Venus Metals Corporation Limited (ASX:VMC) has entered into a binding sale and purchase agreement with Beau Resources Pty Ltd to acquire 100% of the Penny East tenement E 57/1128.
This tenement is adjacent to the Penny West Deep South prospect where Venus and Youanmi Gold Project joint venture partner Rox Resources Limited (ASX:RXL) will soon begin an airborne electromagnetic survey along the Penny West shear zone.
The zone also hosts the nearby Penny West mine which is not held by Venus.
Penny East is to the southeast of most of the tenements that comprise the Youanmi JV project
Subject to ministerial approval
The company has paid consideration of $30,000 plus GST and will pay Beau Resources a 1% gross smelter royalty in respect of any precious or base metals mined, processed and sold from the tenement.
The transaction is subject to ministerial approval under the Mining Act 1978 (WA).
Penny West Deep South survey
VMC and RXL's Xcite airborne electromagnetic survey will cover about 12 kilometres strike length of the Penny West shear zone considered to be prospective for high-grade gold mineralisation similar to that at Penny West and Penny North.
The survey will target potential conductive horizons along the Youanmi Shear Zone that may represent increased sulphide content potentially associated with gold mineralisation, similar to the setting observed at the historical high-grade Penny West Gold Mine and the Penny North deposit.
At present, a 4,000-metre aircore drilling program is underway at Penny West Deep South Gold Prospect on E57/1078, which abuts the new Penny East tenement to the west
The drilling is testing a multi-element geochemical anomaly and covers an area of about 800 metres x 500 metres, about 4 kilometres south and along strike from the Penny West Gold Mine.