Midas Minerals picking up Carnavale Resources’ Barracuda platinum-nickel-copper play

Midas Minerals (ASX:MM1) has a new target to drill later this year following the acquisition of Carnavale Resources’ (ASX:CAV) Barracuda project in WA. 

The Barracuda acreage is prospective for platinum group elements (PGE,) nickel, and copper. It sits adjacent the western boundary of Midas Minerals’s Wondinong PGE target zone, part of its Challa project. 

The big takeaway: Challa is also a PGE-nickel-copper project, located near Mt. Magnet with early stage evidence of gold mineralisation. 

By picking up Carnavale’s acreage nextdoor, Midas effectively expands the tenement footprint at Challa and gives itself a potential new body of targets to log ahead of forming a JORC resource. 

Exploration will get underway immediately with Midas to spill out into the Barracuda acreage after paying an initial sum. It will commence drilling at Challa before the end of the year. 

Geochemical sampling first: management

“Midas will extend its geochemical sampling with the aim to define drill targets over known PGE mineralisation at Wondinong,” Midas Minerals MD Mark Calderwood said. 

“It is good to have secured the entire Wondinong PGE target zone prior to drilling at Challa later this year.” 

“Midas’s ongoing exploration at Challa has focused on infill geochemical sampling and prioritisation of 2021 VTEM geophysical anomalies.”

Initial payment allows access

At this current time, Midas Minerals has only paid $20,000 to Carnavale to acquire exploration licence E58/551, but shareholders should note it has executed a legally binding Heads of Agreement (HoA) contract.

Once Midas completes a JORC resource for the tenement area, the company will pay Carnavale $0.5m. Carnavale will retain a 0.5% Net Smelter Royalty (NSR). 

Midas retains the right to cancel the deal at any time after paying the first $20,000, meaning shareholders will be protected if the acreage turns out to be a dud. 

In the background, Midas continues to oversee its maiden drill run at its separate WA-based Newington lithium-gold project.

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