Bubalus Resources (ASX:BUS) has granted the option to obtain a portfolio of exploration licences in the Stawell Zone of the Victorian goldfields region.
The licences cover 1,063km2 and sit in close proximity to the operating Stawell and Kingston gold mines.
Under the binding heads of agreement with privately held Providence Gold and Minerals, Bubalus will pay $50,000 cash and issue 700,000 shares at $0.18 per share, subject to obtaining shareholder approval.
Subject to satisfying certain conditions, Bubalus may exercise the option during a 48-month period after the execution date by paying a total of $1.175 million.
During the option period, Bubalus may begin exploration work on the tenements. The company has agreed to complete a minimum of 1,200m of drilling and a reconnaissance sampling program.
Subject to Bubalus paying all of the option payments to Providence, the company will also issue 850,000 shares and 1.7 million options, with 850,000 options exercisable at $0.315 and the remaining options exercisable at $0.45 with a three year expiry.
The primary licence, Avon Plains, is a historical mine that has seen limited work of late, with aircore drilling appearing ineffective in penetrating the mineralised reef at the project. This is due to the hardness of the material and the groundwater issues, which is consistent with historical information.
Bubalus intends to conduct a drilling program at Avon Plains, aimed at delineating the gold-bearing reef orientation, grade and extent. Despite local knowledge of the remaining historic mine shaft, the mine and associated gold occurrences are not noted in Victorian online databases. Importantly, Bubalus notes that the vendor has a land access agreement in place with the landholder.
The company will also conduct a broad-spaced geochemical sampling program across the remainder of the licence areas targeting new discoveries and recorded gold occurrences.
A more extensive soil sampling program will be carried out across the northeast trending zones visible on the satellite imagery, as well as further sampling across the broader licence area.
Bubalus is an active mineral explorer focused on gold and critical minerals in Victoria, the Northern Territory, and Western Australia.
Victoria is a world-renowned gold province with a variety of deposit styles and pre-competitive geoscientific data and knowledge to improve targeting and reduce mineral exploration risk. The state has produced more than 2,500 tonnes (80 million ounces) of the precious metal.
As previously reported, the Geological Survey of Victoria regularly scans exploration and mining activity across the state and compiles a list of recently issued media releases by companies. There are only about 20 ASX-listed gold companies active in the state.
It has 13 goldfields each of which has produced more than 1 million ounces, however there are two major fields Bendigo (22 million ounces) and Ballarat (12 million ounces).
Although Victoria receives less attention than other gold mining states such as Western Australia, production and exploration expenditure remain buoyant. Production is in the order of about 650,000 ounces of gold per annum, coming mainly from four deposits.
Write to Aaliyah Rogan at Mining.com.au
Images: Bubalus Resources
