Australian junior Hawkstone Mining, which owns the Big Sandy lithium project in the US, is diversifying its portfolio with the addition of a gold project in Idaho, as weakness in the lithium market continues.
The company on Monday announced that it had agreed to acquire the Lone Pine gold project, located in the Trans-Challis Fault System, from Inception Mining for $510 000.
The project was last mined in 1907 and has a mineral resource estimate of 71 128 oz of gold, from 122 600 t of gold grading 18.06 g/t. It lies within 20 km of the Arnett Creek and Beartrack mines operated by Revival Gold, as well as the historic Queen of the Hills and King Solomon mines, respectively.
Hawkstone will start drilling on the project during the second quarter, with the aim to publish a maiden Joint Ore Reserves Commission-compliant resource, since the project has not been subjected to modern exploration techniques.
The company has received commitments to raise $1-million from sophisticated investors at an issue price of $0.006, with a free attaching option.
Hawkstone MD Paul Lloyd explained that the company had decided to diversify its portfolio to combat the ongoing weakness in the lithium carbonate equivalent price, and overall negative sentiment in the investment community to lithium producers.
He added that the Lone Pine acquisition allowed the company to leverage off the years of experience working in the US and the exploration team that has been built to date.
Lloyd stressed that Hawkstone remained committed to the Big Sandy lithium project and that it would continue to advance an environmental study, to facilitate the issue of a plan of exploration.