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Latitude Consolidated (ASX:LCD) signs option agreement for Skye Gold Project

Mining
ASX:LCD
23 June 2020 05:00 (AEST)

Latitude Consolidated (LCD) has inked an option agreement to acquire the Skye Gold Project in the Gawler Craton in South Australia.

The prospective project lies within the vicinity of Marmota’s Aurora Tank Gold Project and the Challenger Gold Mine.

Latitude is hoping that several prospects with near-surface mineralisation identified at Skye will host similar high-grade plunging gold shoots.

Under the terms of the option agreement, Latitude will pay Resource Holdings an initial $25,000 and will then have one month to complete due diligence and decide if it wishes to exercise the option.

Chairman Tim Moore described the project as offering Latitude a low-cost entry point into the region.

“The Gawler Craton hosts a number of large‐scale gold systems, many of which are close to the Skye Gold Project. Initial reviews completed by our geologists suggest the potential for some geological consistencies between Skye Gold and the nearby high‐ quality Aurora Tank and Gold Bore projects, which is highly encouraging,” Tim stated.

“We are already putting in place plans to commence exploration at the Skye Gold Project in the third quarter, pending the completion of due diligence and receipt of relevant approvals,” he explained.

Additionally, the company has begun initial reconnaissance works at its Circle Valley project, south of Norseman in Western Australia and flagged that it will continue to assess further exploration projects.

“Latitude remains committed to reviewing additional project acquisition opportunities, both domestically and overseas, having maintained the financial flexibility to move quickly should a compelling opportunity be presented to the Board,” added Mr Moore.

The company’s share price rose 29.4 per cent today to close at 2.2 cents per share.

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