Westar Resources (ASX: $WSR) announcement

Westar Resources Limited (ASX: $WSR) has announced the results from the Q4-2023 reverse circulation (RC) drilling program at the Olga Rocks Project in Western Australia. The drilling program successfully intersected prospective gold targets in four out of five holes, returning low-tenor lithium and gold assays. However, the company has elected not to extend or exercise its option to acquire 100% of the Project under the Tenement Option and Acquisition Agreement, citing the evaluation that the current exploration results did not meet their criteria for prioritizing additional investment.

Executive commentary

Westar's Executive Director Lindsay Franker stated, 'Westar has elected not to proceed with acquiring the Olga Rocks Project, having declined to extend or exercise its option to acquire the Project. Following the recent drill program and a thorough evaluation, we concluded that the Project's current exploration results did not meet our criteria for prioritizing additional investment. This decision is consistent with our ongoing commitment to maximize value opportunities for our shareholders by strategically allocating resources to projects with greater potential. We continue to actively review projects for acquisition, particularly those involving critical and strategic minerals.'

Summary of announcement

The recent RC drilling program at the Olga Rocks Project intersected prospective gold targets in four out of five holes, returning low-tenor lithium and gold assays. However, the evaluation concluded that the current exploration results did not meet Westar's criteria for prioritizing additional investment, leading to the decision not to exercise the option to acquire the Project. Westar is now reviewing projects for potential acquisitions, primarily focusing on critical and strategic minerals. The Olga Rocks Project, located in the gold-rich Southern Cross greenstone belt, did not yield significant lithium or gold mineralization that could become economic at scale. Westar believes the gold and lithium targets have been adequately tested and has decided not to pursue further exploration on the Project. The company continues to evaluate new projects that can add significant value to shareholders, with a focus on critical and strategic minerals.