Ausgold and Cygnus Gold Strike Stanley Farm-in Agreement
THE BOURSE WHISPERER: Ausgold (ASX: AUC) and Cygnus Gold (ASX:CY5) have inked a Farm-in Agreement regarding the latter’s Stanley gold project, located 25 kilometres northeast of the former’s 100 per cent-owned Katanning gold project in Western Australia.
Under the terms of the agreement, Ausgold has the right to earn up to an 85 per cent interest in the project over three years by spending:
$500,000 over 24 months to earn 51 per cent; and
A further $250,000 in the final 12 month period to earn an additional 34 per cent interest.
The Stanley gold project comprises two exploration licences E70/5131 and E70/4787 covering approximately 233 square kilometres of the northern Katanning Greenstone Belt.
Past drilling at the project has intersected gold grades of note.
Six advanced drill-ready targets, including those adjacent to Ausgold’s extensive ground position, have previously been identified by way of recently collected geophysics, geochemistry and drilling activities.
Ausgold considers the project’s a large, mineralised strike length demonstrates potential for large scale discovery in a relatively underexplored region.
“The Farm-in Agreement with Cygnus adds a district-scale option that supports our ambition to establish a multi-million-ounce Resource position at Katanning,” Ausgold managing director Matthew Greentree said in the company’s ASX announcement
“The greater Katanning area is under-explored and based on previous work, we see no reason why the region cannot host additional Katanning central zone high-grade style discoveries.
“Ausgold has already established a 1.84 million ounces Resource at Katanning and is well funded to leverage this experience to unlock the potential of the broader Katanning district.”
TO READ THE FULL ANNOUNCEMENT: CLICK HERE
Email: info@ausgoldlimited.com