Australian exploration company Firetail Resources has entered into two separate binding option agreements with Athena Gold and Badlands Resources to acquire two high-grade projects in prolific gold-producing regions in the US.
Under the deals, Firetail will acquire 80% of the Excelsior project in Nevada and 100% of the Bella project in South Dakota, US, respectively.
The Excelsior Springs project within Nevada’s Walker Lane Trend has produced more than 40 million ounces (moz) of gold, with the Buster Mine yielding more than 19,000oz at 41 grams per tonne.
The trend is home to a variety of gold mines at different stages, including existing operations and those under development, such as the AngloGold Ashanti Silicon/Merlin Project, Kinross Gold’s Round Mountain Mine and the Comstock Project.
Firetail Resources has committed to spending $5m (A$7.71m) over five years to earn its 80% interest in Excelsior, with Athena retaining a 20% free-carried interest until a definitive feasibility study is completed.
The commercial terms for the Excelsior Springs project include an exclusivity fee of A$50,000, cash consideration of A$200,000, an issue of 32 million fully paid ordinary shares and a 1% net smelter royalty (NSR) to Athena Gold on ground without pre-existing royalties.
The agreement is subject to shareholder approval and a formal joint venture agreement, with completion expected by 7 August 2025.
The Bella project is within the Homestake Gold Belt, known for hosting approximately 85moz of gold.
For the Bella project, Firetail has paid an exclusivity fee of C$100,000 ($72,777.6) and will pay a cash consideration of C$600,000, along with issuing 17 million fully paid ordinary shares.
A 1% NSR royalty is granted to Badlands Resources, which can be repurchased by Firetail Resources within five years post the commencement of commercial production for C$500,000.
Upon completion of both transactions and the issue of deferred York Harbour Consideration Shares, Firetail will have a total of approximately 504 million shares on issue.
Firetail managing director Glenn Poole said: “The acquisition of such high-calibre gold assets will complement our current portfolio and leverages off the board’s strengths, enabling us to diversify our exposure to the prevailing strong gold and copper prices. The Excelsior Springs Project represents an advanced, drill-proven opportunity with gold from surface, and the mineralisation remaining open in all directions with the potential to deliver an expedited resource – reinforced by the presence of further historic mines within the mineral claim that highlight the potential precious metal endowment of the area.
“The Bella Project sits in the shadow of a giant, with the Homestake mine being one of the most notable in modern history. The evidence we see on the ground – of extensive mineralisation-hosting Banded Iron Formation and multiple, significant grades occurring across the wider project area is highly encouraging. The opportunity to follow up on multiple, extensive, historically producing trends that have not been drilled in the modern era in a district known for its size and scale is hugely exciting.”
In September 2024, Firetail met the conditions of an option agreement to earn interest in York Harbour Metals’ Newfoundland copper-zinc-silver project.
