% interest and Aranjin earning a 20% interest in all lithium projects discovered
on Aranjin's properties, subject to existing royalties.
Following exploration work by both parties in 2022 and 2023, the parties agreed to formally separate
their ownership of the Baavhai Uul project previously wholly owned by Lithium ION to largely mirror the
business arrangement set out in the Joint Venture Agreement. The split of the Baavhai Uul license is
pending approval by the Mineral Resource and Petroleum Authority of Mongolia. Under the Joint
Venture, Aranjin will own 80% of the Victory Nickel project and relinquish rights to the remainder of the
license comprising the Baavhai Uul project. Lithium ION will retain a 20% free carried interest in the
Victory Nickel Project until commercial production as well as retain all lithium rights to the Victory Nickel
Project.
The Company has appointed a leading nickel specialist consulting firm in Australia, NEWEXCO, to
assist in reviewing the work completed to date on the Victory nickel project and to plan ongoing work
programs including additional electromagnetic geophysical programs and targeting of drill holes. An
auger drilling will shortly commence with the intention of completing geochemical coverage across the
Victory intrusive which hosts the known nickel copper geochemical anomaly.
Additional follow up of over 20 additional nickel and copper targets has also been completed across the
Victory license. Rock chip samples have been collected and sent for analysis. Additional auger
geochemical drilling across these anomalies is currently being planned and will commence on
completion of the drilling program at the main Victory discovery anomaly.
Australian Copper Project Transaction
The Company has entered into three separate Tenements Interests Purchase and Joint Venture
Agreements (the "Tenement Agreements"), dated October 5, 2023, with Metals of Australia Pty Ltd.
("MoA") and also with Western Wood Capital Pty Ltd. ("WWC"), whereby the Corporation will acquire an
80% interest in twelve exploration licences (the "Australian Projects") and enter into unincorporated joint
ventures with MoA and WWC to explore the Australian Projects, subject to the terms and conditions of
the Tenement Agreements (the "Australian Transaction").
Upon transfer of the tenements interest to the Corporation under the Tenement Agreements, the
Corporation will issue an aggregate of 40,000,000 common shares of the Company to MoA and
15,000,000 common shares to WWC, or to a nominee as directed by MoA and WWC, at a deemed
issue price of C$0.02 per common share (the "Consideration Shares"), and grant to MoA a 4% net
smelter returns royalty in the Bangemall and Gawler projects and to WWC a 3% net smelter returns
royalty in the Western Wood project.
A full review of existing technical data has commenced with drilling and geophysical programs currently
being planned with the intention of commencing exploration programs in early 2024.
Summary of Australian Assets
Bangemall Project - Western Australia
The Bangemall Project is located 800km north of Perth in the Gascoyne region of Western Australia and
consists of five granted exploration licenses. The Bangemall Project covers Proterozoic rocks of the
Capricorn Orogen, a belt of Archean to Proterozoic rocks, 1,000km wide and 500km long, between the
Pilbara and Yilgarn Cratons. The tenements are underlain by sedimentary rocks of the Edmund and
Collier Basins, the youngest sediments of the Capricorn Orogen, which host the Abra lead-silver deposit,
Western Australia's largest sediment hosted base metal deposit.
MoA is targeting VMS style mineralisation within its tenements, each of which contains targets defined
by previous exploration by BHP Group Limited ("BHP"), which held most of the basin in the 1990s. The
Bangemall tenements are in a prospective geological and mineralisation setting. Each individual
tenement encompasses a target defined by historical exploration work by BHP in the 1990s, which
targets remain untested by BHP following a sudden withdrawal from the region and surrender of all
tenure and these targets remain to be drill tested.
Work programs to evaluate these targets would include drill testing with at least one drill hole on each
target, with some anomalies requiring further refinement prior to drilling by applying a mixture of ground
magnetics and fixed loop electromagnetics.
Gawler Project - South Australia
The Gawler Project consists of three exploration licences in South Australia, within the Precambrian
Gawler Craton which hosts major base metal deposits at Olympic Dam, Prominent Hill, and
Carrapateena.
