Ramelius Resources (ASX: RMS) has made the first payment of $5 million to Agnew Gold Mining Company, a subsidiary of Gold Fields Limited, for the acquisition of the advanced Vivien gold project in Western Australia.
It now has access to the tenements and expects to start its initial 17 hole program next week.
This is planned to increase confidence in the current resource, gather geotechnical information, metallurgical samples and to test for extensions of the high grade lode at depth.
The company is acquiring Vivien from Agnew for $10 million. It had previously paid a $500,000 deposit, and has until 30 June 2014 to pay the remaining $4.5 million.
The Vivien gold project is a high grade vein style deposit located near the Agnew gold mine in the northern goldfields of Western Australia, and carries a current Indicated Mineral Resource of 579,000 tonnes at 8.3 grams per tonne for 154,000 ounces of gold.
It is also located close to existing milling infrastructure.
Ramelius is currently raising up to $16.3 million to fast track exploration and development of Vivien through one for four non-renounceable entitlement issue.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.