GoldArc Resources (ASX:GA8) has completed its acquisition of seven prospecting licences at Niagara, extending its ground along the Leonora South corridor in Western Australia’s Kookynie Goldfields.
The company now holds a 100% interest in the Niagara West and Niagara North prospects, bought from Regener8 Resources (ASX:R8R). Completion occurred on 19 October, three days after shareholders approved the deal at a general meeting.
Under the terms, GoldArc issued 21,428,571 shares to Regener8 at a deemed price of $0.07, valuing the upfront consideration at $1.5 million. The shares carry a voluntary six-month escrow.
A further $1 million is contingent on resource delivery, split into two $500,000 tranches payable in cash or shares. The first tranche requires an inferred or higher mineral resource estimate of at least 100,000 ounces of gold. The second requires 250,000 ounces, both at a grade above 1.5g/t, within five years.
The ground adjoins the Leonora South Gold Project, giving GoldArc continuous tenure running north from the Orion and Sapphire deposits.
Those deposits hold inferred mineral resources of 26,409 and 21,605 ounces of gold respectively, with the Eclipse, Whistler, and Woodpecker prospects also sitting within the acquired ground.
The tenements sit on a parallel trend and share the same orogenic, vein-controlled gold system.
Niagara West contains historical workings and six prospects: May, Derwent, Jarrahdale, Spinaway, Kathleen, and Green Bullet.
Regener8 drilled 33 reverse circulation (RC) holes for 2,530m there in 2023, returning 5m @ 3.18 grams per tonne gold (Au) from 29m in NGRC017, and 2m @ 7.77g/t Au from 45m at Derwent, which remains open down dip.
Earlier drilling between 1987 and 2014 returned 2m @ 70.52g/t Au from 7m and 2m @ 11.32g/t Au from 22m. All intercepts are downhole widths, with true widths not determined. GoldArc has not independently validated Regener8’s results.
Niagara North lies about 3km north, where a 2022 auger soil survey defined three anomalies. Each anomaly is about 250m long, with a peak value of 0.94 parts per million gold. Earlier drilling tested only the regolith, leaving fresh bedrock untested.
Managing Director Paul Stephen says the acquisition extends GoldArc’s ground along the corridor it has drilled this year.
“Completing Niagara gives us continuous ground running north from Orion, Sapphire, and Eclipse, explored by the same team that has been drilling the Leonora South corridor all year,” Stephen states.
He says Niagara West offers ‘high-grade’ results to follow up. Meanwhile, Niagara North offers untested bedrock beneath clear soil anomalies, describing the deal as “structured around delivery”.
GoldArc plans geological mapping, rock chip, and soil sampling across both areas, funded from existing cash. It will fold historical and Regener8 data into its Leonora South geological model and drill the highest-ranked targets in its next program.
The company will also release results from a 6,600m RC discovery program at Leonora North as they arrive, subject to access, approvals, and contractor availability.
GoldArc separately acquired tenement application P40/1622, along strike from the May prospect, for $3,000 cash in August.
GoldArc Resources is an Australian gold explorer and developer advancing a portfolio of projects in the Eastern Goldfields.
Write to JC Villarba at Mining.com.au
Images: GoldArc Resources
