JOHANNESBURG (miningweekly.com) – Following a positive due diligence, triple-listed Ferrum Crescent aims to secure the requisite funding to exercise its exclusive option over GoldQuest.

The metals project developer completed comprehensive due diligence investigations on GoldQuest and its 100% owned lead-zinc exploration projects in northern Spain, namely the 2 024 ha Toral project, in the Province of Leon, and the Lago project, in the Province of Galicia.

Due diligence, including field trips and desktop study and geological assessments, indicated “major potential” for reinterpretation of historical data and the delivery of a new geological model identifying significant continuous zones of mineralisation.

“Following my recent field trip and coordination with our newly restructured team in Spain focused on the reinterpretation of the geology and metallurgy aspects of the Iberian projects, I believe the Toral and Lago assets both hold significant potential for the generation of shareholder value,” explained Ferrum executive chairperson Justin Tooth.

Toral and Lago represented an opportunity to “prove up significant projects” with strong economics in a politically stable environment with existing infrastructure, he added.

The ultimate aim was to establish a credible mineral reserve in a cost-effective manner to attract potential future acquirers or development finance groups.

Ferrum, which held the exclusive option until July 31 to acquire 100% of GoldQuest for £460 000, aimed to pursue a low-cost, highly-focused work programme to define the economic and geological characteristics of both projects, including the definition of Joint Ore Reserve Committee-compliant resource estimates.

The group would also re-examine the scale and continuity of mineralisation at the Toral project, the mineral potential of which Ferrum believed was underestimated.

“Toral, in particular, is interesting in terms of its scale and potential economics, if we can demonstrate that multiple subparallel zones and an entire higher level area of mineralisation have been missed historically,” Tooth added.

In March, the government of Leon renewed the licences of both the Toral and Lago projects for another year to allow for basic work programmes to be undertaken.