Echo Resources Ltd (ASX:EAR) has applied for 128 square kilometres of highly prospective ground contiguous to its flagship Julius gold deposit north of Kalgoorlie in Western Australia.
The Julius gold deposit is situated in the Yandal greenstone belt in the Eastern Goldfields, one of Australia’s most prolific gold regions.
The Yandal region has produced many multi-million ounce gold deposits, including Bronzewing (4 million ounces), Jundee (5 million ounces) and Darlot (3 million ounces).
The new acquisition comes at an opportune time for echo since a recent scoping study for Julius has projected a positive cash flow of $47 million by mining 68,740 ounces of gold for 2 years.
All in sustaining costs are estimated at $921 for an ounce of gold.
The new tenement has created a large contiguous landholding which complements existing tenements and provides Echo with over 850 square kilometres of prime exploration ground.
A Feasibility Study is already underway that could increase the resource base, which is open along strike and at depth.
The company is well funded after raising $3.23 million in May from an oversubscribed share placement to institutional and sophisticated investors.
Last week, Simon Coxhell was appointed as CEO of Echo Resources. He was the executive technical director of Dubber Corp Ltd (ASX:DUB) until 2015.
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