Kalgoorlie Gold Mining (KalGold) has completed its farm-in agreement at the Pinjin gold project situated in the Laverton Tectonic Zone.
The company surpassed all key metrics to secure a 75 per cent interest in a key package of tenements hosting the Kirgella Gift and Lighthorse prospects.
This gives KalGold control over tenure covering the Kirgella Gift and Providence mineral resources, the Lighthorse discovery and the full Lighthorse corridor, which extends north to the Wessex prospect – located less than 1km from Hawthorn Resources’ Anglo Saxon open pit mine.
“This marks a major milestone for the company,” Kalgoorlie Gold Mining managing director Matt Painter said. “We are incredibly proud of the KalGold team’s achievements since commencing the farm-in at Pinjin.
“In less than two years, the company has defined over 75,000 ounces of gold in a near-surface mineral resource following JORC Code (2012) guidelines, at Kirgella Gift and Providence.
“Beyond this, we have defined gold mineralisation and anomalism across multiple prospects throughout the tenement package, including the hugely prospective Lighthorse and Wessex prospects.”
The $1.65 million cash transaction complements KalGold’s 100 per cent-owned landholding in the underexplored Laverton Tectonic Zone, giving the company a strong position in the region.
“Importantly, completion of the farm-in puts KalGold in a strong position to drive engagement with strategic and third parties,” Painter said.
“The board is also pleased to have reached an agreement with the vendors for an all-cash settlement, which minimises dilution for shareholders and maximises potential upside as we advance exploration at the under explored, and highly prospective Pinjin gold project.”
Under the agreement, the vendors are free carried until a bankable feasibility study and decision to mine are delivered, at which point they may elect to contribute, sell, or convert their interest into a two per cent net smelter royalty.
Assay results from KalGold’s recent large-scale aircore drill program, targeting north and south of the Lighthorse discovery are pending and will be key to shaping the next phase of the company’s exploration strategy.
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