Fosterville South will acquire 100% interest in the gold projects from Mercator Gold Australia
Fosterville South Exploration has agreed to purchase three high-grade gold projects, including Timor Project, the Avoca Project and the Moormbool Project, from Mercator Gold Australia, a subsidiary of AIM listed ECR Minerals.
Under the terms of the transaction agreement, Fosterville South will acquire 100% interest in the gold projects from Mercator.
Fosterville South COO Rex Motton said: “We added three robust gold projects without any underlying royalty payments to Mercator. The deferred payments are minimal and are only payable as we increase the value of these projects.”
Details of the three gold projects
The Moormbool project area is located east of Fosterville within the Melbourne Zone and is underlain by Siluro-Devonian rocks, between the Redcastle and Graytown goldfields.
Fosterville said that the project area is largely unexplored, due to pervasive shallow alluvial cover. In close proximity to this regional structure and included within the project area is a magnetic anomaly interpreted to be a small intrusive plug or cupola.
The Avoca project is located approximately 183km west northwest of the Victorian state capital Melbourne. It is centred on mesothermal quartz vein hosted gold and related placer-style ‘deep lead’ gold mineralization.
The gold field, occurring within the Stawell Zone, west of the Bendigo and Melbourne Zones, has produced nearly 750,000 ounces of gold from alluvial gold deposits.
Fosterville said that the Avoca project is highly prospective for hard rock structurally controlled gold deposits, and has previously been mined with significant gold production from both alluvial and hard rock high grade sources.
The Timor project is located immediately east of the project and occurs within the Bendigo Zone of the Lachlan Fold Belt, which contains several hard rock and alluvial gold deposits evidenced by significant historical workings.