Augustus Minerals Ltd (ASX:AUG) is acquiring a gold project in Western Australia stretching over 1,345 square kilometres in a territory ripe for exploration and proximal to several functioning mines.
The company has executed a share purchase agreement to take on the capital of Music Well Gold Mines Pty, holder of the Music Well Gold Project – which is along the Leoonora-Laverton Greenstone Belt, 35 kilometres north of Leonora.
The territory surrounding it boasts more than 12 million ounces of gold, with more than 450,000 ounces being produced per year within 50 kilometres of the project.
This includes Northern Star’s Thunderbox and Wonder Underground mines, Genesis Minerals’ Hub project, and Vault Minerals’ Darlot and King of the Hills mines.
General manager of exploration Andrew Ford said the acquisition was a boon to Augustus, which was also hoping to begin exploration to build on the geophysics, gravity, soil sampling, and rock chipping already carried out.
“The acquisition of such a large prospective gold exploration package in close proximity to
operating mines owned by Northern Star, Genesis, and Vault Minerals with +12M oz of
resources and over 450kozpa gold production2 is a significant coup for Augustus,” he said.
“With the gold price now exceeding A$4,000/oz it provides Augustus shareholders with
significant exposure to future discovery in one of the greatest gold provinces in the world.”
Augustus shares shifted upwards on the news, and at 13:31 AEDT, they were trading at 4.9 cents – a rise of 8.89% since the market opened.
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