Dreadnought Expands Mangaroon Gold Project with Strategic Mining Lease Acquisition
Dreadnought Resources has further solidified its position in Western Australia's Gascoyne region by acquiring additional gold-prospective ground at its 100%-owned Mangaroon Gold Project, including a strategic mining lease containing historical workings with high-grade gold potential.
The Mangaroon Gold Project expansion comes at a pivotal time for the company as it pushes forward with its near-term production strategy. This strategic move adds approximately 30km² of highly prospective ground within the Edmund Group sediments through the acquisition of three tenements.
Managing Director Dean Tuck emphasised the significance of this development: "This acquisition has continued to expand our footprint over highly prospective gold corridors with historical gold occurrences including a sixth mining lease. The acquisition aligns perfectly with our near-term production and discovery strategy at Mangaroon."
McCarthy Workings: Unveiling High-Grade Potential
The cornerstone of the acquisition is the McCarthy Workings, a historical mining area located on the newly acquired mining lease M09/63. While historical production volumes remain undocumented, recent rock chip samples from mullock heaps have confirmed significant gold mineralisation:
• 15.1 g/t Au from sample MCRK010
• 3.4 g/t Au from sample MCRK007
These impressive results suggest considerable exploration upside at McCarthy Workings, which contains saddle reefs and stockworks within a tightly folded anticline in Edmund Group sediments.
Why This Location Matters
The tenements occupy a geologically significant position between the crustal-scale Lyons River and Edmund Faults, with the Minnie Creek Fault terminating within the area. This favourable structural setting substantially enhances the gold prospectivity of the region.
Previous exploration efforts at McCarthy Workings were limited and methodologically flawed. Despite the vertical orientation of the mineralised veins, historical drill holes were drilled vertically—an ineffective approach for testing this style of mineralisation.
Furthermore, the few angled holes that were drilled didn't penetrate deep enough to test beneath the old workings, leaving the true potential unexplored.
Accelerating Exploration Timeline
Dreadnought has outlined an ambitious exploration schedule for the newly acquired Mangaroon Gold Project tenements:
1. Mapping and surface sampling in April 2025
2. RC drilling program planned for June 2025
This exploration will be integrated with the company's broader drilling campaign, which is expected to commence this month at several targets on existing mining leases, including Star of Mangaroon, Popeye, Pritchard's, Two Peaks, and Lead Gold Mine.
The Path to Self-Funded Exploration
The acquisition strengthens Dreadnought's strategy to transition into a self-funded explorer at the Mangaroon Gold Project. The company is focusing on developing high-grade open pit operations at the Star of Mangaroon and other mining leases.
To optimise capital efficiency, Dreadnought plans to outsource mining, development, haulage, and processing to third parties. This model aims to generate internal cash flow to fund ongoing exploration activities.
Consequently, this approach reduces reliance on market funding for making discoveries across the expansive Mangaroon Project, which now covers over 5,000km².
Understanding Gold Mineralisation in the Region
The Mangaroon region is situated within the Gascoyne Province of Western Australia, a geologically complex area with significant mineral potential. The gold mineralisation occurs primarily within the Edmund Group sediments and is associated with major crustal-scale fault systems.
Geological Setting
The Edmund Group consists of sedimentary rocks deposited approximately 1.62 to 1.47 billion years ago. These rocks have undergone multiple phases of deformation and metamorphism, creating favourable conditions for gold mineralisation.
Moreover, the presence of intrusive bodies, such as the Narimbunna Dolerite, further enhances the prospectivity of the area.
Mineralisation Styles
At McCarthy Workings, gold mineralisation occurs in two main forms:
• Saddle Reefs: Gold-bearing quartz veins that form in the hinges of folded rock units, where the folding creates openings for gold-bearing fluid deposition.
• Stockworks: Networks of small quartz veins containing gold and other minerals, formed when hydrothermal fluids penetrate fractures in the host rock.
The presence of these mineralisation styles in a tightly folded anticline structure increases the potential for significant gold accumulations.
Investment Perspective: The Mangaroon Opportunity
The Mangaroon Gold Project represents a significant opportunity in the Australian gold sector – a consolidated land package with multiple high-grade gold occurrences that has never been subjected to modern, systematic exploration.
Historical ownership was fractured and small-scale, limiting previous exploration efforts. The project's upside is substantial, with:
• Shallow, high-grade gold resources already defined at Star of Mangaroon (56,600 tonnes at 12.8 g/t Au for 23,400 ounces)
• Exceptional metallurgical recoveries averaging 96.7%, including 74.4% from gravity recovery
• Multiple mining leases with historical production but minimal modern exploration
• Camp-scale gold potential with project-wide surveys identifying additional large-scale targets
With approximately $20 million in cash, Dreadnought is well-funded to advance its exploration and development strategy at Mangaroon, potentially positioning the company to join the ranks of Australia's gold producers.
Transaction Details
The key terms of the acquisition include:
• Dreadnought to own 100% of M09/63, E09/2195, and L09/27 upon settlement
• Payment of $200,000 at settlement
• Issuance of fully paid ordinary shares, escrowed for 12 months, valued at $200,000 based on a 5-day VWAP at settlement
• 1% net smelter royalty payable
This acquisition further strengthens Dreadnought's strategic position in the Mangaroon region, adding to its extensive portfolio of gold-prospective tenements and enhancing its potential for near-term production and long-term exploration success.
Ready to Invest in Dreadnought's Growing Gold Potential?
Dreadnought Resources' strategic acquisition at Mangaroon represents a compelling opportunity in the Australian gold sector with high-grade potential and a clear path to self-funded exploration. To learn more about this expanding gold project and how you can be part of Dreadnought's journey towards production, visit their investor page for comprehensive information about their portfolio and growth strategy.
