The project has been acquired from Corona Resources for A$4m ($2.86m) in cash
Canadian multi-asset mineral resource company Karora Resources has completed the acquisition of Spargos Reward high-grade gold project.
The project has been acquired from Corona Resources for A$4m ($2.86m) in cash, following an extensive due diligence period.
The deal is subject to a minimum spending commitment of A$2.5m ($1.7m) on exploration and development over a period of two-year from the closing date.
Karora Resources chairman and CEO Paul Andre Huet said: “The Spargos Reward Project is an excellent bolt-on project for our Higginsville gold operation (“HGO”) and a great addition to our already strong asset base in Western Australia, providing a new high-grade source of feed just 65km from the HGO mill.
“We intend to fast track Spargos into our growing production pipeline with the goal of beginning to generate cash flow from the Project in 2021.
“Follow up is planned on the exciting exploration upside potential at Spargos, as demonstrated by RC drillhole 19SPRRC004 intersection of 37.1 g/t over 18m (62m to 80m), including 93.1 g/t over 2m from 78m downhole3,4.”
Spargos project tenements cover 33km2 in the Eastern Goldfields of Western Australia
The company said that the tenements of the project cover 33km2 in the Eastern Goldfields of Western Australia.
The Spargos gold project comprises historical JORC (2012) mineral resource estimate of 112,000 oz (785,800 tonnes at 4.4 g/t) indicated resource and 19,000 oz (151,000 tonnes at 4.0 g/t) inferred resource.
Karora said that there are several historic workings within the project in addition to the existing historical resource.
Last month, the Canadian multi-asset mineral resource company reached an agreement to sell its remaining 28% stake in the Dumont nickel project to two private funds advised by Waterton Global Resource Management.