Evolution to acquire Queensland project

Drilling at Evolution's Cracow mine in QLD.

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.

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