The Conversation (0)
Latin Resources Limited (ASX: LRS) (“Latin” or “the Company”) is pleased to advise that it 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.
HIGHLIGHTS
- The Company has exercised its option to secure 100% ownership over the Peep O’Day gold prospect where previous exploration has confirmed a high-grade gold structure over a strike extent of approximately 1.3km.
- Exploration completed at Peep O’Day by Latin has confirmed high-grade gold at surface with results from outcrop sampling including 9.79 g/t Au, 8.58 g/t Au, 8.41 g/t Au and 7.79 g/t Au.
- Drilling permit applications for first pass RC drill testing have been resubmitted following the change of ownership.
- The Company is currently in discussion with a number of third-party groups in relation to the divestment of the Peep O’Day and other non-core assets.
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 (Figure 1 and Figure 2). 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 Au1.
Figure 1: High-grade Peep O’Day gold prospect, NSW
Figure 2: Latin Resources Limited – Peep O’Day Prospect map showing recent surface sampling high-grade gold results1
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 (Figure 3).
PEEP O’DAY ACQUISITION DETAILS
Latin has secured 100% of the new tenement EL9412 which comprises the Peep O'Day prospect only ("Tenement") which is now registered in the name of Latin from Mining and Energy Group Pty Ltd (“MEG” or “Vendor”). The key terms of the acquisition are as follows:
- 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;
- A $15,0000 contribution by Latin towards the security deposit required by the Department for Regional NSW ("Department") is being refunded to Latin;
- The acquisition included all Mining Information in the possession of MEG in relation to the Peep O'Day prospect;
- 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;
- Latin has full and exclusive control and discretion in the exploration, prospecting, investigation, development and exploitation of the Tenement;
- 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;
- MEG no longer has any right or entitlement to any milestone payments or royalty payments in respect of the Peep O'Day prospect.
Figure 3: Latin Resources Limited – New Peep O’Day (EL9412) tenement location map
NSW LACHLAN FOLD BELT PROJECTS
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 (Figure 3).
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This article includes content from Latin Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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