Australian gold sector progresses $20m worth of M&A

A 3D illustration of rising gold prices on the stock market.

The gold mining sector has announced a series of mergers and acquisitions (M&A) involving Genesis Minerals, Kingston Resources and Firefly Resources.

Genesis is set to acquire the Kookynie gold project in Western Australia from A&C Mining Investment and owner Yijun Zhu for a consideration of $13.5 million.

The acquisition includes an accommodation camp, a bore field, haul roads and access roads contained in the Kookynie project.

It includes a JORC 2012 compliant indicated and inferred mineral resource totalling 8.53 million tonnes at 1.5 grams per tonne for 414,000 ounces of gold across a 248 square kilometres tenement.

Over 650,000 ounces of gold has also been produced from the Kookynie district since the 1890s from both underground and open pits.

“This is an acquisition which ticks every box for us from a strategic, corporate, geological and tactical perspective,” Genesis managing director Michael Fowler said.

“It provides the springboard for a significant reboot of the Genesis story and puts us on a firm growth trajectory towards the establishment of a significant new standalone gold mining and operation at Ulysses.”

The Kookynie project is also in proximity with Genesis’ Ulysses gold project, which feasibility study is targeted for completion early next year.

Gold development company Kingston Resources is also set to acquire an interest held by its joint venture partner, Pan Pacific Copper in the 3.2 million ounces Misima project in Papua New Guinea.

Kingston will pay a consideration of $2 million for acquiring Pan Pacific’s 19 per cent stake.

Kingston managing director Andrew Corbett said it had been a pleasure dealing with the Pan Pacific team since acquiring its initial interest in the project in late November.

“We are now looking forward to taking the next step at Misima, with a transaction that delivers 100 per cent ownership of this outstanding gold development opportunity for the company as we move ahead with a pre-feasibility study that is already well underway and on track for delivery in the (fourth quarter) of this year,” Corbett said.

In the Murchison region of Western Australia, Firefly Resources has also inked an agreement to acquire the Yalgoo project from private company Aurum Minerals.

The $2.91 million acquisition includes the advanced Melville deposit, satellite gold prospects and a 600 square kilometres contiguous exploration package.

This provides coverage of the Yalgoo goldfield and under-explored Yalgoo-Singleton greenstone belt.

Firefly plans to commence maiden exploration program at the Yalgoo project as soon as permitting allows.

Yalgoo hosts a JORC 2004 mineral resource of 2.75 million tonnes grading 1.57 grams per tonne of gold for 140,000 ounces of contained gold.

The Melville deposit is not reported in accordance with the JORC code 2012, with its upgrade becoming a priority for Firefly post-acquisition.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.