THE BOURSE WHISPERER: RareX Limited (ASX: REE) has retained 100 per cent-ownership of the Orange East gold project from Alkane Resources.
The Orange East gold project is located near the advanced McPhillamys gold project of Regis Resources in New South Wales.
RareX entered into a farm-out agreement with Alkane in 2015 after McPhillamys was discovered by the Newmont-Alkane JV.
Under the agreement, Alkane had the right to earn up to a 60 per cent interest in the tenement, for which Alkane was in the process of negotiating a final access agreement with land-holders when it discovered the Boda copper-gold deposit and decided to focus its attention there.
Subsequently, Alkane has now returned the tenement to RareX as required under the terms of the farm-out agreement, meaning that RareX retains 100 per cent-ownership.
“The Orange East gold project area has strong geological and geochemical similarities to the McPhillamys project, being located just 15km north-northwest along strike,” RareX said in its ASX announcement.
“The project is located on the eastern margin of the Molong Volcanic Belt with much of the tenement hosting the Mullions Range Imbricate Thrust Zone (MRIZ).
“The regionally significant Godolphin-Copperhannia Thrust Fault zone (GCFZ) traverses through the centre of the tenement and host dozens of historical copper-gold workings.
“An initial geological review of the Orange East gold project has identified several advanced prospects, with the Gunnarbee prospect in particular showing particularly striking similarities to the McPhillamys deposit.”