Tyranna Resoruces Ltd (ASX:TYX) has completed the acquisition of the Eureka Gold Project located 50 kilometres north of Kalgoorlie, Western Australia from Central Iron Ore Ltd (CVE:CIO).
The two companies first entered the acquisition agreement for the open cut gold mine in December 2017.
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Consideration for the acquisition consisted of around $1.6 million in cash and around 100 million Tyranna shares.
Tyranna is confident that the Eureka open cut gold mine can be brought into production from existing workings in the near term.
Eureka is currently being mined by a local contractor and ongoing work, scheduled to extend the depth of the current open pit by about 20 meters, was completed on the 25th April 2018.
Resource and reserve drilling to commence
A program of work has been granted for drilling to commence focused on resource and reserve definition.
Drilling will also provide further parameters for planned mining study which will include analysis for economic potential of both open pit and underground operations.
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Existing ore held in stockpiles on site will be transported to the Lakewood toll milling facility.
Tyranna will receive a 4% net smelter royalty generated from the sale of any gold from this tribute mining campaign and will be used to offset the acquisition price.