US-based Gold Mining has signed an agreement with Riverstone Resources to acquire a 24-acre mining tenement in Queensland, Australia.
Located near Eidsvold, the claim is on a property thought to be rich in alluvial minerals.
According to the company, Riverstone Resources mining tenement comprises about 300,000oz of gold and an extraction licence with DERM Permit number IPCE015389 for alluvial gold / sand and gravel over an adjoining 16,500 acres.
The sand and gravel operation at the tenement is expected to have a production life of more than 80 years with hundreds of millions of tonnes of continuous alluvial surface area available.
Gold Mining USA president Byrne said: "Our team of civil engineers has evaluated many valuable mineral and precious metal properties in Queensland over the past several months, which has led to the company’s decision to acquire Riverstone Resources.
"We plan to commence operations to extract gold in early 2015 and anticipate this project to be very profitable for the company and its shareholders."
Based on various geological reports, the area containing the resource has long been of interest as a potential source of alluvial mineralisation. This is due to the turn of the century and minor resources that have historically been exploited in the region, as indicated by the appearance of several mining leases.
Image: The mining tenement in Queensland, Australia. Photo: courtesy of Gold Mining USA, Inc.