Western Mines Group (ASX: WMG) has entered into a binding agreement to acquire key ground adjacent to its Jasper Hill project area in Western Australia.
The company says that the acquisition of 100% of neighbouring tenement E39/2073 consolidates 3km of known mineralised trend and its position on the under-explored Merolia Greenstone Belt.
Consideration for the deal includes $50,000 cash, 350,000 fully paid ordinary shares, 700,000 options over ordinary shares, and a 1% net smelter royalty in respect of any minerals extracted and recovered from the tenement.
“We now have a great position on this under explored greenstone belt, including a 3km long known mineralised trend that has only been lightly drilled”
WMG reports that the tenement contains a number of robust gold intercepts from historical shallow drilling during the 1980s, with standout results including:
- Hole AJ10: 14m @ 1.58g/t Au from 14m including 2m @ 8.1g/t Au from 16m
- Hole PDH02: 13m @ 1.44g/t Au from 15m including 5m @ 3.11g/t Au from 15m
- Hole PDH03: 18m @ 1.28g/t Au from 14m including 4m @ 3.35g/t Au from 14m
Meanwhile, a review of historical soil sampling has shown results of up to 970ppb Au within the company’s tenement areas, and extensive +50ppb Au anomalies over a 3km trend.
WMG notes that very limited exploration or follow up work has been undertaken, with the ground held in private ownership over last 30 years, making it significantly under explored.
Speaking on the acquisition, Western Mines Group Managing Director Caedmon Marriott said: “This is a great acquisition for WMG of an exciting piece of ground that consolidates our Jasper Hill Gold Project. We now have a great position on this under explored greenstone belt, including a 3km long known mineralised trend that has only been lightly drilled, with no real follow up work since the 1980-90’s. We look forward to getting out on the ground and ramping up work at what is now our primary gold project.”
The Jasper Hill Gold Project lies on the Merolia Greenstone Belt, approximately 80km southeast of Laverton, and 50km from the Company’s Rock of Ages Project. This north-northwest trending belt can be traced over 110km in a south-southeast direction from the Burtville Mining Centre.
Following the recent grant of tenement E39/2079 and upon completion of the current acquisition of tenement E39/2073, Jasper Hill is now WMG’s primary gold project within a diversified portfolio of gold, battery, and base metal commodities.
The company notes that it is in the process of collating historic data for the entire project area, with possible future exploration including geological mapping, soil and rock chip sampling, and ground magnetic surveys, followed by AC and RC drilling.
Images: Western Mines Group Ltd