Victory Mines has completed the purchase of the Coogee gold project with the company expediting the terms of its farm-in agreement through a share purchase agreement. The company will issue the current holders of the project, Ramelius Resources, $1 million in shares to deliver full ownership to Victory.
The agreement between the two parties is subject to the required regulatory and third-party approvals, all of which are to be completed within a three-month period. Presently, Victory owns 10 per cent interest in the project with this agreement moving the company to 100 per cent ownership of the granted mining tenure.
Victory Mines Executive Director, Matthew Blake said:
“The acquisition of the remaining 90% of the Coogee Gold Project represents a significant step for the Company. On completion we look forward to welcoming Ramelius Resources Limited as a shareholder of Victory Mines Limited.”
The Coogee gold project is located 55km south-east of Kalgoorlie on the north-eastern shore of the Lake Lefroy in Western Australia’s Eastern Goldfields. The small open pit operation at Coogee was developed by Ramelius Resources in 2013, with the now mid-tier miner extracting 20,400 ounces at a respectable grade of 4.7 g/t gold. Curiously, the project is now surrounded on all sides by Lefroy Exploration, taking a strategic position within its high-profile tenure.
Whilst Ramelius mined a lucrative prize from the Coogee deposit, the company left more than one or two interesting intercepts behind, including some impressive high-grade results just below the historic pit floor. Drill results include 3m at 21.73 g/t gold, 2m at 14.90g/t gold and 2m at a notable 28.70 g/t gold.
Victory’s analysis of the Coogee ore system indicates that the gold mineralisation continues at depth and along strike, with a number of rich intercepts yet to be followed up with systematic drilling. The more impressive results outside open pit environs include 6m at 16.80 g/t gold from only 36m downhole, 5m at 11.13 g/t gold from 82m and 3m at 21.03 g/t from 104m.
The company has now kicked off drilling across the Coogee tenure and is currently neck-deep in a 4,000m reverse circulation drilling program, which has perhaps prompted this surprise jump to 100 per cent ownership of the project.
Coogee already hosts a modest resource of 96,000 tonnes at 3.4 g/t gold and with drilling already underway, Victory will no doubt be looking to quickly build on this total in the coming months as gold continues to track at around US$1,900 per ounce.
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