THE BOURSE WHISPERER: Metals X (Metals X) has continued its gold project procurement endeavours having reached a binding agreement with Silver Lake Resources (ASX: SLR) to acquire the Comet gold project, located near Cue in the Murchison Goldfield region of Western Australia.
The acquisition is to cost Metals X $3 million in cash.
Metals X said the deal is subject to Ministerial consent for the transfer of tenements and Foreign Investment Review Board approval, although it anticipates this should be completed before the end of the year.
The Comet gold project covers an area of 50 square kilometres and includes the Comet, Comet North and Pinnacles Mines which includes the Lunar/Solar prospects.
Silver Lake has previously reported a total mineral resource estimate of 3.8 million tonnes at 2.9 grams per tonne gold containing 353,000 ounces of gold.
Metals X declared its initial focus will be on the Comet mine, which the company plans to develop as an underground operation consisting of a current total mineral resource estimate of 1.46 million tonnes at 4.8g/t gold containing over 225,000 ounces.
“This is another great value acquisition for Metals X which presents an immediate addition to our recently commissioned Central Murchison gold project,” Metals X CEO Peter Cook said in the company’s announcement to the Australian Securities Exchange.
“It has very good underground mining metrics and excellent potential to be a strong and steady contributor to our aggregate gold production in the near term.”