Aureka (ASX:AKA) has secured purchase agreements to acquire 97 hectares of land surrounding the Irvine Project in the Stawell Gold Corridor in Victoria.
The agreements do not significantly impact Aureka’s cash balance of $4.9 million, as of 31 December 2024. The contracts allow for an extended settlement term, of up to 90-days, by Aureka or its nominees.
Aureka engaged JLL Value and Risk Advisory to formally assess the agreed transactions, which are priced at $2.2 million and within the range of the market and the advertised asking prices.
The agreements show the company’s confidence in the Irvine Project as among “one of Victoria’s largest undeveloped gold resource projects.”
The Stawell district is a historic goldfield dating as far back as the 1850s. It is home to the Stawell Gold Mine which has produced over 5 million ounces. Aureka’s Irvine Project sits just 20km south of the Stawell Mine.
The region forms part of the famed ‘Golden Triangle’ in Victoria that also comprises the Ballarat and Bendigo goldfields, which collectively have produced over 60 million ounces of the precious metal.
In conjunction, the additional ground will result in a permanent presence onsite, flexibility in drilling programs, and provides for future infrastructure options.
Managing Director James Gurry says acquiring these properties is considered an important step in delivering a path to production for the project.
“We are building off a strong base that already contains 304,000 ounces of gold, plus an exploration target of 280,000 to 420,000 ounces,” Gurry says.
Aureka’s share price increased 16.12% to $0.180 as of 12pm AEDT today (24 March).
The current diamond drilling program at Irvine is progressing, with early samples being prepared for assaying. To date, the progress has provided the company with confidence to proceed with the land purchase agreements and long-term project planning.
Aureka is a gold-focused explorer with assets located across Victoria. The company’s project portfolio comprises the Irvine, Tandarra, and St Arnaud projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Aureka
