Kairos Minerals (ASX:KAI) has signed a mineral rights agreement with PLS (ASX:PLS) under three exploration tenements and one application for all mineral rights, except lithium and tantalum, at the Mt York Project in Western Australia.
Under the agreement, Kairos will pay a royalty to PLS of 2% of gross revenue on any minerals recovered and sold from the licences.
PLS has also granted Kairos early access to the priority area to start a 50-hole for 10,000m drilling program over the Main Hill extension – a 1,500m-long continuation of the Mt York mineralised banded iron formation.
The program is aimed at delivering and adding gold resources and programs of works.
Managing Director Peter Turner says this is a landmark moment in the company’s history as it takes ownership of the mineral rights.
“It also provides blue-sky exploration upside to 367km2 of fertile ground that has not been systematically explored for gold, despite having lookalike geology to Mt York,” Turner says.
“We are confident of success to make Mt York one of the largest, undeveloped, free-milling gold projects in the Pilbara and importantly, Western Australia.”
The company expects the second $10 million payment to PLS by the end of 2025, subject to the grant of PLS’ mining lease application and other agreed tenure, as previously signed tenement sale agreement.
Kairos Minerals is an Australian gold explorer focused on the 1.4 million ounce Mt York Project.
Mt York contains a mineral resource of 20.25 million tonnes @ 1.06 grams per tonne gold for 690,000 ounces in the indicated category and 22.83 million tonnes @ 0.95g/t Au for 697,000 ounces in the inferred category.
Write to Aaliyah Rogan at Mining.com.au
Images: Kairos Mineras
