Octava Minerals raises $1.5m, picks up option on Tasmanian copper-silver-zinc project

Octava Minerals has an option to acquire the Federation copper-silver-zinc project in Tasmania where historical drilling returned significant intersections.

Proceeds from the $1.5m placement will enable Octava to carry out due diligence and drilling on the Federation copper-silver-zinc project. Pic: Getty Images

• Company secures option to acquire Federation copper-silver-zinc project in Tasmania

• Historical drilling returned significant mineralisation intercepts.

• Octava raises $1.5m through a two tranche share placement for exploration and metallurgical testwork

Special Report: Octava Minerals has signed a conditional agreement to acquire the Federation copper-silver-zinc project in western Tasmania and received firm commitments from sophisticated investors for a $1.5m placement.

Federation comprises two granted tenements covering 121km2 about 12km west of the town of Zeehan and is on the margin of the Heemskirk Granite dome – a multiphase intrusion containing various phases of mineralisation.

It is close to several mining centres with processing and infrastructure, as well as a number of hydropower stations.

The project has seen historical exploration with Renison drilling 18 diamond drill holes into the Sweeney’s prospect in the late 1970s.

While eight of the holes missed the target mineralisation, the other 10 holes returned significant intersections such as:

• 23m grading 1.19% copper, 1.70% zinc, 121g/t silver and 1.17% tin from 71m;
• 24m at 0.25% Cu, 0.52% Zn, 42g/t Ag and 0.27% Sn from 112m; and
• 31.4m at 0.19% Cu, 1.92% Zn, 31g/t Ag and 0.62% Sn from 210m.

Despite these results, the shape and full tonnage potential of the Sweeney’s mineralisation is not well understood with Octava Minerals (ASX:OCT) noting there are strong indications from the historical drilling that a potentially larger remobilised volcanogenic massive sulphide system might be present.

Adding interest, the wider Federation project area contains a number of additional prospective exploration targets, which will also be investigated.

Location Map - Federation copper-silver-zinc project. Pic: Octava Minerals

Placement to fund exploration

Demonstrating its firm belief in the prospectivity of Federation, OCT has raised $1.5m through the issue of 50m shares at 3c each to fund preliminary, due diligence exploration and drilling.

The two-tranche placement will include one free attaching option exercisable at 8c and expiring in three years for every two shares applied for.

Proceeds will also be used to continue encouraging metallurgical testwork with CSIRO at its Byro REE/Li project in Western Australia’s Gascoyne region.

“We are very pleased with the strong support for the placement which will be used to continue our planned exploration program and allow us to commence due diligence on the Federation project in Western Tasmania,” chief executive officer Bevan Wakelam said.

“The option on Federation provides a unique opportunity.

“Previous drilling by Renison back in the late 70’s at the Sweeney’s Prospect encountered significant intersections of copper, zinc and silver, that were never followed up, due a focus on exploration for tin at the time.

“The historic mineral grades, alteration assemblages and geological structures encountered at Federation point to a potentially significant discovery opportunity. The western region of Tasmania has a strong history of prospectivity and mineral discovery.”

This article was developed in collaboration with Octava Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Octava Minerals raises $1.5m, picks up option on Tasmanian copper-silver-zinc project