Redcastle Resources (ASX:RC1) has entered into an agreement to purchase a prospecting licence in the “highly prospective” Redcastle-Queen Alexander gold corridor in Western Australia.
Under the agreement, Redcastle will pay $30,000 cash to the vendors, as well as grant a 2% gross revenue royalty on all minerals produced and sold from the tenement.
The company will also execute a detection agreement for the initial term of the permit, granting the right to prospect for gold in the permit in favour of the vendors.
The prospecting licence is a pending prospecting licence application and the agreed purchase is subject to the tenement being granted.
Redcastle says the licence, which adjoins the current Redcastle Project tenements, will provide an enlarged footprint in the Redcastle-Queen Alexander corridor.
“Favourable exploration results to date on current Redcastle tenements support historical sites potentially hosting significant untapped gold mineralisation and underpin Redcastle’s longer term strategy of acquiring additional interests,” the company says.
Following Thursday’s announcement, Redcastle’s share price had spiked 37.49% to $0.011 as of 3.45pm AEDT.
Recastle intends to extend its surface auger sampling coverage across the permit, as well as complete a detailed surface geological mapping program.
The company will integrate all of the new and historical results into the Redcastle-Queen Alexander corridor geological models.
Once completed, Redcastle will plan an initial phase of drilling to confirm lateral continuity of key lithological units and structural controls to uncover target areas.
The Redcastle Project is located 59km east-southeast of the Gwalia Gold Mine in the Leonora-Laverton area, which is an area delineated by multi-million-ounce gold deposits hosted within the greenstone belt of the eastern Yilgarn area.
Redcastle Resources is a mineral explorer focused on gold discoveries in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Redcastle Resources
