THE BOURSE WHISPERER: Arc Exploration (ASX: ARX) has signed an Option to Farm-in Term Sheet on a gold project located in the Mount Garnet district of Far North Queensland.
The project is the company’s third gold property in Australia.
The Mount Garnet project is held 100 per cent under mining leases by private company Snowmist Pty Ltd.
According to Arc Exploration the project contains an advanced gold target the company considers to have potential to be expanded.
The company also intimated the ML’s also have potential for the discovery of new gold resources.
“The Mount Garnet project is the third area identified by our search for new gold and copper-gold opportunities in eastern Australia, Arc Exploration managing director John Carlile said in the company’s announcement to the Australian Securities Exchange.
“It provides ARX with a more advanced gold prospect with potential for expansion as well as several other gold targets within the leases that remain to be tested.
“As with the two previously announced options to farm-in in New South Wales at Oberon and Junee, Mount Garnet provides ARX with the opportunity to establish a foothold in a major gold and copper-gold producing district.”
Location plan showing Mount Garnet project area. Source: Company announcement
Key terms of the agreement are:
– Subject to a 90 day exclusive due diligence period ARX may enter a two year option period for a payment of $50,000 to Snowmist and minimum expenditure of $150,000 during the option period;
– ARX may then earn a 51 per cent interest by sole funding $500,000 within two years; and
– ARX may then earn up to an 80 per cent interest by sole funding a further $580,000 within a further one year.
The Mount garnet project currently comprises three small mining leases located in the Hodgkinson Province.
The Triple Crown gold deposit is located on one of the mining leases and is described by Arc Exploration as being a gold-bearing quartz-sulphide stockwork and hydrothermal crackle breccia hosted in the outer shatter edge of a magmatic-hydrothermal breccia pipe that cuts granite porphyry and the metasedimentary country rocks.
The gold mineralisation at surface forms an annular pattern on the margin of the breccia pipe.
The company indicated similar gold deposits that have been mined in the region include Red Dome/Mungana (3 million ounces of gold) and Kidston (4 million ounces of gold).
Arc Exploration has been provided information by Snowmist, which it said indicates Triple Crown contains a modest-sized, low-grade gold and silver resource.
The company will assess Triple Crown further during its due diligence process.