Redstone Resources Enhances Exposure to High-Demand Commodities with New Acquisition

Redstone Resources (ASX: RDS) is set to acquire a suite of highly-prospective projects in Western Australia offering exposure to multiple high-demand commodities including gold, lithium, copper, and Mt Isa-style copper-gold and base metal systems.

The company has inked a deal with private explorer Hurricane Prospecting for a consideration of 75 million fully-paid Redstone shares priced at $0.003 each to be placed in voluntary escrow for 12 months, plus a 1.5% net smelter royalty.

The Tier-1 package includes the Mt Cauden (gold-lithium), Twin Hills (gold), Rudall East (copper-gold-base metals) and Cockatoo Rocks (lithium-caesium-tantalum pegmatite) projects which have been subject to limited exploration over the past 20 years.

Approvals have already been secured for first-pass drilling at Mt Cauden and Twin Hills, which contain several identified walk-up targets.

Value-Accretive Deal

The acquisition is part of Redstone’s portfolio expansion strategy focused on securing prolific ground within active exploration corridors and proximal to mining infrastructure, allowing the company to unlock additional value through the application of modern exploration methods and targeting techniques.

Mt Cauden comprises over 40 square kilometres of under-explored ground in the proven gold-lithium Youanmi Greenstone Belt, southeast of the Marvel Loch gold plant and north of the Mt Holland lithium mine in the Southern Cross gold district.

Historical soil samples and limited shallow drilling identified low-grade but continuous gold mineralisation that could potentially be the edge of a mineralising system with cross-sections showing that it remains open at depth.

The entire project tenure is also prospective for lithium-bearing pegmatite, with the nearby Youanmi Terrane hosting several discoveries including the world-class Mt Holland mine which hosts a resource of 189 million tonnes at 1.5% lithium oxide.

Chair Richard Homsany said the value-accretive deal presented a compelling opportunity to accelerate exploration across established mineral districts while leveraging existing infrastructure, accessibility, and proven mineral endowment in a capital-efficient manner.

Renewed Exploration Focus

Twin Hills comprises 60sqkm of tenure in the world-class Leonora-Menzies mining centre near to existing mills and significant infrastructure.

Historical drilling identified gold mineralisation in a favourable structure, including significant thick intersections of up to 17m at 1.23 grams per tonne from 28m downhole that remain open at depth.

Redstone believes the limited modern exploration and target generative work present an opportunity for a renewed exploration focus and gold discovery potential.

The company hase already secured program of work approvals for Mt Cauden and Twin Hills.

Mt Isa/Rammelsberg-Style Deposit

The Rudall East project covers 58 sq km in the Paterson terrane, and is prospective for Mt Isa/Rammelsberg-style copper-lead-zinc-silver and sedimentary exhalative gold.

It contains two untested Tempest electromagnetic anomalies identified in a Geoscience Australia 2009 survey, one of which is proximal to a copper-bearing gossan.

A third, much larger area of conductive basement to the south has also not yet been adequately tested and coincides with very limited historical drilling results from the early 1980s of up to 1.8% copper, 1.6% lead, 1.1% zinc and 27g/t silver.

Surface rock chip sampling over the same area has recovered oxidised mineralisation with up to 22.9% copper and 661g/t silver.

Greenfields LCT Project

Limited historical drilling at the greenfields Cockatoo Rocks project indicated the presence of ultramafic units striking parallel to the regional Emu Fault, however it was solely focused on shallow nickel laterite mineralisation with no regard to LCT pegmatite prospectivity.

A review of historical drill logs has since identified thick (up to 50m) and shallow (10m from surface) pegmatite intercepts in reverse circulation holes, showing high potential for multiple stacked, relatively flat-lying LCT pegmatites.

Redstone has planned an extensive shallow aircore drilling program to penetrate through the greenstone into the shallow pegmatite.

The new project suite complements other opportunities at Anthiby Well (gold), Gascoyne Creek (copper-gold), and Little Bulong (nickel-gold).

These projects have also been subject to limited past exploration, and will be reviewed to better understand geological and structural controls that could potentially unlock new sources of mineralisation.