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Groote Resources Limited is a Perth-based exploration company which continues to actively search for new projects, both within Australia and offshore.
Currently the company has two main projects.
Groote Eylandt Manganese project
Groote Resources holds exploration rights for six tenements covering 1,723 km2 of shallow marine terrain and two islands near Groote Eylandt in the Northern Territory of Australia. These tenements are located immediately adjacent to and contain the interpreted extensions of the world-class manganese deposits at Groote Eylandt currently being mined by Groote Eylandt Mining Company Pty Limited (“GEMCO”),
The company has set an initial exploration target of 50MT of high grade DSO.
Manganese is an essential alloy used in steel production as a strengthening component and has no known substitute. Consumption is around 50MTPA with China accounting for nearly 50% of global demand. High-grade DSO manganese such as the ore found at Groote Eylandt is much more profitable value than iron, coal, gold, and base metals.
Mt Alexander Uranium Project
The EL comprises 8,877 hectares of prospective ground in the Ashburton Mineral Field of Western Australia, approximately 10km south of Nanutarra (refer to location map below). The area was previously subject to exploration for uranium by Agip Nucleare and EssoExploration in the mid 1970s and for base metals and tantalum by various workers in the1990s. An assessment of this work has identified a number of conceptual uranium and basemetal targets and an exploration program is currently being produced by the team at Groote resources.
Uranium prices are strong. Demand for uranium substantially exceeds supply and is predicted to remain so for the next decade, placing upward pressure on the price of uranium. Further, as world demand for electricity increases and global warming continues to be a critical issue, re-evaluation of uranium as a source of base load electricity generation becomes compelling.
The company continues to look for other opportunities from drill-ready exploration projects through to advanced projects with existing resources and upside potential. Although the preference is for the major metals or bulks other commodities are being considered. There is no geographical constraint other than areas of unacceptable political risk. All deal structures will be considered, from joint venture farm-in through to direct project equity or corporate acquisition.