Redstone Resources Acquires WA Projects with Drill Approvals in Hand

Rudall East covers 58 square kilometres in the Paterson terrane, a known copper-gold province. A 2009 Geoscience Australia survey identified two Tempest electromagnetic anomalies, one of which sits near a copper-bearing gossan. Surface rock chips from the area returned up to 22.9% copper and 661 grams per tonne silver. Limited drilling from the early 1980s hit 1.8% copper, 1.6% lead, 1.1% zinc and 27 grams per tonne silver. A third, much larger conductive zone to the south has never been tested.

Cockatoo Rocks was previously drilled only for shallow nickel laterite. A review of old logs found thick pegmatite intercepts – up to 50 metres – starting just 10 metres below surface. Redstone plans an aircore program to test the stacked lithium-caesium-tantalum pegmatites.

What changes the calculus for this junior explorer is the fact that program-of-work approvals are already secured for Mt Cauden and Twin Hills. In the current Western Australian permitting environment, that is a tangible advantage. A company that can start drilling next week has a head start over one waiting months for approval.

The company has also accumulated other ground that will get a fresh look: Anthiby Well (gold), Gascoyne Creek (copper-gold) and Little Bulong (nickel-gold).

Small-cap explorers trade on optionality. This deal buys options across four commodity lanes in a mineral-endowed state. The option premium is 75 million shares at 0.3 cents – roughly a $225,000 market cost at the issue price. The next concrete marker is the drilling at Mt Cauden and Twin Hills, which could begin within weeks.