Errawarra Resources Secures 70% Stake in High-Grade Elizabeth Hill Silver Project
Errawarra Resources has acquired a controlling interest in the historically prolific Elizabeth Hill Silver Project in Western Australia's Pilbara region, positioning itself for significant resource growth and imminent drilling activities. The company also advances its capital raise and exploration efforts across multiple projects.
- Acquisition of 70% interest in Elizabeth Hill Silver Project and surrounding tenements
- Historical production of 1.2 million ounces of silver at exceptional grades
- Upcoming drill testing targeting regional and near-mine silver deposits
- Falcon Metals initiates exploration on Errabiddy Falcon JV gold project
- Strong cash position with $3 million capital raise underway, tranche 2 pending shareholder approval
Strategic Acquisition in a Tier 1 Mining Jurisdiction
Errawarra Resources Ltd (ASX: ERW) has taken a decisive step forward by acquiring a 70% interest in the Elizabeth Hill Silver Project, a historically high-grade silver asset located in the Pilbara region of Western Australia. This acquisition, which also includes 70% of the silver rights to the adjacent Pinderi Hills Project and three surrounding tenements, consolidates a substantial 180 square kilometre land package in one of the world's most respected mining jurisdictions.
The Elizabeth Hill Project stands out with a proven production history, having yielded approximately 1.2 million ounces of silver from just 16,830 tonnes of ore at an extraordinary head grade of 2,194 grams per tonne (70 ounces per ton). Previous mining operations ceased in 2000 due to low silver prices, but the project's gravity separation recovery method and proximity to existing processing infrastructure at Radio Hill offer promising low-cost operational opportunities.
Exploration Potential and Upcoming Drilling
Recent limited drilling by Alien Metals Limited has confirmed the presence of exceptionally high-grade silver mineralisation, with intercepts such as 11.7 metres at 5,371 g/t silver and 24 metres at 1,228 g/t silver. Errawarra's strategy focuses on three exploration avenues: reassessing historical data to develop a JORC 2012 compliant resource, near-mine targeting for extensions of known lodes, and regional exploration for new Elizabeth Hill-style deposits within the extensive tenement package.
Field programs involving soil sampling and geological mapping have commenced, aiming to identify look-alike silver targets for drill testing scheduled to begin in the current quarter. The company has engaged ERM Consultants to support technical and project management activities, underscoring its commitment to advancing the project efficiently.
Broader Portfolio and Joint Ventures
Alongside Elizabeth Hill, Errawarra continues to progress other projects. Falcon Metals has initiated reconnaissance exploration on the Errabiddy Falcon JV gold project, focusing on the Olsen Well gold anomaly, a significant soil anomaly with peak values of 234 ppb gold. Further exploration is planned to follow up on this and other targets such as the copper-gold anomaly at Parrot Bore.
The company’s lithium interests at the Andover West and Pinderi Hills projects remain promising, with anomalous lithium soil trends and pegmatite swarms identified. However, exploration efforts are currently prioritised towards the Elizabeth Hill acquisition and its immediate development potential.
Financial Position and Capital Raising
Errawarra maintains a solid financial footing, reporting $618,800 in cash and securities as of 31 March 2025. The company announced a $3 million capital raise in March 2025, with $631,264 received in tranche 1 and tranche 2 pending shareholder approval at a General Meeting scheduled for 19 May 2025. This capital injection is critical to funding the accelerated exploration and development activities at Elizabeth Hill and other projects.
Management’s focus on shareholder value is evident in the structured joint venture agreements with Alien Metals and GreenTech Metals Limited, which include free-carry provisions until a decision to mine is made, mitigating near-term financial risk.
Looking Ahead
With a high-grade silver asset now underpinning its portfolio, Errawarra Resources is poised for a transformative phase. The upcoming drill programs and resource assessments at Elizabeth Hill will be pivotal in defining the project's scale and economic viability. Meanwhile, ongoing exploration at Errabiddy and lithium prospects adds optionality to the company’s growth trajectory.
Bottom Line?
Errawarra’s acquisition of Elizabeth Hill marks a pivotal moment, setting the stage for a potential silver resurgence in the Pilbara and a re-rating of the company’s exploration assets.
Questions in the middle?
- Will the maiden JORC resource at Elizabeth Hill confirm the historical high grades and support a viable mining operation?
- How will the market respond to the tranche 2 capital raise and what impact will it have on share dilution?
- What are the timelines and expected outcomes for Falcon Metals’ exploration activities on the Errabiddy Falcon JV?
