Evolution Mining plans to strengthen its presence in Queensland through the acquisition of the Connors Arc exploration project from Orion Minerals.
Connors Arc, an early-stage exploration project covering around 3200km2, is 160km northwest of Rockhampton.
Evolution describes it as a technically-compelling project with “multiple and very-extensive alteration zones,” which could be indicative of multiple preserved epithermal gold systems.
Connors Arc has similar geological characteristics to Evolution’s 1Moz-plus Mt Carlton and Cracow mines in Queensland, the company added.
Evolution will acquire the project with an $1.5 million cash payment, followed by two $500,000 payments, both conditional on tenement renewal and extension conditions.
The agreement also includes a 2 per cent smelter return royalty over gold produced at Connors Arc, with payments capped at $5 million.
Evolution vice president discovery Glen Masterman said the Connors Arc acquisition was in line with the miner’s strategy of building a pipeline of quality exploration projects.
“It represents a rare opportunity to secure a large and underexplored land position in a region where we are already operating and have significant expertise,” Masterman said.
Orion managing director Errol Smart described Connors Arc as a non-core asset for the company.
“The sale of the non-core tenements was consistent with Orion’s decision to place greater focus on its flagship project, the Prieska zinc-copper project in the Areachap Terrain, Northern Cape, South Africa and its highly prospective regional exploration projects within the Areachap Belt, including the advanced Jacomynspan nickel-copper-cobalt project,” Smart said.
Both Evolution or Orion have the option to terminate the deal if it hasn’t been executed by October 31.