Western Australia-focused explorer Forrestania Resources is sharpening its focus on exploration at its existing gold and copper projects, after deciding to withdraw from the Koolyanobbing iron-ore project.
The ASX-listed company announced on Tuesday that it had not extended the Netley Fe option, thereby withdrawing from the Koolyanobbing project.
Chairperson and interim CEO John Hannaford explained that the decision was taken following the results of the due diligence drill programme on Koolyanobbing, announced last month.
“The project scope, scale and potential has been downgraded significantly as a result of low-grade iron results.
“The company assessed the results and revised target areas and the additional costs of continuing with the project, and determined that it was no longer in the best interests of shareholders to continue,” said Hannaford.
Forrestania’s focus will now be on its existing projects. The company’s Forrestania project hosts lithium, gold and nickel prospects in close proximity to the Mt Holland lithium mine, the historic one-million-ounce Bounty gold deposit and the operating Flying Fox, and Spotted Quoll nickel mines in the well-endowed southern Forrestania Greenstone Belt.
The Southern Cross project is located in the Southern Cross Greenstone Belt and has significant potential for gold mineralisation. 