Auric Mining (ASX:AWJ) has picked up a further eight tenements covering 113km2 in Western Australia’s gold-rich Widgiemooltha-Higginsville region.
The group agreed terms to purchase the tenements from Loded Dog Prospecting, further expanding Auric’s presence in an area surrounded by active gold mines.
Auric will make an upfront cash payment of $475,000, plus milestone payments tied to future resources defined as well as issue a net smelter royalty of up to 1.5% on production.
Technical Director John Utley said the acquisition aligns with Auric’s strategy of targeting geologically promising sites with proximity to proven mineralisation.
“We’ve been building our landholding in the area since the company listed four years ago. The new tenements fit our strategy and selection criteria perfectly,” Utley said.
Managing Director Mark English notes the potential of the Amorphous and Foote’s Find prospects, which include historic drill results of 2m @ 10.27 grams per tonne gold from 28m at Amorphous, and 3m at 4.99g/t gold from 41m at Foote’s Find.
The Amorphous Prospect will be the initial focus of exploration with the potential to expand on known mineralisation extending over about 1km of strike.
Amorphous and, to a lesser extent, Foote’s Find have been explored in the past by Resolute Mining (ASX:RSG), Australian Gold Resources and most recently by Argonaut Resources, now Orpheus Uranium (ASX:ORP).
Nearby gold operations include the Trident mine, which was one of the largest underground gold mines in the area, producing just over 1 million ounces from 7.4 million tonnes of ore at an average grade of 4.4g/t between 2008 and 2016.
Write to Dan Petrie at Mining.com.au
Images: Auric Mining
