Red 5 Limited (ASX: RED) has exercised the Option Agreement to acquire a 100% interest in Mining Lease M37/54, which includes the 62,000 oz Great Western gold deposit in WA.
Through its wholly-owned subsidiary, Darlot Mining Company Pty Ltd, Red 5 has executed a $2.5 million Sale and Purchase Agreement (SPA) with the tenement holder, Terrain Minerals Ltd (ASX: TMX).
Great Western is located just 80km trucking distance from Red 5’s Darlot gold mining and processing operation.
Red 5 Managing Director, Mark Williams, said the acquisition supports Red 5’s multi-strand strategy to expand the Darlot Mineral Resource base, which includes regional ‘bolt-on’ acquisitions in addition to aggressive exploration being undertaken as part of the Darlot Mining Hub Strategy.
He said the acquisition of the Great Western gold deposit and surrounding Mining Lease represented a high-quality strategic addition to the Company’s Mineral Resource base within trucking distance of the Darlot mill.
Having completed the due diligence drilling, we believe the Great Western deposit represents a highly prospective addition to our Darlot Mining Hub Strategy, with an existing 62koz Mineral Resource and exploration upside, particularly at depth,” Mr Williams said.
“With an acquisition cost of A$40 per Resource ounce, it boosts our Mineral Resource base within economic trucking distance of the Darlot mill.
“We will continue to seek further such opportunities – both through our exploration programs as well as through strategic acquisitions – with the aim of establishing five to ten years of Ore Reserves either at or within trucking distance of the Darlot mill as part of the Company’s Darlot Mining Hub Strategy.”
Red 5 completed Reverse Circulation (RC) drilling during the due diligence period, with significant intercepts including: