Twenty Seven Co Ltd (ASX:TSC) (FRA:U9V) has signed a binding terms sheet with Revolution Mining Pty Ltd for the acquisition of two additional exploration licences adjoining the Yarbu Gold Project in the highly prospective Marda-Diemals greenstone belt in Western Australia.
The additional licences E77/2539 and E77/2540, adjacent to Ramelius Resources Limited's (ASX:RMS) (OTCMKTS:RMLRF) Marda Gold Project, almost double the Yarbu project to 233 square kilometres and increase TSC’s strike length along the Clampton Fault from 5 kilometres to 22 kilometres.
There is clear evidence the Clampton Fault is prospective for Archean shear-hosted gold deposits, as the historical Clampton Mine is south of Yarbu.
The Yarbu Gold Project is around 80 kilometres northwest of TSC’s Mt Dimer mining lease and is proximal to Marda, which contains a JORC 2012-compliant resource of 280,000 ounces in nine separate deposits.
“Exciting new acquisition”
TSC chief executive officer Ian Warland said: “This exciting new acquisition nearly doubles the size of TSC’s Yarbu Gold Project in WA’s Goldfields.
“Importantly, the new ground extends TSC’s strike extent along the highly prospective Clampton Fault from 5 kilometres to 22 kilometres.
“This is an exciting development as the Clampton Fault is associated with significant gold mineralisation along strike from the Yarbu Gold Project, which is largely under-explored.
“Moving forward, TSC is excited about developing the enlarged Yarbu Gold Project, with initial programs to investigate historical gold anomalies and exploring untested portions of the Clampton Fault.”
Limited historical drilling
Only very limited historical drilling has been completed within the founding Yarbu Gold Project and none recorded in the newly acquired tenements.
Additionally, a review of historical exploration data highlighted the Andromeda Gold Prospect is within 500 metres of E77/2442 – TSC’s founding Yarbu Gold Project tenement.
Historical RC drill intersections at Andromeda by Southern Cross Goldfields show 16 metres at 3.09 g/t gold and 21 metres at 1.51 g/t gold, confirming that ‘significant’ mineralisation is present in the immediate area.
A data review over the newly acquired ground is continuing and pending successful due diligence and execution of a Sale Purchase Agreement (SPA), field programs across the expanded Yarbu Gold Project will begin in early 2021.
Following the execution of an SPA, at completion the acquisition consideration will comprise an initial consideration that TSC will issue to Revolution Mining (or its nominee) $40,000 worth of TSC fully paid ordinary shares.
A milestone consideration will follow entailing - within seven days of the announcement by TSC of a JORC-compliant inferred resource of at least 50,000 ounces of gold from within the tenements, TSC will pay consideration of:
- (i) $250,000; and
- (ii) $5 for every ounce over 50,000 announced in the JORC announcement (up to a maximum of 100,000 ounces).
The parties have agreed each use respective reasonable commercial endeavours to negotiate and execute the SPA within 30 days following the date of the Binding Terms Sheet.
- Completion of data compilation, due diligence, and SPA over new tenements E77/2539 and E77/2540; and
- Planning and approvals for exploration at Yarbu Gold Project, commencement of on ground geochemistry and mapping in preparation for drill testing.