Peninsula to acquire gold exploration package in Western Australia

12 December 2019 (Last Updated December 12th, 2019 11:50)

Peninsula Mines has signed a binding agreement to acquire complete interest in a 76km2 exploration package in Western Australia’s Southern Cross region.

Peninsula to acquire gold exploration package in Western Australia
Drilling of the gold exploration package is expected to follow in the first quarter of next year. Credit: István Mihály from Pixabay.

Peninsula Mines has signed a binding agreement to acquire complete interest in a 76km² exploration package in Western Australia’s Southern Cross region.

The tenement package extends over a 30km contiguous strike that covers gold-bearing structure in the Southern Cross region, a proven greenstone gold belt.

It is approximately 380km from Perth in the Yilgarn goldfields, south-east of the Southern Cross township.

Also known as the Southern Cross Greenstone Belt, the portfolio comprises 20 prospecting licences, one exploration licence and one exploration licence application with a combined area of around 76km².

The Greenstone Belt region has historically produced approximately 15Moz of gold, predominantly from the Marvel Loch and Southern Cross centres.

Peninsula Mines managing director Richard Henning said: “This is a tremendously exciting opportunity for our shareholders to capitalise on the significant upside that exists on this well-located suite of exploration assets.

“We are acquiring a ground package with the potential to host a large-scale gold system. A number of high-grade gold intersections, already demonstrated, are virtually untested by modern exploration techniques.

“With airborne geophysics planned for early in the New Year and a number of walk-up drill targets, we anticipate drilling to follow in Q1 2020.”

The company plans to raise $2m to fund the acquisition and exploration, including the first round of reverse circulation (RC) drilling priced at 0.13 cents a share.

The completion of the transaction is subject to the approval of shareholders and is expected to take place in mid-January next year.

Upon completion, the company name is proposed to change to Xantippe Resources.