Leeuwin Metals (ASX:LM1) has entered a binding agreement to acquire three tenements covering approximately 105km² in Western Australia’s gold-producing greenstone belts.
The company will acquire a 100% interest in one granted exploration licence at Lake Johnston and two exploration licence applications at Marvel Loch and Forrestania from Mining Equities.
The Marvel Loch application tenure neighbours the Marvel Loch gold mine, which sits in a district that has produced gold for more than 130 years.
Meanwhile, the Lake Johnston licence sits within a mafic-ultramafic belt prospective for gold, nickel, and lithium.
Under the agreement, Leeuwin will pay 350,000 shares valued at $89,250 plus a 1% royalty on gross revenue from mineral sales. The transaction requires no cash outlay and will be completed within Leeuwin’s existing listing rule 7.1 capacity.
Executive Chairman Christopher Piggott says the acquisition complements the company’s gold exploration footprint across three proven gold-producing greenstone belts in the Yilgarn region.
“The Marvel Loch ground in particular sits … in a district that has produced gold for more than 130 years, and the addition of granted and application tenure at Forrestania and Lake Johnston gives us a pipeline of quality targets to advance in parallel with our cornerstone Marda Gold Project,” Piggott says.
The Forrestania tenements host geology neighbouring the Marvel Loch gold mine, a region hosting the Marvel Loch, Nevoria, Yilgarn Star, Transvaal, and Cornishman gold deposits.
Gold mineralisation in the district is structurally controlled and associated with banded iron formation and mafic host rocks along the regional shear corridor.
The acquisition complements Leeuwin’s cornerstone Marda Gold Project, which hosts a mineral resource estimate of 11.4 million tonnes (Mt) @ 1.03 grams per tonne gold (Au) for 378,600 ounces. The resource comprises 3.1Mt @ 1.04g/t Au for 104,000 ounces indicated and 8.3Mt @ 1.03g/t Au for 274,600 ounces inferred.
Leeuwin intends to compile and validate historical datasets immediately following completion, with first-pass exploration planned across the new ground and existing tenure.
Leeuwin Metals is an Australian mineral explorer focused on discovering mineral resources across Canada and WA.
Write to Paula Fabe at Mining.com.au
Images: Leeuwin Metals
