Genesis Minerals has sold its subsidiary, Admiral Gold, to Labyrinth Resources in a deal worth $4.75 million.
Admiral owns 100 per cent of the Mulwarrie gold project in Western Australia, which Labyrinth has been eyeing off due to its high-grade growth potential. Mulwarrie also sits within 55km of Labyrinth’s Comet Vale gold project.
Labyrinth chief executive officer Charles Hughes said the acquisition was a compelling one for the company.
“Mulwarrie has a high-grade resource, is located on granted mining tenure and has significant resource extension and exploration potential,” he said.
“Labyrinth is acquiring Mulwarrie for the exceptional high-grade growth potential historically constrained by tenure. The acquisition will see Genesis become a strategic substantial holder in the company.”
The acquisition comprises two granted mining leases that sit 10km north-west of the 81,000 ounce per annum Davyhurst gold mine.
No drilling has been undertaken at the site since 2019, with Labyrinth excited to test extensions to historical drill intercepts. The acquisition will see the company become the first owner to consolidate the wider Mulwarrie gold project.
The tenements making up Mulwarrie lie within a 10km-wide greenstone belt, forming the north-west extension of the Coolgardie Line.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
