- Gladiator Resources (GLA) exercises its option to acquire the Rutherglen gold project, subject to the renewal of the licence from the Victorian Government
- The project lies 30 kilometres west of Albury with historical gold production in the area estimated at about 1.4 million ounces
- Consideration for acquiring Rutherglen under the option agreement includes $50,000 cash, issuing of five million Gladiator shares and a deferred payment of $125,000 on defining a JORC mineral resource of 100,000 ounces of gold
- Shares in Gladiator are up 12.5 per cent and are trading at 2.7 cents
Gladiator Resources (GLA) has exercised its option to acquire the Rutherglen gold project in northern Victoria.
The company said the acquisition was subject to the regulatory renewal of the exploration licence (EL).
Rutherglen lies about 30 kilometres west of Albury and the EL covers an area of 368 square kilometres of the historical Chiltern and Rutherglen goldfields.
Gold production in the area up until 1920 has been estimated at about 1.4 million ounces, with minor amounts of gold produced since then from tailings retreatment and small-scale mining.
In September 2020, Gladiator unveiled an initial exploration target for Rutherglen of between 260,000 ounces and 529,000 ounces of gold from ore grading four to 7.9 gram per tonne.
Consideration for acquiring Rutherglen under the option agreement includes $50,000 cash and issuing of five million Gladiator shares to the vendor and a deferred payment of $125,000 on defining a JORC mineral resource of 100,000 ounces of gold.
“The company is preparing to commence drilling on this exciting gold opportunity once confirmation of the license renewal is received, with applications and approvals under way,” Chairman Ian Hastings said.
“Together with its uranium projects in Tanzania, the company believes it is now well placed to take advantage of the present commodity upswing.”
GLA shares were trading 12.5 per cent higher at 2.7 cents at 3:26 pm AEDT.