Delecta Going for Gold at New U.S. Acquisition

An Australian company, until recently known more for its wholesale distribution of adult toys than mining exploration, has made a significant step into gold. Delecta Ltd (ASX: DLC) announced this morning that it has completed an Option to Purchase agreement and acquired a mining lease for the Speedway Gold Project in Tooele County, Utah, U.S., through its subsidiary Speedway Gold Inc.

The Speedway Gold Project is considered a highly prospective land package located only 40km from the 2.3-million-ounce Long Canyon gold mine in eastern Nevada, which is owned by Newmont Corp. Through the acquisition, Delecta will target carbonate-sediment hosted gold deposits, which are geologically similar to those found at nearby Long Canyon.

Malcolm Day, managing director of Delecta, is sanguine about the prospects for the new acquisition.  “This transaction delivers compelling benefits to our shareholders; a low entry cost gold project with exploration upside that has the potential to meet our strategic goals of identifying a multi-million-ounce gold deposit,” he says.

However, the Speedway Gold Project is not the company’s only mining venture. In 2019, it acquired the Highline Cobalt-Copper Project in Goodsprings, Nevada, U.S., with a view to diversifying its operations and capitalizing on the demand for battery minerals. 

Shortly, further exploration work will commence at the Speedway Gold site, consisting of mapping and soil sampling. By Q2 2021, the company aims to be in a position to begin testing drill targets.

The news has been met with excitement from investors. As of lunchtime on Wednesday 20 January, Delecta’s share price was up 28.57% to 0.009 cents.

Click here for the full announcement