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Lynas given booster

Lynas Gold NL’s gold ambitions in the Ashburton Mineral Field have been given a shot in the arm.

This follows the clinching of a deal with its joint venture partners in the Paraburdoo Gold project to acquire sole rights to explore for and mine any oxide gold deposits within a 20 square kilometre area of the JV operations.

The agreement also gives Lynas rights to mine and treat ore from two key areas outside the JV area – the high-grade Peake gold deposit and the Waugh prospect, both located three kilometres from the Paraburdoo plant – as well as the right to treat all medium and low-grade stockpiles at Paraburdoo after completion of treatment of high-grade ore in August 2001.

Lynas will take control of all other additional gold resources in the area, with Sipa/Arcadia jointly receiving a base royalty of 2 per cent of gold recovered from Lynas’ sole-funded mining and treatment.

The area includes the Zeus prospect, 1km east of the processing plant, where Sipa previously reported reverse circulation drilling results from Zeus of 28 metres at 3.59 grams/tonne gold and 5m at 2.11g/t in one hole and 20m at 2.53g/t in another.

The Peake deposit contains an indicated oxide resource of 75,000 tonnes at 8.9g/t for 21,500 ounces of contained gold.

Under the agreement, Lynas will retain 69 per cent of all gold produced from the Peake deposit, with the balance going to its joint venture partners Sipa Resources International NL and Arcadia Minerals NL.

Waugh has ore grade values from surface sampling over a strike of 250m. Three RC drill holes have been completed to date, with one intersection of 5m at 19g/t returned.

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