Labyrinth Resources

Option to Acquire Residual 49% of Comet Vale and Acquisition of Vivien Gold Project

Labyrinth Resources Limited (‘LRL’) is pleased to announce that LRL set to acquire Vivien Project and 100% of Comet Vale.
  • Labyrinth Resources Limited (“Labyrinth” or “the Company”) has signed:
    • a binding option agreement with Sand Queen Gold Mines Pty Ltd (“Sand Queen”) whereby Labyrinth has been granted a 12-month option (commencing on completion of the Distilled Acquisition) to acquire Sand Queen’s 49% interest in Comet Vale for $3m in cash (“Comet Vale Option”); and
    • a binding share sale agreement to acquire 100% of Distilled Analytics Pty Ltd (“Distilled”) which owns the Vivien Gold Project (“Vivien”) located 6km from the Agnew Gold Mine (“Distilled Acquisition”), together, (“the Transactions”).
  • The Transactions are consistent with the Company’s strategy to consolidate and grow underexplored high grade gold mines across the Menzies, Leonora and Leinster corridor that are close to infrastructure.
  • Exercise of the Comet Vale Option will allow the Company to increase its existing controlling interest in Comet Vale from 51% to 100%.
  • The Company’s Comet Vale gold project (on granted mining leases) is located 32km south of Menzies next to the Goldfields highway. The Company released an updated Mineral Resource of 96koz at 4.8g/t Au (100% basis) on 11 April 2023.1
  • Vivien, previously owned and operated by Ramelius Resources Limited (ASX: RMS) (“Ramelius”), will provide Labyrinth a near-term opportunity to define a JORC mineral resource across the Vivien Main Pit and Vivien Gem Prospect from the existing project drill database.
  • The Vendors of Distilled amongst others include Alex Hewlett and Kelvin Flynn. Alex and Kelvin have a strong track record, with one or both being involved in driving value creation at Red Dirt Metals Limited (now Delta Lithium), Spectrum Metals Limited, Mineral Resources Limited, Silver Lake Resources Limited and Wildcat Resources Limited.
    • Following completion of the Transactions and Equity Raising at full participation, Mr Hewlett and Mr Flynn are expected to emerge with voting power in Labyrinth of approximately 12.3% and 10.2% respectively.
  • Firm commitments received via a two tranche placement to raise $2.0 million in support of the Transactions and to fund high priority work programs.
  • Existing Labyrinth shareholders will have the opportunity to participate in a 1-for-1.9813 non-renounceable Entitlement Offer raising up to an additional ~$2.0m. § The proceeds of the two tranche placement (“Placement”) and entitlement offer (“Entitlement Offer”) (together, the “Equity Raising”) will be used to advance exploration at both Comet Vale and Vivien with the aim of growing a significant and high-grade resource inventory.
  • Following completion of the Transactions and Equity Raising at full participation, Labyrinth will emerge with a pro-forma undiluted market capitalisation of ~$13.7m and pro-forma cash holdings of approximately $4.0m (before transaction costs and the exercise of the Comet Vale Option).
  • Post the Transactions, the Company will re-assess strategic options (including a potential sale) for its 100% owned Labyrinth Project in Canada which currently contains a JORC compliant resource of 3Mt @ 5g/t Au for 500koz2. This will include leveraging the geological skill set of the Company to further evaluate the prospectivity of the deposit at depth and along strike.
  • The Company has obtained in-principle confirmation from the ASX that Listing Rules 11.1.2 and 11.1.3 do not apply to the Transactions.

Overview

The Comet Vale Option and Distilled Acquisition align with the Company’s strategy to consolidate and grow underexplored high grade gold mines across the Menzies, Leonora and Leinster corridor that are close to infrastructure.

Figure 2: Regional location of Vivien.

