Intermin Resources has signed a binding agreement with Echo Resources to acquire a 100% interest in the Anthill Gold Project, 54km north-west of Kalgoorlie-Boulder in Western Australia (WA).
The gold project is within the significant Zuleika Shear zone and along strike from high-grade gold camps, including Bullant, Broads Dam, Kundana and Frogs Legs.
The project has one granted mining lease (M16/531) and one miscellaneous licence for haulage (L16/92) covering an area of 700ha.
Intermin managing director Jon Price said that this acquisition follows the company’s strategy to consolidate assets on major geological structures where minimal modern exploration was conducted.
Price said: “The project is a fantastic addition to our portfolio and lies within multi-million ounce gold camps on the Zuleika and Carnage shear zones where recent new discoveries have been made by the major producers in close proximity.
“Anthill had limited drilling with excellent results and we look forward to reviewing the data and commencing further drilling in this very exciting part of the WA goldfields.”
In 2011, Echo Resources subsidiary Metaliko Resources reported that Anthill hosts 5,186,000t at 1.0g/t Au for 160,000oz of gold at a 0.5g/t cut-off.
According to the deal, Intermin has paid $25,000 in cash during the signing of the formal agreement and will pay a further $25,000 in cash upon completion.
Under this acquisition, Intermin is also required to pay Echo $250,000 in cash before 30 June, and a royalty of $5/oz for the first 100,000oz mined from the project.
Intermin also has plans to perform an extensive assessment of the database and all geological information available about the Anthill Gold Project.
It also intends to conduct a drilling campaign to confirm the quoted resource to JORC (2012) standard and evaluate the testing extensions to mineralisation along strike, at depth and on parallel structures.
Intermin Resources focuses on the rich gold deposit areas of Kalgoorlie and Menzies in Western Australia. The flagship properties of the company are the fully owned Menzies and Teal projects.
Image: Location of Anthill Gold Project. Photo: courtesy of Intermin Resources.