Dreadnought Resources (ASX:DRE) has entered into an agreement with an unrelated vendor to acquire three tenements, covering 300km2, within the Mangaroon Gold Project in Western Australia.
The ground strategically lies within the centre of the project and is “highly prospective”, covering major mineralised structures with defined gold and base metal anomalies.
Under the agreement, Dreadnought, which has a market capitalisation of $75.53 million, will pay a non-refundable deposit of $10,000 to privately held Redscope Enterprises.
The company will also pay $40,000 and issue 16 million shares upon completion of the acquisition.
Once completed, Dreadnought will conduct target generation and definition work with drill-ready targets expected by the end of this year.
Completion of the acquisition of two granted tenements is conditional upon the vendor providing copies of all third party agreements and mining information, as well as the vendor and purchaser signing deeds of assignment and assumption in relation to the third party agreements.
Managing Director Dean Tuck says the acquisition closes a “significant” gap in the company’s tenement position at Mangaroon.
“We already have a dominant position in the region, and we see these tenements as important to our short- and long-term strategy for Mangaroon gold and base metals.
“We will be including existing and future targets on the tenements into our existing work programs in the region.”
Dreadnought has also estimated an initial exploration target at the Star of Mangaroon deposit, via using historical and recent drilling results.
The exploration target comprises between 160,000 and 270,000 tonnes at 7-10 grams per tonne gold containing 36,000-86,000 ounces of gold.
Tuck says the initial exploration target provides the company with a starting point from which resources and reserves can result.
“Starting with the Star of Mangaroon, we have prepared an open-pit conceptual model which concludes that high-grade material can be hauled and processed through already installed facilities,” Tuck says.
“Star of Mangaroon provides a template for advancing our other prospects including Two Peaks, Pritchard Well and the Lead Gold Mines. This strategy allows us to focus on exploration and growth while ‘outsourcing’ our cash-flow generating activities.”
The company plans to conduct resource, geotechnical, and metallurgical drilling at the Star of Mangaroon deposit, which remains open at depth.
Dreadnought also seeks to secure mining approvals and complete turn-key findings, development, and haulage arrangements, as well as continuing ongoing good faith discussions with Black Cat Syndicate (ASX:BC8) regarding processing material at the Paulsens Operation, which lies 300km from Star of Mangaroon.
Write to Aaliyah Rogan at Mining.com.au
Images: Dreadnought Resources
