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Taiton Resources Submits Application to Acquire the Kingsgate Project

16 January 2024 09:46
ASX: T88

Taiton Resources Limited (ASX:T88) is making notable strides in its molybdenum exploration in Australia, announcing its applied for two new Exploration Licences, ELA6699 and ELA6702, near the prospective Kingsgate Project in New South Wales, covering a total area of roughly 310 square kilometres.

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Figure 1: Location of the ELA 6699 and ELA 6702.

The Kingsgate Project

Situated 20 kilometres east of Glen Innes in the Kingsgate Mining District, the Kingsgate Project holds historical significance as the second-largest molybdenum producer in Australia from the early 1880s to the late 1920s, extracting a total of 350t molybdenum (Mo) and 200t bismuth (Bi).

Previously under the ownership of Auzex Resources Limited, the Kingsgate Project was extensively explored between 2006 and 2010. Auzex also carried out work across ELA6699 and the surrounding area, leading Taiton Resources to believe the area is prospective for high-grade Molybdenum and has the potential to be a near term production asset.

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Figure 2: Tenement location plan showing the Kingsgate high-grade Molybdenum Project and Taiton Resources Limited ELA 6702 and ELA 6699.

Auzex Exploration

Auzex undertook comprehensive exploration efforts at the tenements, including multiple drill programs, metallurgical studies, a scoping study and a Feasibility Study.

Autex additionally completed a Trial Mining process, which resulted in 11,700 bcm of material being mined with high-grade Mo and Bi ore stockpiled.

The main quartz pipe mined during this period was 5 – 9 metres in diameter and had an average grade of 0.34% Mo and 0.64% Bi.

Built upon this thorough exploration groundwork, Taiton Resources is poised to advance confidently in its molybdenum exploration endeavours.

Historical Drilling at Kingsgate

Multiple drilling programs were conducted at the Kingsgate property, involving 330 holes, covering 15,000 metres, targeting multiple high-grade molybdenum and bismuth bearing quartz pipes.

While its reported a total of 23 pipes and surface anomalies were examined, the geology and continuity of mineralisation still remain unclear, necessitating Taiton complete further drilling to ascertain this.

However, the results do confirm the high-grade nature of the molybdenum and bismuth mineralisation and were successful in identifying individual mineralised zones, revealing a larger mineralisation zone.

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Figure 3: Historic drilling location within broader trial mining footprint completed by Auzex Resources Limited, with selected high-grade (>0.1% Mo over widths ≥ 5 metres) intervals shown.

Taiton’s Plan

The Exploration Licence Applications are currently under review by the Department of Regional NSW’s Mining, Exploration, and Geoscience division.

Pending approval, Taiton intends to scrutinise the historical dataset and conduct a field site visit to comprehensively assess the area, aiming to gain a deeper understanding of the Project.

Although a lot of work still needs to be completed at the Project, one of Taiton’s primary focuses is to determine what needs to be done to establish a maiden JORC resource and advance the Project towards a production phase.

Additional Exploration Endeavours

Taiton’s growth strategy to expand its landholdings is extremely timely, given the Australian Government announced in December last year that molybdenum was deemed a “critical mineral’ to Australia’s energy and security requirements

This newfound classification grants Taiton eligibility for industry support initiatives, including the $4 billion Critical Minerals facility, aimed at facilitating the financing and development of projects.

Molybdenum is a chemical element used to strengthen steel, without adding excessive extra weight, making it invaluable for diverse applications such as construction, defence and oil and gas industries.

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Figure 4: Uses of molybdenum

Company Commentary

Taiton Resources Executive Director Noel Ong said the application for the Kingsgate Project is in line with the Company’s aim of creating value for its shareholders.

“The Kingsgate high-grade molybdenum Project has a lot of historical work completed and this will allow Taiton to work more efficiently to take the project to the ultimate goal of creating a producing asset,” he said.

“Taiton is excited to work meticulously to make this project work. The historical drilling and subsequent work by Auzex Resources Limited between 2005 and 2009 show the robustness of the project. The fallout of the 2009 Financial crisis and the subsequent perceived low value of molybdenum over the last 10 years has meant that Taiton is the beneficiary of the settling dust.”

“The advanced work by Auzex with the completion of a Feasibility Study clearly shows that there is potential within the existing cluster of high grade molybdenum quartz pipes and also, outside the known pipes to discover more molybdenum.”

“Taiton will now systematically work through the datasets and start to piece together what is looking like a promising near production project. There are still a lot of work required to make this project stand on its merits but the team at Taiton is confident that this is a matter of process in the next quarter. The economics and the future demand for molybdenum has completely changed and Taiton is preparing itself to take advantage of the future decarbonisation environment.”

Further information regarding the announcement can be found online Taiton’s investor hub.

T88’s Australian Securities Exchange-listed share price is currently trading at $0.066 (9.15am UTC+ 8 hours).

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