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| The legendary Cadia mine in New South Wales, which is Australia’s largest gold mine and owned by Newmont Corporation, produced a massive 597,000 ounces of gold in 2023.
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| The Cowal mine owned by Evolution Mining is on pace to produce 320,000 ounces of gold in 2024.
And the Northparkes copper-gold mine, built by Rio Tinto and now owned by Evolution Mining, has been in operation for more than 30 years.
All three of these behemoths are located in the prolific Macquarie Arc, a belt of ancient volcanic rocks that runs through New South Wales.
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| And if you want to get in on what could be the next Tier 1 copper-gold discovery in the belt, you’ll want to take a closer look at Inflection Resources (AUCU.CN; AUCUF.OTC).
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| As you’re about to see, Inflection not only controls THE commanding land position along the northern portion of the Macquarie Arc, but it has attracted a fantastically rich joint-venture deal with AngloGold Ashanti that could initially be worth as much as A$145 million.
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| The result: Inflection is getting paid to explore its 100% owned regional-scale land position and is conducting one of the world’s most exciting greenfields exploration programs.
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| The good news: Those exploration efforts have taken on a new life with some intriguing new results.
The better news: Those results have yet to be factored into Inflection’s share price...keeping the ground-floor window open for now.
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| A Massive Greenfields Project
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| Inflection’s 100% owned land holdings along the northern portion of the Macquarie Arc cover more than 7,000 square kilometers.
The northern half of the Macquarie arc is completely underexplored, mainly because the belt that hosts Cadia, Cowal and Northparkes dips under a layer of post-mineral sedimentary cover masking the underlying prospective geology.
That layer of younger sedimentary rock has made searching for Australia’s next big mine more challenging, but that challenge also created the massive opportunity to lock up the last, vast package of relatively unexplored land in this prolific and mining friendly region where investment in exploration is welcomed by both the state and federal governments.
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| Inflection Resources controls a truly massive land position in one of the world’s richest mining districts.
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| Plus, Inflection is taking a “drill and kill” approach to testing the dozens of massive targets within its licenses which critically have never been drill tested before unlike many juniors that are exploring old projects that have perhaps been drilled many times before.
The company uses cost-effective mud rotary drill to quickly and inexpensively cut through the layer of post-mineral cover and then finishes these holes with diamond core drilling into the basement rock.
The company typically drills two or three holes into each massive target and if key, favorable attributes are absent in the form of mineralization or alteration it moves onto the next target.
This is a very disciplined and systematic approach to testing lots of targets as quickly and as cost effectively as possible and a model more typically employed by the major mining companies rather than the average junior explorer.
This method allows the company to quickly assess the potential of a target and either come back with additional step-out drilling or move on to other targets.
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| Thanks To Anglo Deal,
Inflection Earns To Explore
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| Inflection Resources got a big boost in mid-2023, when industry major AngloGold Ashanti agreed to a joint venture deal on the company’s holdings along the Macquarie Arc.
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| The deal calls for AngloGold to spend an initial A$10 million over three years on the Phase 1 drilling program that will test all the targets Inflection outlined on its licenses. After this A$10 million AngloGold will have earned zero interest in any of the targets but will secure the right to select up to five projects to potentially progress to Phase 2.
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| AngloGold can then follow up in Phase 2 with A$7 million of exploration on each of the five projects to earn an initial 51% interest in each of those targets over three years. It can then earn a 65% interest by spending an additional A$20 million on each project.
This all adds up to a total of A$145 million of potential earn-in expenditures to earn 65% — and it includes a 10% management fee paid in cash to Inflection to operate the projects.
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| Click image to enlarge.
Major miner AngloGold Ashanti’s enthusiasm for Inflection’s land position was evidenced by an industry-leading deal worth up to A$145 million.
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| In addition to the expenditures outlined above and by outlining a minimum of two million ounces gold equivalent and conducting the massive undertaking of a prefeasibility study on any one of those projects, AngloGold can increase its stake in each project to 75%.
You read that right: Inflection has disrupted the business model and cracked the code for effective greenfields exploration. It is actually getting paid to explore its own massive Australian portfolio.
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| Duck Creek:
Quickly Elevated To Phase 2 Status
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| In May 2024, before the Phase 1 program has even been completed, AngloGold decided to accelerate the Duck Creek target and advance it to Phase 2 status unlocking potentially another A$7 million of expenditures.
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| The major was excited because wide spaced initial scout drilling on the Duck Creek target intercepted an extensive zone of distinctive porphyry-style alteration and geochemistry similar to that found in proximity to the other porphyry deposits in the belt including Cadia and Northparkes.
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| The target encompasses a very large, 4-kilometer by 5-kilometer feature and hit strong alteration and geochemistry interpreted to be outboard of an alkalic porphyry system. In other words, just what the AngloGold and Inflection geologists theorized and were hoping for.
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| Click image to enlarge.
This graphic models the typical alkalic porphyry deposit within the Macquarie Arc.
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| With this Phase 2 program already underway running in parallel with Phase 1, the partners are attempting to vector in on the sweet spot at Duck Creek.
To guide its efforts, they are using state-of-the-art space technology from a group called Fleet Space Technologies to complete an ambient noise tomography (“ANT”), or passive seismic survey, that began at Duck Creek and, based on the early results, is being expanded to cover the majority of the property position.
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| In Duck Creek, Inflection sees a potential intrusive complex of similar scale to Cadia and Northparkes, which are two of Australia’s most prolific and valuable mines.
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| And remember, Duck Creek is just the first of a what could be up to five projects within Inflection’s licenses that could each see an additional A$27 million of AngloGold exploration expenditures.
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| A Team Of All Stars
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| To help guide its effort along its Macquarie Arc land package, Inflection Resources brought on board some world-class exploration veterans to its team who have a strong track record of major discoveries.
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| Dr. Douglas Haynes, a founder and technical advisor to the company, has more than 50 years of experience in mineral exploration and led the discovery of several major deposits, including the world class Olympic Dam mine in Australia and the Kamoa copper deposits in the Democratic Republic of Congo for which Douglas won the PDAC’s International Discovery award.
Recently added advisor Dr. Neil Adshead has 30 years’ experience in minerals exploration and is a former portfolio manager and well-known investment strategist at Sprott.
Then there’s new director, Fraser MacCorquodale, a geologist with 35 years of exploration experience, including many years as Newcrest Mining’s global head of exploration which discovered and operated the massive Cadia deposits prior to being acquired by Newmont.
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| Combined with the founder, President and CEO Alistair Waddell’s near-30 years of diverse experience in exploration working with the major miners and junior explorers give Inflection Resources a deep bench of exploration talent to guide it as it looks to hit a home run in New South Wales.
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| The Drills Could Hit It Big At Any Time
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| Bottom line: Inflection is getting paid to explore its own properties for what could be the region’s next Tier-1 copper-gold discovery.
AngloGold is currently funding the A$10 million Phase 1 drilling that is testing the large portfolio of targets for copper-gold porphyries below post-mineral cover.
And has just started funding follow-up drilling on the exciting Duck Creek target, where the trail for the next major copper-gold discovery has grown increasingly hot.
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| Take the money AngloGold is investing in these projects as a rubber stamp in terms of diligence and a sign of their belief in the exploration potential of the Inflection properties to host one or more five-million-ounce-plus gold-equivalent deposits.
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| In short, Inflection and AngloGold could make a major copper-gold discovery at any time, making now the perfect time to perform your own due diligence on Inflection Resources.
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