THE BOURSE WHISPERER: Orion Gold (ASX: ORN) has entered into a binding heads of agreement, which will result in the company acquiring controlling stakes in approximately 1,600 square kilometres of tenements across Western Australia’s Fraser Range and Tropicana belts.
The agreement involves Orion acquiring all the shares in Kamax Resources and covers more than 913sqkm of granted tenements and 669sqkm of additional applications in the two belts.
The Cundeelee project is located between the Tropicana gold project to the north, owned by Independence Group and AngloGold Ashanti and the Nova nickel-copper-cobalt project to the south, owned by Sirius Resources.
Orion Gold considers the tenement areas cover prospective targets for both Tropicana-style gold and Nova-style nickel deposits.
Kamax has obtained funding of $100,000 under the WA Government’s co-funded Exploration Incentive Drilling Scheme, offered by the Department of Mines and Petroleum.
“The Kamax ground is in a district that has delivered two of Australia’s most important mineral discoveries of the past decade,” Orion Gold managing director Errol Smart said in the company’s announcement to the Australian Securities Exchange.
“The advances in geological understanding of this region, which has become a prime investment destination, are revealing the potential for further major discoveries.
“The opportunity to acquire extensive ground holdings, located on prime target structures and with large sampling databases from previous work, is an important opportunity for Orion.
“The fact that bedrock intersections of both gold and nickel exist on the tenements is of prime importance.
“We believe that re-interpretation of extensive historic data, together with the applications of modern exploration techniques, will provide a time and cost advantage to Orion as we strive to prove the potential of this ground.”