Latin Resources Limited (ASX: LRS) has exercised its option to secure 100% ownership of the high-grade gold Peep O’Day prospect in the southern Lachlan Fold Belt in New South Wales.
Peep O’Day Project
Following the completion of extensive regional exploration including reprocessing and interpretation of the available airborne geophysical data, on-ground reconnaissance mapping, outcrop sampling and systematic soil sampling; the company has exercised its right to acquire the southern portion of the original Yarara Tenement (EL8958).
Results from this work highlighted the Peep O’Day prospect located in the southern portion of the original tenement as the most prospective area, returning high-grade gold in outcrop over a strike length of 1.3 kilometres.
High-grade gold results from extensive rock-chip sampling included: 9.79g/t, 8.58g/t Au, 8.41 g/t Au and 7.79 g/t Au.
Exploration over the northern portion of the original Yarara Tenement (EL8958) did not return any anomalous results from the extensive mapping, outcrop sampling or systematic soil sampling completed by the company and as such this area has been returned to the Vendor, with the Company securing a new 100% owned tenement (EL9412), covering only the prospective Peep O’Day prospect area.
Peep O’Day Acquisition Details
Latin has secured 100% of the new tenement EL9412 which comprises the Peep O’Day prospect only which is now registered in the name of Latin from Mining and Energy Group Pty Ltd (MEG).
The key terms of the acquisition are as follows:
1. The Purchase Price payable by Latin to MEG was 6 million fully paid shares in LRS to be issued upon the grant of the Tenement to Latin which has now occurred;
2. A $15,0000 contribution by Latin towards the security deposit required by the Department for Regional NSW (“Department”) is being refunded to Latin;
3. The acquisition included all Mining Information in the possession of MEG in relation to the Peep O’Day prospect;
4. The acquisition was subject to the approval of the Department which has been obtained and Latin has full rights to explore, prospect, sample and drill for all minerals on the Tenement;
5. Latin has full and exclusive control and discretion in the exploration, prospecting, investigation, development and exploitation of the Tenement;
6. The balance of EL8958, that is after the carve out of EL9412 in respect of the Peep O’Day prospect, has been returned to MEG with no further obligations in relation to EL8958;
7. MEG no longer has any right or entitlement to any milestone payments or royalty payments in respect of the Peep O’Day prospect.
Lachlan Fold Belt
The company’s portfolio of NSW projects comprises five separate granted, 100% owned tenements covering a total of approximately 751 square kilometres in the central and southern Lachlan Fold Belt, which are highly prospective for copper-gold and Ni-Cu-PGE mineralisation.
Work completed by the Company and previous explorers has highlighted multiple priority target areas, several of which are at a drill ready status, including: • The Peep O’Day Gold Prospect; • The Mackey’s Copper Prospect; • The Gosper Mine Copper Prospect; and • The Dairy Hill Copper (Porphyry) Prospect.
The company has adopted a divestment strategy for these non-core project, while it focusesits efforts on progressing two core projects: the high-grade hard-rock lithium Salinas Project in Brazil toward a maiden JORC Resource by the end of the year; and the high-purity Cloud Nine Halloysite-Kaolin Project in Merredin, WA.
The company is currently in discussion with several third-party groups in relation to the potential divestment of the non-core NSW Lachlan Projects. For further information please visit: https://www.latinresources.com.au/
