West Perth-based nickel and gold explorer Australian Mines Ltd will acquire leasehold and mineral rights over 86 sqkm of nickel tenements in Kalgoorlie for $3 million in cash, the company announced today.
West Perth-based nickel and gold explorer Australian Mines Ltd will acquire leasehold and mineral rights over 86 sqkm of nickel tenements in Kalgoorlie for $3 million in cash, the company announced today.
The full text of a company announcement is pasted below
Australian Mines Limited (ASX: AUZ) is pleased to announce details of an agreement which nearly doubles the company's position in nickel hosting tenements surrounding its Blair nickel mine, south of Kalgoorlie, W.A.
Australian Mines has reached agreement in principle with Harmony Gold (Australasia) Pty Limited (Harmony) for the acquisition of the leasehold and mineral rights to Hampton East Location 45 and adjoining leases totalling 86km2.
Commenting on the deal, Australian Mines' Chief Operating Officer, Brett Young said, "We are very excited to be acquiring additional nickel resources and exploration targets, especially with global supplies remaining very tight at present. The additional land holding will almost double our current tenement position within this world class nickel region."
Australian Mines will pay Harmony a total of $3 million in instalments of $1.5 million on signing the acquisition agreement, and a further $1.5 million within 6 months subject to normal conditions precedent. The funds will be paid from cash flow generated by the Blair nickel mine.
East Location 45 contains the historic Mt Martin gold mine and several identified nickel lodes below the pit base, the Goodyear nickel resource and additional untested nickel anomalies. Harmony will retain an interest in the gold from Mt Martin for a period of 24 months. Location 45 has historically been primarily explored for gold with limited nickel exploration completed
Previous nickel exploration at the Goodyear project located on the Carnilya Hill- Mt Martin nickel belt was successful in identifying nickel resources based on nickel sulphide intercepts varying in depths from 200m - 500m that included 3.8m @ 7.3%, 1m @ 12.7%, 3m @ 4.9% and 1m @ 8.5%.
A number of other nickel sulphide prospects have been identified in the Duplex Hill - Blair-Corsair mafic-ultramafic belt as having nickel potential within the tenement package. Previous exploration suggests that Blair type extensions could extend into Location 45.
"This acquisition continues Australian Mines' strategy of acquiring tenements which host advanced nickel resources and advanced exploration prospects. The acquisition follows in the footsteps of the Marriott's acquisition last October, and positions the Company well to grow production into the future," Mr Young added.