Historical underground production from the Vivien leases between 1902 and 1911 totalled 76,000oz at an average grade of 12.4 g/t Au. The Vivien open pit was mined between 1997 and 1998 and produced 410,000 tonnes at 2.70 g/t Au for 35,600oz.3

Ramelius ceased mining at Vivien in early 2023, with the last ore load coming to surface on 11 January 2023. Gold production for Vivien over the period of Ramelius’ operatorship (2015-2023) was 1.5Mt at 5.68g/t Au for 260koz4 processed through its Mt Magnet Mill situated 296km west of Vivien. Vivien was acquired by Ramelius in 2013 from Gold Fields at a cost of $10 million and, over its life, generated net cash flows of $130 million for Ramelius.5

Vivien comprises five Mining Licences (M36/111, M36/292, M36/34, M36/61 and M36/64) and one Prospecting Licence (P36/1890) with an area of 20.4km².

The wider Vivien project provides a commercially compelling brownfield gold exploration opportunity with six (6) priority drill targets based on historical gold intercepts that were not prioritised by Ramelius as part of its mining focussed activities at Vivien.

Vivien provides Labyrinth a near-term opportunity to define a JORC mineral resource across the Vivien Main Pit and Vivien Gem Prospect from the existing project drill database. There are also five (5) separate gold processing mills within 100km of Vivien that potentially provide a lower commercial threshold to profitable gold production.


Click here for the full ASX Release

This article includes content from Labyrinth Resources, 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.

LRL:AU
The Conversation (0)
Blackrock Silver Receives 4.24 Million Dollars from Warrant Exercises and Upsizes Eastern Resource Expansion Drill Program at Tonopah West

Blackrock Silver Receives 4.24 Million Dollars from Warrant Exercises and Upsizes Eastern Resource Expansion Drill Program at Tonopah West

Blackrock Silver Corp. (TSXV: BRC,OTC:BKRRF) (OTCQX: BKRRF) (FSE: AHZ0) ("Blackrock" or the "Company") is pleased to announce the receipt of an aggregate total of C$ $4,244,838.89 in cash proceeds from the exercise of 9,830,880 previously issued common share purchase warrants of the Company ("Warrants") since July 8, 2025.

After including the common shares ("Common Shares") of the Company issued as a result of such Warrant exercises, there are a total of 325,490,026 Common Shares issued and outstanding as of the date hereof.

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Kairos Minerals

Further wide intercepts from Main Hill support gold resource growth at Mt York, WA

Wide and high-grade results from Main Hill drilling point to resource growth; additional drilling extending ‘Monster Zone’ now completed with results awaited

Kairos Minerals Ltd (ASX:KAI) (“KAI” or the “Company”) is pleased to announce results from a further nine diamond holes at its Mt York Gold Project in WA’s Pilbara, where current resources at the Main Trend sit at 1.4Moz Au. Drill results are from Main Hill (five holes), Breccia Hill (one hole) and Pebble Mound (three holes) Table 1) and are shown on the Leapfrog oblique-section (Figure 1), drill plan (Figure 2), long-section (Figure 3) and cross-sections (Figures 4 and 5).Latest results are from drilling at Mt York’s Main Hill, which remains a very large resource target for the Company.

Keep reading...Show less
Stack of gold coins with a buffalo design on a wooden surface.

Ken Hoffman: Gold's Path is Clear, Price to Hit US$10,000 Long Term

Ken Hoffman of Red Cloud Securities shares his gold price target of US$10,000 per ounce.

In his view, the US dollar is set to decline to its lowest level in the last 20 years. Given its usual relationship with gold, that could send the price to US$7,000, and from there it could overshoot.

Keep reading...Show less
Asra Minerals Managing Director Paul Stephen.

Asra Minerals’ Recent Assays Confirm “Economic and Mineable” Mineralisation, Exec Says

Asra Minerals’ (ASX:ASR) recent drill results from its Leonora South gold project in Western Australia have confirmed “economic mineralisation” comparable to operating, high-grade gold mines in the region, said Paul Stephen, the company’s managing director.

“The challenge for the Kookynie area … is it's been mined since 1880 — generally very high grade, but generally narrow veins. And our recent intersection of 14 metre widths, very shallow, 10 metres from surface, is really reflective of our aim to change that narrative, so that we're actually chasing more economic and more mineable mineralisation,” Stephen said.

He added that the results compare favourably with high-grade historic mines in the region, like Cosmopolitan, which closed down in 1922, and current operating mines like Genesis Minerals' (ASX:GMD) Leonora operations.

Keep reading...Show less

Latest Press Releases

Related News

×