Accelerate Resources (ASX:AX8) has executed a binding earn-in agreement to earn up to 80% interest in the Balagundi Gold Project in the Eastern Goldfields region of Western Australia.
As a part of the terms of the agreement, Accelerate will be required to spend $3 million on project related expenses over a two year period, with an initial minimum commitment of $500,000 in the first year.
The company will pay $20,000 to the vendor on each yearly anniversary of the agreement date within the earn-in period, as well as making milestone payments to be determined by the publication of a JORC-compliant resource estimate of the project.
Milestone payments begin at $50,000 for a resource between 10,000 and 50,000 ounces of gold, up to $250,000 for a resource greater than 100,000 ounces.
Upon completion of the agreement, the vendor will retain $45,000 cash and 10 million shares in Accelerate, also retaining a 20% free-carried interest until Accelerate achieves a resource of 500,000 ounces of gold.
CEO Luke Meter says this agreement will strengthen the company’s holdings in the Eastern Goldfields region.
“Balagundi is a discovery-ready project with many historic high-grade results and untested high impact targets,” Meter says.
“The project hosts numerous shallow workings and shafts along high-grade quartz veins, a prolific and rich nugget field and vast untested zones with little to no modern exploration for 25 years.
“Combined with Kanowna East, we are forging a highly prospective gold exploration hub within 20 km of Kalgoorlie, capable of providing low-capex potential to fast-track any future discoveries.”
Accelerate has planned a staged exploration campaign at Balagundi, beginning with detailed structural mapping, geochemical surveys, and geophysical programs to uncover hidden mineralised trends and refine priority corridors to be targeted.
The company intends to follow this up with drilling in late 2025 and early 2026.
Located in the Norseman-Wiluna greenstone belt of the Yilgarn Craton, the Balagundi Project spans 27km2 tenure prospective for gold mineralisation.
The project holds a historical production of 4,000 ounces of gold from the Queen of Balagundi and Mt Bellew mines.
Write to Maddison Elliott at Mining.com.au
Images: Accelerate Resources
