AFREdited by Luke Forrestal While there’s not a lot of...

AFR
Edited by Luke Forrestal

While there’s not a lot of exploration going on elsewhere in the country, Western Australia’s Fraser Range belt, where Sirius Resources made its landmark Nova and Bollinger nickel-copper discoveries last year, has become a hive of activity.

Those in the midst of planning drilling programs in Australia’s newest exploration hotspot include Matsa Resources, Sheffield Resources, Windward Resources, Enterprise Metals, Buxton Resources, Boadicea Resources, Classic Minerals and Orion Gold.

Of these hopefuls, Orion has to be classed as a standout because of its relationship with legendary prospector and major Sirius shareholder, Mark Creasy.

Last week the company struck a deal with Creasy to acquire a 70 per cent interest in a 2628-square-kilometre tenement package in the northern Fraser Range, adding to the tenements it picked up through the acquisition of private company Kamax Resources earlier this year. It gives Orion a commanding position in that part of the belt.

The deal was structured much like the one Creasy did with Sirius in late 2010, except that he will end up with a smaller stake in Orion.

Once Orion completes a capital raising to fund exploration on its Fraser Range tenements, Creasy will hold about 11 per cent of the company; he currently owns 20.3 per cent of Sirius.

Perth-based Argonaut Capital is helping Orion raise at least $5 million through a share placement at 12¢ each, with reports suggesting the money will be in the tin by early next week.

The company has identified three main targets at the Peninsula project within its Fraser Range tenements, and believes they have the potential to host mineralisation similar to that at Nova and Bollinger.

Orion chairman Denis Waddell is an unabashed admirer of Creasy and followed him into Sirius, much to his financial benefit.