Exercises Option To Acquire High-Grade Gold Project
Rumble Resources Limited (ASX: RTR) has provided formal notice to Mt Magnet Gold Pty Ltd that it has elected to exercise the option to acquire 100% of the right, title and interest in the Western Queen Gold Project (M59/45 and M59/208), located 110km NW of Mt Magnet within the Yalgoo mineral field of Western Australia.
The company entered into an option agreement to acquire 100% of the Project on August 1, 2019 and on April 14, 2020 it elected to extend its Option to February 2, 2021. Rumble has now provided early notice to Ramelius that it has elected to proceed with exercising the Option to acquire 100% of the Project.
Rumble and Ramelius will now complete the conditions subsequent to finalise the acquisition of the Project. Rumble has elected to satisfy all of the A$1,000,000 Project consideration by the issue of shares in the Company. The quantum of shares is to be calculated on a 30-day VWAP prior to Completion and will be issued utilising Rumble’s ASX Listing Rule 7.1 placement capacity.
The Western Queen Gold Project comprises of two mining leases M59/45 and M59/208 (Rumble has now exercised the option to acquire 100% of those tenements from Ramelius Resources) and two exploration tenements E20/0967 and E59/2443 which are held 100% by the Company.
The Project is located within a 110km radius of three operating gold processing mills. The closest mill is the Dalgaranga Mill (48km) which has a capacity of 2.5 Mtpa. The Checkers Mill (Mt Magnet) has a capacity of 1.9 Mtpa and the Tuckabianna Mill has a capacity of 1.2 Mtpa.
An updated mineral resource (was completed in January 2018. Rumble has reviewed and verified the indicated and inferred resource, and the company estimates that the remaining resources beneath both mined deposits are of 962,000t @ 3.9 g/t Au for 120,000oz.
Rumble recently commenced a multi-rig drill programme comprising of a minimum 12,000m of diamond and reverse circulation (RC) drilling, focussing on multiple high-grade gold shoot targets and potential resource extension down- plunge of the Western Queen Central deposit.
