- Blaze International (BLZ) has entered an option agreement to purchase three exploration licences in Western Australia
- The exploration licences cover 147 square kilometres and are located south of Mt Magnet
- The project made up of the licences is currently owned by Eastern Goldfields Exploration (EGE), which has been exploring the area for years
- To cover the option agreement, Blaze is required to pay a $20,000 option fee and spend a minimum of $100,000 within nine months
- To earn ownership of the projects, Blaze will pay a further $1 million and the issue of 7.5 million shares to the vendor
- Drilling at the new tenements is expected to commence in the December quarter
- Blaze is down 8.11 per cent on the market this morning and is trading for 3.4 cents per share
Blaze International (BLZ) has entered into an option agreement to purchase three exploration licences in Western Australia.
The exploration licences cover 147 square kilometres and are located south of Mt Magnet and north of its existing Kirkalocka tenement holding, which covers a large portion of the Meekatharra-Wydgee Greenstone Belt.
Eastern Goldfields Exploration (EGE) currently owns the project which makes up the licences and has been exploring the area for a number of years.
To cover the option agreement, Blaze is required to pay a $20,000 option fee and spend a minimum of $100,000 within nine months, once all required approvals are granted.
Following this, Blaze will need to pay a further $1 million and issue 7.5 million shares to the vendor for 100 per cent ownership of the project. Additionally, a two per cent net smelter return applies for any metals produced.
Blaze has completed some geological mapping and interpretation over the project and “identified a major creek system cutting through the target areas and coinciding with the interpreted magnetic breaks and anomalous soil results.”
A program of works (POW) has been lodged over these portions of the target zone and an additional POW will be lodged to cover additional targets within E58/524. Approvals are expected next month.
The company is also in talks with drilling contractors to commence work as soon as the final POW has been approved. Drilling is expected to commence in the December quarter.
Blaze is down 8.11 per cent on the market this morning and is trading for 3.4 cents per share at 11:37 am AEST.