Peninsula Mines is set to acquire a tenement gold exploration package in Western Australia’s Southern Cross region.
The company has signed a binding agreement to acquire the 76-square kilometre tenement in the highly prospective and relatively under-explored area of the Southern Cross Greenstone Belt.
This portfolio consists of 20 prospecting licenses, one exploration license and one exploration license application.
The licenses extend over a 30-kilometre contiguous strike, with sections covering the main gold bearing structure in the Greenstone Belt.
Peninsula Mines managing director Richard Henning said the acquisition brought the company a “tremendously exciting” opportunity for shareholders to capitalise on the potential in the region.
“We are acquiring a ground package with the potential to host a large-scale gold system,” Henning said.
“A number of high-grade gold intersections, already demonstrated, are virtually untested by modern exploration techniques.
“With airborne geophysics planned for early in the new year and a number of walk-up drill targets, we anticipate drilling to follow in the first quarter of 2020.”
Peninsula Mines and an independent geologist visited the site in mid-November, which gave the company confidence to pursue Southern Cross’ yield potential in the medium term.
The company intends to raise $2 million to fund the acquisition and exploration, including the first round of reverse circulation drilling, at 0.13 cents per share.
The Greenstone Belt region has produced around 15 million ounces of gold historically, which are predominantly from the Marvel Loch and Southern Cross centres.
The Southern Cross gold project is about 380 kilometres from Perth in the Yilgarn goldfields, south east of the Southern Cross township.