The Mount Henry Gold Project has entered a new chapter, having been acquired by Metals X Limited.
Metals X announced last week they had signed a binding agreement with project owners Panoramic Resources and Matsa Resources.
Metals X chief executive Peter Cook said the Mount Henry Gold Project acquisition was excellent value, and represented substantial accretive value for shareholders.
“Essentially, it presents an option to fill the Higginsville process plant for at least another ten years on its own, and presents several substantial expansion options,” he said.
Mount Henry is located 75km south of Metals X’s Higginsville operation, and 15km south of Norseman in the south of Western Australia.
The goldfields project has three known deposits, namely North Scotia, Selene and Mt Henry, each of which are on granted mining leases.
JORC compliant resources total an estimated 1.656 million ounces, in 43.18 million tonnes of ore at 1.19g per tonne.
The contained mining reserve is 922,900 ounces in 20.2 million tonnes at 1.42 grams per tonne.
Previous plans to build a 3Mtpa processing plant with associated infrastructure will be revised, with Metals X planning to transport ore to its existing Higginsville Gold Operation, which may require expansion for its processing plant.
Panoramic Resources and Matsa Resources hold 70 per cent and 30 per cent shares in Mount Henry respectively, and will receive 22 million fully paid ordinary shares in Metals X for the deal, subject to FIRB approval.