ERO Mining (ASX: ERO) will join the gold hunt in the Yilgarn Craton in Western Australia, with the company to acquire the Spargoville Gold Project via an all scrip transaction, with around 133.3 million shares (around A$400,000) to be paid to the vendor.
The project is also prospective for nickel sulphide mineralisation.
ERO will wholly-acquire Spargoville from Ramelius Resources (ASX: RMS), and highlighting the prospectivity of the project it encompasses the previously mined, high-grade Wattle Dam deposit - and over 11,440 ha of surrounding tenements.
The Wattle Dam underground gold mine was mined by Ramelius between 2006 and 2012, producing 880,000 tonnes at 10.1 g/t gold for around 286,000 ounces.
The potential for ERO at Spargoville is that it is an advanced exploration project which is prospective for blind orogenic structurally controlled gold lode deposits, similar to Wattle Dam.
Within the region, gold mineralisation can be traced over 30 kilometres of strike of the Spargoville Shear, where the possibility exists for extensions and repetitions to known mineralisation for the project which offer attractive targets for further exploration.
The Spargoville Project consists of a substantial tenement package of 27 granted mining leases, two granted exploration licences, five prospecting licenses and two miscellaneous licences which include 100% gold rights and various nickel rights.
The project is located 60 kilometres southeast of Coolgardie and 25 kilometres southwest of Kambalda within the Coolgardie Mineral Field.
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