Duketon Mining (ASX:DKM) has entered into an option agreement to acquire the Killarney Gold Project in Western Australia.
The Killarney Project includes two granted tenements covering 50 hectares with historical gold production. The project sits within the Mount Magnet region, which is known for its gold endowment and production.
Under the agreement, Duketon will pay a non-refundable $50,000 cash payment for an exclusive 12-month option period.
During that time, the company intends to undertake exploration work to understand the mineralisation and potential of the Killarney Project.
Work will include surface sampling, geological mapping, and drilling to better define the extent of the mineralisation. Results from rock chip sampling at the Killarney Project indicate the potential of gold mineralisation, and initial drilling will focus on confirming the depth and continuity of these zones.
Historical rock chip sampling returned grades of up to 485 grams per tonne. Meanwhile, prior small-scale mining on a sub-parallel structure produced about 20kg of gold from roughly four tonnes of material.
Duketon, which has a market capitalisation of $9.79 million, has the right to exercise the option and acquire the project via issuing 2 million shares to the vendor.
Managing Director Stuart Fogarty says the acquisition represents an opportunity to enhance its exploration portfolio in a prospective region of Western Australia.
“The rock chip sampling results, with grades up to 485 grams per tonne gold, the precious small-scale, high-grade mining and the covered nature of the area adds to our enthusiasm to commence systematic exploration, in particular drilling,” Fogarty says.
Recent rock chip sampling undertaken by Duketon returned grades ranging between 34.1g/t and 51.5g/t gold.
Duketon Mining is a diversified mineral explorer focused on discovering and developing its assets in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Duketon Mining
