De Grey Mining has completed its site-based due diligence work program at the Ashburton gold project in Western Australia.
The emerging gold company was required to complete the program as part of its option to acquire agreement with Kalamazoo Resources, which gives De Grey the option to acquire Ashburton and its contained 1.44 million ounces of gold resources, as well as all associated mining and exploration licences and applications.
“We are delighted to report that as part of the Ashburton gold project assessment process, De Grey has completed its site-based work program, a key milestone of its due diligence studies,” Kalamazoo chief executive officer Luke Mortimer said.
“De Grey has exclusivity for 12 months until February 4 2025, with the right to extend for a further six months to exercise the option, and the completion of its site-based activities is a significant step forward in this assessment process.
“Should De Grey exercise the option and acquire the Ashburton gold project, Kalamazoo will receive an additional $30 million in cash and/or De Grey shares which should result in a significant re-rating of our company and enhance its future prospects.”
With the site-based due diligence work program now complete, De Grey is anticipated to complete camp demobilisation by October 31.
During that time, the company will continue collecting photographic data of historical drill-core stored on site and will complete the relogging of high-priority drillholes through the centre of the Mt Olympus deposit.
Various related earthworks and rehabilitation activities are also expected to be completed by the end of October, with metallurgical testwork to be ongoing for the next few months.
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