NickelX Limited (ASX: NKL) has entered into a binding tenement sale agreement to acquire 100% of tenement E57/1045 known as the Penny South Gold Project.
Commenting on the acquisition managing director Peter Woods said: “We are extremely pleased to have reached an agreement for the acquisition of the Penny South Project. The addition of this exciting gold exploration asset next door to one of the highest-grade gold mines in production in Western Australia, and in a district seeing current M&A activity, greatly enhances our existing portfolio.”
The Binding Tenement Sale Agreement aims to acquire 100% of the Penny South Gold Project (E57/1045) to enhance the West Australian Gold exploration portfolio. The Penny South Gold Project is situated in a world-class gold district, approximately 550m south of one of Australia’s highest-grade producing gold mines, the Penny West/North Gold Mine, which is owned and operated by Ramelius Resources Limited (ASX: RMS).
The Penny West mine produced 154,000t at 18gpt of gold (89,000oz of gold) in the early 1990s. The initial Penny North deposit, consisting of 569,000t at 16.8gpt (306,000oz), was discovered by Spectrum Metals Limited. This deposit was subsequently subject to a takeover by Ramelius for over A$200M during 2020, and it is now being mined and extended.
The Penny West Shear, which hosts the Penny deposits, extends south into the Penny South Project (E57/1045), with approximately 2.5km of strike contained within E57/1045. The average historical drill hole depth across E57/1045 is around 42m, with only 18 holes deeper than 100m and seven holes deeper than 200m, and no diamond drilling has been conducted.
Historic drilling within E57/1045 has encountered various significantly anomalous intersections of gold mineralization. A review of all available data is currently underway to generate high-priority drill targets.
Given the minimal deeper drilling and lack of diamond drilling, it is the company’s view there may be substantial value to be unlocked at depth and we are eager to execute a path forward to test the theory as the momentum for gold continues.” Added Peter.
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