THE BOURSE WHISPERER: Red 5 Limited (ASX: RED) has exercised an option to complete the acquisition of the Cables and Mission gold deposits in Western Australia.
Red 5 described the acquisition as strategic, given that the “bolt-on” deposits are located around ten kilometres north of the company’s Darlot gold mine.
Red 5 explained the acquisition forms part of a multi-strand strategy to expand the Darlot Mineral Resource base, which includes ongoing near-mine and regional exploration as well as consolidation of strategic opportunities.
Before completing the acquisition of the Cables and Mission deposits, Red 5 carried out due diligence and confirmatory Reverse Circulation (RC) drilling to validate historical drilling and determine the potential of the Cables and Mission deposits.
Confirmatory Reverse Circulation drilling by Red 5 confirmed the mineralisation with best intercepts of:
7 metres at 5.7 grams per tonne gold;
4m at 14.7g/t gold; and
5m at 3.7g/t gold.
The Cables and Mission transaction follows Red 5’s recently announced acquisition of the Great Western gold deposit.
“The acquisition of the Cables and Mission deposits represents another strategic low-risk opportunity to continue growing the company’s Resource base in the area surrounding the Darlot gold processing plant,” Red 5 managing director Mark Williams said in the company’s annooucnement to the Australian Securities Exchange.
“The acquisition includes a JORC 2004 Inferred Resource which we plan to upgrade to JORC 2012 compliance, while at the same time commencing exploration activities aimed at testing the broader potential of the tenements, which are located in close proximity to our existing Darlot operations.
“Significantly, the rock units hosting the Cables and Mission deposits are similar to those that host the Centenary orebody, which has been mined for many years from underground at Darlot.
“The Cables and Missions transaction follows the recent acquisition of the Great Western gold deposit, both of which are planned to provide additional sources of ore feed for the Darlot processing plant in the coming years.”