ADELAIDE-based Minotaur Exploration is reporting positive drill results from its inaugural Osborne copper-gold drill program as it looks to complete an off-market takeover for junior Breakaway Resources.
The four-hole, 1240m diamond drill program tested for copper-gold mineralisation south of the Osborne copper-gold mine in the Cloncurry district of Queensland.
Assay results from holes at the Brolga prospect recorded 0.39g per tonne of gold associated with quartz-pyrite veining, while results from the Wedgetail prospect included 1.65 per cent copper associated with sulphide-bearing breccia.
Minotaur stated that the results confirmed widespread development of copper-gold mineralisation under cover across the region south of the Osborne mine, with numerous targets to be followed up across the project area.
On 2 September it reported results of 0.45m grading 0.59 per cent copper and 0.22g/t gold.
“Together, the results from Osprey, Brolga and Wedgetail provide good evidence of a widespread Cu-Au mineralising system and a strong incentive to pursue new targets under the extensive soil cover of the Osborne project area,” the company said in a statement.
“Numerous targets remain to be sharpened and investigated.” After buying Breakaway’s WA-based Scotia project in May, Minotaur announced a binding bid implementation agreement (BIA) in July, under which
Minotaur proposed to acquire all issued shares in Breakaway through an off-market agreed takeover.
Under the offer, Breakaway shareholders would receive one Minotaur share for every 10 Breakaway shares.
The acquisition of 90 per cent of the shares on issue would enable Minotaur to move to compulsory acquisition of any outstanding shares not held at that time; by 8 October the company had acquired 86.43 per cent.
“The Breakaway Board believe that under the current difficult market conditions faced by junior exploration companies, under which raising new capital is extremely difficult, sensible business combinations such as that announced on 15 July 2013, where Minotaur Exploration proposed to acquire all of the issued shares in breakaway through an off-market agreed takeover, provide a more attractive and less dilutive solution for shareholder,” Breakaway said in a July statement.