E2 Metals Limited (ASX:E2M) has acquired a 100% interest in the advanced Pingüino silver gold project in Argentina from Austral Gold Limited.
Highlights
• 100% acquisition of one of the largest undeveloped silver gold resources in Santa Cruz, strategically located 15km north of E2’s flagship Conserrat project
• Consolidation of two adjacent silver gold districts to provide accelerated pathway to critical mass and further resource development
• Indicated and inferred resources1 (NI 43-101 foreign estimate) as of September 2014:
o 51Moz at 90gpt AgEq2 (32Moz Ag and 219koz Au) at 20gpt Ag cut off
o 31Moz at 201gpt AgEq2 (21Moz Ag and 132koz Au) at 70gpt Ag cut off
Significant potential to upgrade resource through resource expansion and new vein discoveries
• Upfront payment of US$2.5m funded from existing cash reserves
• Regional consolidation to be complemented by E2’s upcoming maiden Mineral Resource Estimate (MRE) at Conserrat expected in Q1 2023, after closing transaction
“This is a transformational acquisition for E2 and the Pingüino project, consolidating two large silver and gold vein districts under one company, forming an emerging pure play silver company on the ASX,” Chairman Peter Mullens said.
“The acquisition has strong rationale for both parties and is expected to provide E2 an accelerated pathway to critical mass and resource development, while Austral retains 19.9% participation in the consolidated portfolio, leaving Austral to focus on its core mining operations in Chile and Argentina, and its interest in the United States (Nevada and Utah).”
Managing Director Todd Williams said the transaction is a watershed moment for E2 and has been many months in the making.
“The consolidation of Pingüino and Conserrat creates a single company with the largest undeveloped silver resource in Santa Cruz, new and evolving high-grade discoveries with a commanding landholding by a junior in the prolific Cerro Vanguardia district.
“Shortly after closing the transaction, E2 intends to publish an updated mineral resource estimate for Pingüino in accordance with JORC and define plans for resource expansion and vein discoveries. The company remains in a strong financial position and will fund the upfront cash payment from the company’s current cash reserves.”
For further information please visit: https://e2metals.com.au/
