Westgold Resources is set to acquire an interest in the Peak Hill joint venture (JV) from Fe subsidiary Jackson Minerals.
The proposed acquisition targets a 20 per cent interest held by Jackson in tenements E52/1671 and E52/1659 in the western Bryah Basin, Western Australia.
Westgold already holds gold rights on 80 per cent of the Peak Hill JV tenements following its takeover of the Fortnum gold operations from Auris Exploration in 2015.
Fortnum consists of four mining centres that include Peak Hill. The operations also comprise a one million tonne a year carbon-in-leach (CIL) plant.
Westgold will now secure the remaining 20 per cent gold interest held by Jackson via its subsidiary Aragon Resources, on top of a further 20 per cent free carried interest in the Forrest and Wodger copper prospects in Western Australia.
Chairman Peter Cook said the acquisition cleared the path to mining the high-grade gold cap above the Forrest Prospect.
“The mining of the gold cap will also expose the high-grade copper already defined at Forrest, and Westgold could consider the mining and commercialisation of the copper with (Peak Hill operator) Auris, by the simple addition of float cells at its operating Fortnum plant,” Cook said.
Upon completion of the transaction, Fe will receive 200,000 shares in Westgold which are valued at $399,000.
Fe chairman Tony Sage said the company was pleased to crystallise value for these tenements via the receipt of Westgold shares.
“This gives us the option to continue to participate in the projects indirectly via our shareholding or monetise it to assist us in funding the ongoing exploration activities at our prospective Pilbara tenement package,” Sage said.
Initial exploration drilling has commenced at the Peak Hill district, in view of establishing a development plan.