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Advance Metals Ltd (ASX:AVM) is boosting its precious metals portfolio with the acquisition of a high-grade gold project in the Australian state of Victoria and a high-grade silver project in Mexico.
The company has entered into a binding agreement with Serra Energy Metals Corp to take on an 80% interest (navigated through a joint venture) in the Myrtleford and Beaufort Gold
Projects in the Victorian Goldfields.
Advance is also preparing to acquire the Gavilanes Silver Project in Mexico through a binding agreement it is drawing up with Sailfish Royalty Corp.
Record gold prices have driven the company’s interest in Myrtleford and Beaufort, whose tenements are known to host hundreds of mineralised workings – including over 70 past-producing high-grade underground gold mines.
Many of the latter have experienced little modern exploration and the prospectivity of Myrtleford in particular is boosted by Serra’s discovery of a 13 km-long trend of significant gold mineralisation, Happy Valley Trend.
Additionally, Beaufort has been shown to have a 20km trend which has been historically mined for alluvial gold with an estimated historic production of 1.16Moz, according to Serra’s exploration.
Gavilanes has an existing Foreign Estimate of 22.4 million ounces of silver equivalent at 245.6 g/t AgEq, and is proximal to the San Dimas mine owned and operated by First Majestic Silver Corp.
It will add to Advance’s other Mexican silver play – the Yoquivo Project – which has a Foreign Estimate of 937Kt @ 570 g/t AgEq (2.1 g/t Au, 410 g/t Ag) for 17.23M oz AgEq.
AVM shares have risen on the news this morning, and at 10:23 AEDT, they were trading at four cents – a 17.65% rise since market open.
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