Caspin Secures 80% Stake in Weethalle Gold Project with 2,000m IP Anomaly
Caspin Resources has secured an option to earn an 80% interest in the Weethalle Gold Project, a compelling large-scale gold target in New South Wales, with drilling planned to start in late October 2025.
- Option to earn 80% interest in Weethalle Gold Project
- 310km² land package near Weethalle with historical high-grade gold
- 2,000m long, undrilled IP geophysical anomaly coincident with geochemical signatures
- Drilling scheduled for late October 2025 with initial 1,200m RC program
- Staged earn-in payments and exploration commitments with free carried interest to decision to mine
Strategic Acquisition of a Drill-Ready Gold Target
Caspin Resources Limited (ASX, CPN) has taken a significant step to diversify its mineral portfolio by securing an option to earn an 80% interest in the Weethalle Gold Project, located in New South Wales. This project is notable for its large-scale, intrusive related gold system potential, situated just 30 kilometres north of Caspin’s existing Bygoo Tin Project. The option agreement, executed with Weethalle Gold Pty Ltd, provides Caspin with a low-cost entry into a highly prospective gold exploration opportunity.
Compelling Geological and Historical Context
The Weethalle Gold Project covers a substantial 310 square kilometre land package near the township of Weethalle. It hosts historical gold workings, particularly at the Euratha Mine, where past mining yielded exceptionally high-grade gold, with assays reaching up to 5 ounces per tonne. Recent surface rock chip samples have confirmed grades as high as 36.3 grams per tonne. The project’s geological setting is analogous to other major intrusive related gold systems globally, such as the Fort Knox and Kidston deposits, and shares similarities with De Grey Mining’s 10 million ounce Hemi discovery.
Modern Exploration Highlights and Upcoming Drilling
Recent geophysical surveys have identified a robust Induced Polarisation (IP) anomaly extending over 2,000 metres of strike, with a strong core anomaly less than 200 metres below surface that remains undrilled. This anomaly aligns closely with geochemical soil signatures, including arsenic, tungsten, and lead, which are pathfinder elements typical of intrusive related gold systems. Caspin plans to commence an initial 1,200-metre reverse circulation drilling program in late October 2025, subject to rig availability, aiming to test these coincident anomalies and unlock the project's potential.
Structured Option Agreement and Exploration Commitments
The option agreement involves an upfront payment of A$50,000 and the issue of one million Caspin shares, with further staged payments and exploration expenditure commitments totaling several million dollars over the next four years. Upon meeting these milestones, Caspin can increase its interest to 80%, while Weethalle Gold Pty Ltd retains a 20% free carried interest through to a decision to mine. This structure aligns incentives and mitigates early-stage exploration risk for Caspin.
Balancing Gold Exposure with Existing Tin Projects
While Caspin’s primary focus remains on advancing its high-grade Bygoo Tin Project, the Weethalle Gold Project offers immediate exposure to the buoyant gold market. Managing Director Greg Miles emphasised the strategic fit and excitement around Weethalle, highlighting the potential for a large intrusive related gold deposit in a historically underexplored region. The company will continue parallel work programs at Bygoo, including resource expansion drilling at the Kelpie Tin Deposit, ensuring a balanced approach to its commodity portfolio.
Bottom Line?
With drilling imminent, Caspin’s Weethalle option could redefine its growth trajectory amid rising gold prices.
Questions in the middle?
- Will initial drilling confirm the scale and grade suggested by geophysical and geochemical data?
- How will Caspin balance capital allocation between the new gold project and its existing tin assets?
- What are the potential timelines and hurdles for advancing Weethalle beyond exploration to development?
