Red 5 Limited’s (ASX: RED) , through its wholly-owned subsidiary Darlot Mining Company Pty Ltd (DMC), has entered into an agreement to acquire a range gold exploration leases in Western Australia.
The Option and Sub-lease agreement with vendor Andrew Paterson is for the right to acquire a sub-lease over 13 blocks in Exploration Licence E37/1220.
The Sub-lease Area includes the Cables and Mission gold deposits which have a reported combined estimated JORC 2004 compliant mineral resource totalling 1.5M tonnes at an average grade of 3.8g/t Au for 185,400 ounces of contained gold.
The agreement entitles Red 5 to conduct due diligence and drilling activities within the Sub-lease Area to determine the potential of the Cables and Mission gold deposits to be upgraded to Indicated ± Measured Resource status, and to be mined and trucked to the company’s Darlot processing plant, located approximately 10km to the south.
Red 5 Managing Director, Mark Williams, said the proposed acquisition represents another strategic low-risk opportunity to grow the company’s Resource base in the area surrounding the Darlot gold processing plant.
“We are delighted to have the option to acquire the southern portion of E37/1220. It is last reported to contain JORC 2004 Inferred Resources totalling 185koz and is located adjacent to our existing Darlot operations.
“Significantly, the rock units hosting the Cables and Mission deposits are similar to those that host the Centenary orebody, which is currently being mined from underground at Darlot.
“This agreement over the Cables and Missions deposits follows the option agreement we recently secured over the Great Western deposit, with these proposed acquisitions having the potential to provide additional sources of ore feed for the Darlot processing plant,” Mr Williams said.
See http://red5limited.com/ for more…