Kingwest Resources Ltd (ASX:KWR) has sold the ‘Wells Group’, a group of four tenements in the Leonora region of Western Australia, to NTM Gold Ltd (ASX:NTM) which has the contiguous Redcliffe Gold Project.
The projects, which covesr 426 square kilometres of highly prospective ground for gold mineralisation contains the interpreted northern extension of the Mertondale shear with very little historical on-ground exploration.
NTM considers the new tenement package, which incorporates the E37/1252, E37/1284, E37/1285 and E37/1285, to be a highly prospective early greenfields opportunity.
Consideration for the 100% acquisition was $125,000 in cash and it is expected that settlement will occur within the next seven days.
Acquisition boosts strategic footprint
NTM Gold managing director Andrew Muir said: “NTM is pleased to be able to acquire such a logical bolt-on to the Redcliffe Gold Project given the contiguous nature of the tenements and their prospectivity.
“The acquisition substantially boosts the company’s footprint in the region and we look forward to testing a number of priority targets in due course.”
Redcliffe is a major developing project with established resources close to existing infrastructure and mines including St Barbara Ltd’s (ASX:SMB) Sons of Gwalia, Saracen Mineral Holdings Ltd’s (ASX:SAR) Thunderbox and Red 5 Limited’s (ASX:RED) Darlot mine.
Redcliffe Project and newly acquired ground
Initial activity at the Wells Group projects will involve further geological and data review followed by targeting studies prior to on-ground work.