Forrestania Resources Cancels Netley Acquisition; to Focus on Gold and Copper Projects

Forrestania Resources Limited (ASX:FRS) has decided not to extend the Netley Fe Option, effectively withdrawing from the Koolyanobbing Fe project. The company allowed its option to acquire Netley Minerals Pty Ltd to lapse, signaling a shift in focus towards its gold and copper projects in Western Australia. This decision reflects Forrestania's strategic realignment to concentrate its resources and efforts on advancing its existing WA-based projects.

Chairman and Interim CEO John Hannaford remarked that following the results from the Due Diligence drill program on the Koolyanobbing Fe project, announced on 23 August 2024, the company has decided not to pursue the Option to acquire Netley and its associated iron ore project. The decision stems from a significant downgrade in the project's scope and potential due to disappointing iron ore grades. After evaluating the low-grade results, revised target areas, and the escalating costs associated with the project, the company concluded that continuing with the acquisition would not be in the best interests of its shareholders. Consequently, the focus will now shift to advancing exploration efforts on the company's existing gold and copper projects, with drill programs scheduled for the upcoming quarter.

Forrestania Resources is an Australian mining company focused on lithium, gold, and nickel exploration in Western Australia. The company holds significant exploration tenements in key regions such as Forrestania, Southern Cross, and the Eastern Goldfields, demonstrating its strategic focus on high-potential areas for mineral discovery. Their Forrestania Project is strategically located near significant mineral deposits and operational mines, providing a strong foundation for exploration and development.

The project area boasts lithium prospects close to the Mt Holland Lithium Mine, which has a substantial resource of 189Mt at 1.5% Li2O, as well as gold prospects near the historic 1Moz Bounty gold deposit. Additionally, the project is in proximity to the active Flying Fox and Spotted Quoll nickel mines, highlighting its potential within the highly mineralized southern Forrestania Greenstone Belt.

The Southern Cross Project, situated within the Southern Cross Greenstone Belt, demonstrates considerable potential for gold mineralization. This area is known for its historical gold production and promising exploration targets, enhancing the project's appeal to investors and developers focused on gold mining.

The Eastern Goldfields Project, located in the Norseman-Wiluna Greenstone Belt of the Yilgarn Craton, encompasses a substantial land package of approximately 1,800 square kilometers across 12 Exploration Licenses and six Exploration License Applications. The tenements, which span a non-contiguous 300-kilometer length, are strategically positioned on or near greenstone belts. Previous exploration activities in this region have targeted gold, copper, and lithium, underscoring the project's diverse mineral potential.