Miramar signs drill-for-equity deal

Miramar Resources has signed a drill-for-equity agreement with leading contractor Topdrill to support the next phase of exploration at its Gidji joint venture (JV) project in Western Australia.

Under the agreement, Topdrill will cover up to 40 per cent of drilling costs, up to a maximum of $500,000, in exchange for Miramar shares.

The drilling will focus on the high-priority 8 Mile target, with reverse circulation (RC) drilling scheduled to begin in July following the completion of site preparations and ongoing aircore work.

Gidji – which Miramar owns an 80 per cent stake – lies approximately 15km north of Kalgoorlie and is surrounded by active gold operations, including Northern Star Resources’ Kalgoorlie gold operations.

The 8 Mile target is situated along strike from Northern Star’s 8-Mile Dam deposit, which contains seven million tonnes at 1.4 grams per tonne (g/t) gold for 313,977 ounces.

Induced polarisation (IP) surveys by Miramar suggest the potential for a northern extension of this mineralisation, possibly offset by a series of northeast-trending faults.

Miramar executive chair Allan Kelly said the agreement with Topdrill is a strong endorsement of the company’s exploration strategy.

“This new agreement with Topdrill enables us to maximise our drilling budget in testing 8 Mile and other key gold targets at Gidji and we thank them for their support,” Kelly said.

Shares issued under this agreement allows Topdrill to receive Miramar shares at a 10 per cent discount to the 20-day volume weighted average price (VWAP), with a six-month escrow on issued shares.

The agreement will run until December 31, with the $500,000 cap adjustable by mutual agreement.

Since commencing exploration in late 2020, Miramar has made multiple large new gold discoveries with systematic aircore drilling and has defined multiple bedrock targets for deeper drilling.

Miramar believes there is potential for the discovery of a new gold camp – with multiple gold deposits – within Gidji.