Battery Minerals is set to acquire a major interest in privately-held Gippsland Prospecting in a bid to secure an exploration licence next to Stavely Minerals’ Thursday’s Gossan copper-gold project in Victoria.
Gippsland Prospecting has the sole right to apply for the “highly-prospective” licence after winning the Victorian Government tender.
The tenement, called Block Four, covers 809 square kilometres and hosts the historic Moyston gold mine that has previously been explored by BHP in 1997.
There is no further drilling after this, despite mineralisation remaining open at depth and along strike.
Block Four is seven kilometres from the Stawell gold mine, which has produced five million ounces of gold.
Battery Minerals chairman David Flanagan said there was extensive evidence to support the view that Block Four is highly prospective for both gold and base metals.
“The tenement has not been thoroughly explored for more than a decade and even then, it was limited to shallow drilling near the Stawell mine,” he said.
“Given the recent substantial exploration success close by and the outstanding prospectivity of the geology, we are looking forward to applying modern exploration techniques and drilling to a new project that has effectively been mothballed for over 10 years.”
Battery Minerals plans to offer $335,000 and more than 294 million shares to Gippsland Prospecting shareholders in return for 67 per cent of the target.
Block Four will be renamed E67801 and two Gippsland Prospecting directors, who are exploration geologists, will become directors of Battery Minerals.
The acquisition is subject to shareholder approval and the grant of the exploration licence.