Two exploration licences are located in the Campoona area of the Eyre Peninsula, approximately
250km NW of Adelaide, within a sequence of sedimentary and meta-igneous rocks. Geological
mapping of the Gawler Project area has been undertaken by the SA Geological Survey which provides a
useful base map. Basement formations which outcrop in the tenement area include the Mesoproterozoic
Blue Range Beds, the Palaeoproterozoic Peter Pan Supersuite, Yadnarie Schist, Warrow Quartzite,
Cook Gap Schist, Lower Middleback Jaspilite and Upper Middleback Jaspilite. Approximately 70% of
the tenement area has a thin cover of Holocene sands and Pleistocene sands, silts, clays and gravels.
Historic geochemistry and drilling completed by Rio Tinto Group and BHP identified numerous base
metal anomalisms across the Gawler Project that are interpreted to be highly significant for the Gawler
Craton. A high priority gravity target located on a NNE trending structure has been identified and
remains to be tested by drilling. Nearby drill holes show significant base metal anomalism. It appears
subsequent explorers have not tested this anomaly, and a detailed compilation study is in progress to
confirm.
The third Exploration Licence is located in the Mabel Creek area approximately 80km NW of Coober
Pedy and 850km NNW of Adelaide. Basement geology comprises the Palaeoproterozoic Coober Pedy
Ridge, an ENE trending magnetic block of variable magnetic intensity separating the Mount Woods Inlier
to the south-east from the Mabel Creek Inlier to the north. Previous exploration has shown that the area is
covered by sedimentary sequences ranging from 40 to 100m deep. The Gawler Project area has only
experienced modest levels of prior exploration, yet is ideally situated in the northern extent of the Olympic
Dam Cu-Au province, with untested geophysical anomalies already defined and ripe for drilling. The
broader area in which EL6764 is located was recently identified by the winner and runner-up of the SA
Government "Gawler Challenge" as one of the key prospective areas underexplored for iron-oxide-
copper-gold (IOCG) mineralisation. It was also identified as prospective for gold mineralisation of the
Challenger Gold deposit style.
In 2012 AngloGold Ashanti Limited covered the area with detailed aeromagnetics identifying four high
priority targets. They undertook significant ground exploration on one of the defined targets, the
Coronation Bore Prospect, including ground gravity, ground magnetics, and 1,740m of diamond drilling.
Three remaining untested gravity/magnetic anomalies on Mable Creek remain prospective for IOCG
mineralisation.
Western Wood Project - New South Wales
The Western Wood Project includes four granted exploration licences in the state of New South Wales
with two being located in the Broken Hill area and two being located in the Cobar area, both prolific
mineral fields.
Exploration license 8551 covers a magnetic anomaly which is hosted in a basement of Early Palaeozoic
rocks of the Thompson Orogen, which are covered by Cretaceous sediments of the Eromanga Basin.
Regional water bore and stratigraphic drilling indicate depths to basement of 70m to 200m. The shape
and intensity of the anomaly suggests a moderately magnetic intrusive body as the source. Cobar style
base metal mineralisation is the target.
Exploration license 8552 covers a 5km long oval, NNE trending magnetic anomaly in an area of
unconsolidated sand, silt and clay cover up to 100m thick. Basement geology is interpreted to be part of
the Neoproterozoic to Cambrian Delamerian Orogen. The shape and intensity of the anomaly suggests
a moderately magnetic intrusive body as the source.
Exploration licenses 8553 is located 15km W of the Cobar Goldfield and the CSA Copper Mine within
the Devonian Cobar Basin. Rock types are dominated by sandstones and siltstones of the Amphitheatre
Group. A gravity anomaly in the NW quadrant of the Licence forms the main target. A gravity survey and
geophysical modelling has resulted in the definition of a 1.5 x 1.5km target zone of anomalous density
occurring at a depth of 130 - 400m. Rock chip geochemistry (26 samples) over the gravity anomaly,
returned weakly anomalous lead and sulphur results in 6 samples. The gravity anomaly is considered a
target for Cobar style, structurally controlled base metal ± gold mineralisation.
Exploration license 9236 is considered prospective for metasediment hosted Ag-Pb-Zn deposits being
located 40km E of the world-class Broken Hill orebodies. Bedrock consists of metamorphic rocks,
mostly gneisses, of the Early Proterozoic Willyama Supergroup, with a ferruginous and saprolitic cover
about 80m thick. The area has received only modest levels of prior exploration with most explorers
focusing their efforts further west near Broken Hill and where mineralised bedrock outcrops or is close to
surface. A large area of base metal anomalism associated with a N-S structure has been recorded in
RAB drilling by previous explorers.
