Minotaur Exploration Ltd (ASX:MEP) has signed a binding terms sheet with Avira Resources Ltd (ASX:AVW) to acquire the Pyramid tenement group, 180 kilometres south of Townsville in northern Queensland.
The project consists of two main gold prospective areas –West Pyramid range and East Pyramid range- covering an area of 150 square kilometres.
Avira executive director David Deloub said: “The company considered a number of expressions of interest and determined that the proposal presented by Minotaur delivered the best outcome for its shareholders.
“We look forward to working with Minotaur to complete the sale and purchase of the Pyramid project.”
Potential to offer short-term rewards
Minotaur considers the West Pyramid area to have the potential to offer short-term rewards, based on historical high-grade drill intersects such as 35 metres at 6.1 g/t gold and 15 metres at 5.65 g/t gold.
The Gettysberg prospect is of keen interest to the company, where drilling outlined substantial gold mineralisation along over 500 metres of strike.
Minotaur believes the East Pyramid Range, which is relatively less explored with only nine holes drilled in more than 20 years, has potential for Intrusion Related Gold Systems (IRGS).
The company thinks IRGS in the East Pyramid Range could be similar to other well-known gold deposits in the district such as Mount Leyshon having 3.5 million ounces and Mount Wright having over one million ounces.