Former Chilean mining specialist Emu NL (ASX: EMU) has transitioned into a WA-focused precious/base metals explorer and aspiring gold producer with a number of project acquisitions.
Emu has acquired the:
We are delighted to have secured these exciting projects on such favourable terms in the face of bullish sentiment for gold, nickel and PGE’s,” EMU’s Chairman, Peter Thomas, said.
“Gnows Nest represents a near-term, gold production opportunity with a defined initial resource covering an exceptionally high -grade historic mine. Significantly, it sits within a highly prospective geological setting with considerable exploration upside.
“The spot price of gold, coupled with the Board’s vision as to where it may come to rest, explains why the Company is so excited that it has secured this project, which has been tied up in the hands of private landholders for over 30 years.
“In addition, exploration work can commence immediately on our highly prospective base metal exploration portfolio within the emerging South West Terrane of WA, highlighted by the recent Julimar PGE-Ni -Cu discovery by Chalice Gold Mines Limited.
“Following our exit from Chile and subsequent travel restrictions imposed by the COVID-19 pandemic, the Board made the strategic decision to focus on WA, where it is expected our activities can continue largely unaffected by the pandemic.
“These compelling acquisitions have resulted from an extensive and comprehensive project generation and due diligence process and were directed at being a value-accretive and well -rounded earl y to advanced-stage platform from which to launch the company in WA.
“We are now well-positioned to hit the ground running in a cost-effective manner and expect to announce a series of milestones over the coming months, with a view of advancing towards production and generating near-term cash flow from the Gnows Nest project.
“Another WA gold project is under consideration and while there can be no guarantee a transaction will be concluded, negotiations are at an advanced stage.”
The headline acquisition is the historic Gnows Nest gold mine with reported production of ~27,925oz at a recovered grade of 22g/t Au between 1923 and 1941, which was reported to have shut down during the World War II due to a shortage of mining labour.
EMU’s priority at Gnows Nest will be to advance the Mineral Resource as a near-term production opportunity via a simple shallow open cut gold operation for possible toll treatment.
The project, which encapsulates an historic gold mining field, will also be the subject of ongoing exploration directed at growing the resource base. The potential for further high-grade gold discoveries associated with other dilational zones within the tenement package is considered high.