Riedel Resources (ASX:RIE) has secured an additional 39% interest in privately held Flagstaff Minerals (USA), which owns the Kingman Gold Project in Arizona, bringing its total interest to 90% after renegotiating existing agreements.
As a result, the stage-two expenditure condition at the Kingman Project was reduced to reflect the expenditure already incurred.
The Kingman Project comprises 195 “highly prospective” unpatented contiguous lode claims.
Under the first stage, Riedel issued 60 million shares to Flagstaff Minerals and spent $5 million on exploration at Kingman.
Meanwhile, under the second stage, Riedel issued an additional 100 million shares to Flagstaff Minerals and spent a further $5 million on the project.
Riedel Resources has also agreed to pay Flagstaff Minerals $20,000 upon executing the amended agreements.
Prior drilling by Riedel confirmed a “significant blanket of shallow high-grade” gold and silver mineralisation at the Tintic mine area located within the Kingman Project.
Chairman Grant Mooney says in addition to the high-grade gold profile of Tintic, there is a very “significant silver endowment”.
“We look forward to continuing our investigations to evaluate the technical and economic feasibility of the Tintic Project, in addition to identifying the most suitable mineral processing options,” Mooney says.
Tintic hosts an existing resource of 500,000 tonnes @ 4 grams per tonne (g/t) gold and 43.4g/t silver for 64,000 ounces of gold and 689,000 ounces of silver above 40m depth.
The Kingman Project was mined for gold and silver from the 1880s until the early 1940s which coincided with the outbreak of World War Two.
The region is host to large epithermal gold deposits including Round Mountain (+15Moz), Castle Mountain (5.6Moz), Mesquite (+5Moz) and the historical Oatman district (+2Moz).
Riedel Resources is a mineral explorer focused on advancing its gold project in Arizona, US.
Write to Aaliyah Rogan at Mining.com.au
Images: Riedel Resources
