Indicative Offers Sought for Adaman Group’s Kirkalocka Gold Project, Exploration Assets

The Administrators of Adaman Resources Pty Ltd (Administrators Appointed) and certain of its subsidiaries (“the Group“) are seeking immediate expressions of interest to recapitalise the Group or to acquire the Group’s assets, including the Group’s flagship Kirkalocka Gold Project (“Kirkalocka” or “Project“) located 75km south of Mt Magnet in the Murchison Region of Western Australia. The Administrators are seeking indicative offers for either acquisition of the Project, wholesale aquisition of the Group, or such other arrangement to the satisfaction of creditors of the Group.

Kirkalocka possesses a combined JORC (2012)-compliant Mineral Resource of 7.5Mt @ 1.37 g/t Au for 320koz gold and 2Mtpa processing plant consisting of a mill, CIL plant, high-quality road network and 110-person camp facility.

Kirkalocka presents a rare opportunity for an existing gold development or production company looking to expand into a new region with an established mill, prospective ground and developed supporting infrastructure.

Key Highlights:

  • 7.5Mt @ 1.37 g/t Au for 320koz gold Mineral Resource (cut-off grade 0.5g/t) with further exploration potential upside
  • 2Mtpa gold processing plant with mill and CIL plant, with potential to upgrade to 2.5Mtpa
  • located approximately 230km east of Geraldton and 75km south of Mt Magnet, well supported by local minings services and modern infrastructure and road network
  • comprised of 9 mining leases, 12 exploration leases and 5 prospecting leases (totalling 432 square km)
  • in-situ 110 person camp, a gravel air strip, site offices, a warehouse, workshops and powerhouse

Figure 1: Kirkalocka Project

Other Exploration Assets Available

In addition to the flagship Kirkalocka asset, the Administrators are also seeking indicative offers for the Group’s:

  • Snake Well project (“Snake Well“), located 170km north-east of Geraldton; and
  • Corinthia underground project (“Corinthia“), located 15km north of Southern Cross.

​Snake Well is an exploration opportunity that currently possesses a JORC (2012)-compliant 600kt @ 4.3 g/t Au for 80koz gold Mineral Resource (cut-off grade 0.5g/t). Adaman purchased Snake Well in 2018 from Kalamazoo Resources Ltd and was in the process of preparing a feasibility study for processing ore from Snake Well’s Mixy and A-zone deposits at Kirkalocka.

Corinthia is situated in the Southern Cross Province of the Archaean Yilgarn Craton. It lies on the eastern margin of the Southern Cross greenstone belt that extends along strike for 300km from Mt Jackson in the north to Hatter Hill in the south. Corinthia posseses a JORC (2012)-compliant 6.3Mt @ 1.67 g/t Au for 340koz gold Mineral Resource (cut-off grade 0.5g/t).

The Administrators are seeking indicative offers to jointly or separately acquire Snake Well, Corinthia, Kirkalocka, the Group, or provide any such other arrangement to the satisfaction of the Group’s creditors.