Westgold Resources (WGR) is pleased to advise that it has acquired the 49% relevant interest in the Great Fingall Deeps from Great Fingall Mining Company NL. This interest contains 52,000oz of Probable Reserves and 132,000 ounces at 9.1 g/t Au of Identified mineral resource. It is anticipated that completion of the acquisition will occur within the next week.
The consideration for the relevant interest is as follows:
- AUD $150,000 in cash
- The allotment of 3.0 million fully paid ordinary shares in Westgold, of which1.0 million ordinary shares will be subject to a 12 month voluntary escrow period.
- A deferred payment of AUD$5 per ounce for all ounces produced from the Defined Area in the Great Fingall Farm-in Agreement.
The Great Fingall mine produced 1.2Moz at a grade of 19.5 g/t Au up until 1918 and is one of the highest grade and most significant producing gold mines in the Murchison region. The mine has not been the subject of any modern underground development, and the Company considers that in conjunction with the proposed development of the adjacent Golden Crown mine that there is significant upside to be achieved through the conversion of the remnant resources above the current reserves and additional exploration for extensions to the known mineralisation.
Westgold Managing Director Scott Huffadine said “this agreement is another step by Westgold to finalise its development plans for the entire Central Murchison Gold Project, and allows for the unencumbered development of all remnant and down plunge extensions of this quality high grade asset which has produced 1.9Mt @ 19.5 g/t Au for an average production profile of over 1500 ounces per vertical metre (OVM).”