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)
Stack of shiny gold bars with embossed details.

Metals Focus: Gold to Average US$3,210 in 2025 as Central Banks Buy and Trade Tensions Grow

Leading gold analysis firm Metals Focus published its annual flagship Gold Focus report on Thursday (June 5).

The report outlines the key trends influencing the gold market and price over the past year, noting that the metal experienced a remarkable run in 2024, driven by improving investor sentiment toward the yellow metal.

Throughout the year, the gold price surged at a blistering pace, starting 2024 at around the US$1,980 per ounce mark and reaching a peak of US$2,790 at the end of October. Since then, gold has continued to climb, setting repeated record highs since the start of 2025 — the most recent occurred on May 6, when gold reached US$3,437.

Keep reading...Show less
Marvel Gold Limited

Signing of Binding Share Purchase Agreement Tabakorole and Yanfolila, Mali

Marvel Gold Limited (ASX: MVL) (Marvel or the Company) is pleased to announce that it has entered into a binding Share Purchase Agreement (Agreement) with Anchises Capital LLC (Anchises) to sell its interests in the Tabakorole and Yanfolila Gold Projects in Mali via the sale of the issued capital of Marvel’s wholly owned subsidiaries, Marvel Gold Australia Pty Ltd, Sola Mining SARL and Yanfo SARL (Subsidiaries) that hold Marvel’s interests in the Tabakorole and Yanfolila Gold Projects (Transaction).

Keep reading...Show less
Asra Minerals Limited

Asra Strengthens Leadership & Technical Team to Drive Leonora Gold Strategy

Asra Minerals Limited (ASX: ASR; “Asra” or “the Company”) is pleased to announce key updates to its leadership and technical team. Effectively immediately, Mr Paul Stephen has been appointed Managing Director, and Mr Ziggy Lubieniecki has been engaged as a Geological Consultant to assist Asra Minerals’ exploration programs.

Keep reading...Show less
Harvest Gold President and CEO Rick Mark.

Harvest Gold CEO Outlines Strategic Play in Québec’s Gold-rich Abitibi Region

Harvest Gold (TSXV:HVG) President and CEO Rick Mark believes the company has a strong position in Québec's Abitibi greenstone belt, emphasizing the highly prospective Urban-Barry belt, "a very well-known mine-producing belt."

In an interview with the Investing News Network, Mark also honed in on Québec's supportive mining environment and accessible properties, which keep exploration costs "relatively very inexpensive."

“The exciting thing about the Urban-Barry belt is it contains a (gold) deposit called Windfall, which Gold Fields (NYSE:GFI) just bought from Osisko Mining,” Mark noted. “Now, the interesting thing about that as well is that the belt itself is basically owned by Gold Fields, except for the three large properties that Harvest Gold has in the belt.”

Keep reading...Show less
NevGold Adds More Significant Oxide Gold-Antimony Results: 7.04 g/t AuEq Over 15.2 Meters  Within 4.14 g/t AuEq Over 29.0 Meters , and Expands Gold-Antimony Mineralization Over 400 Meters Along Strike at the Limousine Butte Project, Nevada

NevGold Adds More Significant Oxide Gold-Antimony Results: 7.04 g/t AuEq Over 15.2 Meters Within 4.14 g/t AuEq Over 29.0 Meters , and Expands Gold-Antimony Mineralization Over 400 Meters Along Strike at the Limousine Butte Project, Nevada

Nevgold Corp. (" NevGold " or the " Company ") (TSXV:NAU) (OTCQX:NAUFF) (Frankfurt:5E50 ) is pleased to announce that it has discovered further significant oxide gold-antimony ("Antimony", "Sb") drill results at its Limousine Butte Project (the "Project", "Limo Butte") in Nevada. The Company continues to unlock the substantial gold-antimony potential of the Project, highlighting its promising prospects for further exploration and development in Nevada, one of the world's prolific mining jurisdictions.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Satellite orbiting Earth with visible solar panels and distant planetary horizon.

Satellite Imagery and Gold Exploration

Exploring for gold is a costly endeavor that often comes with great risks, especially for junior mining companies.

These small-scale companies are faced with the challenge of locating a metal that is extremely rare, and even if they do find it, they need to ensure gold is present in economically viable quantities.

That’s where the use of satellite imagery and remote sensing comes in. Using satellite systems scanning for gold helps explorers survey land without having to invest heavily in equipment or develop on-site infrastructure.

Keep reading...Show less

Latest Press Releases

Related News

×