The Company looks forward to finalizing the Australian Transaction as it continues to build a portfolio of
prospective exploration projects across jurisdictions that we know well - Mongolia and Australia are two
such jurisdictions where the management team has deep experience. Together with its existing
Mongolian projects, the Australian Transaction will mean we now have a broad range of projects under
ownership. The Company continues to work towards a dual listing on the ASX in early 2024.
Bayan Under Copper Project- Mongolia
The Company has planned a single drill hole on an interpreted porphyry copper target in the southeast of
the licence that has never been drilled. The target is in the centre of a large area of alteration classical to
the porphyry copper style and the drill hole is testing an induced polarisation geophysical anomaly. This
drill hole was planned to be completed in late 2023 and will now be delayed until early 2024 with the
exploration teams efforts and funding focused on the Victory Nickel Project.
Mr. Matthew Wood, Executive Chairman of Aranjin Resources stated, "We are extremely
pleased with the company's progress at the Victory Nickel Project and to be able to secure a
significant portfolio of exploration licenses in Australia with ready defined drill targets. We are
also very pleased to formalize our ownership of the Victory Nickel Project which will be a major
focus for the Company in the next 12 months."
Matthew Wood, Executive Chairman of the Company, is a director of both MoA and WWC. As such,
MoA and WWC are considered "Non-Arm's Length Parties" of the Company pursuant to the policies of
the TSX Venture Exchange (the "TSXV"). As the vendors of the Australian Projects are Non-Arm's
Length Parties of the Company, disinterested shareholder approval is required for the issuance of the
Consideration Shares under the Australian Transaction pursuant to subsections 5.14(b) and 5.16(a) of
TSXV Policy 5.3 -
Acquisitions and Disposition of Non-cash Assets
("Policy 5.3"). In addition to
seeking shareholder approval for the issuance of the Consideration Shares, the Company also intends
to seek disinterested shareholder approval to ratify the Australian Transaction for evidence of value
purposes under section 5.15 of Policy 5.3 at its next annual general and special meeting of shareholders
scheduled to be held on November 6, 2023.
Common shares of the Company held by Mr. Wood or any
associates will not be counted for the purposes of the foregoing resolutions.
The Australian Transaction is not a "Fundamental Acquisition" under Policy 5.3 as the Company does
not intend to devote 50% of its assets, resources, planned expenditures or management time to the
Australian properties over the next 12 month period.
The completion of the Australian Transaction is subject to customary closing conditions, receipt of
shareholder approvals and TSXV approval.
The scientific and technical information contained in this news release has been reviewed and approved
by Enkhtuvshin Khishigsuren, a non-independent Qualified Person for the purposes of National
Instrument 43-101 -
Disclosure Standards for Mineral Projects
.
On behalf of the Board
Matthew Wood
Executive Chairman
Aranjin Resources Ltd.
+976 7732 1914
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Cautionary Statements
Certain information contained herein constitutes forward-looking information or statements under
applicable securities legislation and rules. Such statements include, but are not limited to, statements
with respect to the Australian Transaction, any approval thereof by the TSXV or by shareholders of the
Company, and any intended exploratory work or exploration targets of the Company on the Australian
Projects. Forward-Looking statements are based on the opinions and estimates of management as of
the date such statements are made and are subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or achievements of Aranjin to be
materially different from those expressed or implied by such forward-looking statements, including, but
not limited to: (i) any inability of Aranjin to satisfy conditions imposed by the TSXV on the Australian
Transaction or to obtain TSXV approval of the Australian Transaction for any other reason; (ii) any
inability of Aranjin to obtain shareholder approval for the Australian Transaction or issuance of the
Consideration Shares; and (iii) any change in the circumstances of the Company, whether internal or
external, whether affecting the Company particularly, the Australian Projects particularly, or the general
mineral and/or general global markets, which could cause the Company to reconsider and adjust or
abandon any exploration work it currently intends for the Australian Projects. Although management of
Aranjin has attempted to identify important factors that could cause actual results to differ materially from
those contained in forward-looking statements, there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that such statements will prove to be
accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Neither
party will update any forward-looking statements or forward-looking information that are incorporated by
reference herein, except as required by applicable securities laws. The parties caution readers not to
place undue reliance on these forward-looking statements and it does not undertake any obligation to
revise and disseminate forward-looking statements to reflect events or circumstances after the date
hereof, or to reflect the occurrence of or non-occurrence of any events.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/183460