- Metal Hawk (MHK) was up as much as 25 per cent today after being granted the Viking Gold Project in WA
- The tenement is subject to an earn-in agreement with CGM, a wholly owned subsidiary of ASX-listed Chalice Mining (CHN)
- Under the agreement, CGM has the right to earn a 51 per cent interest by spending $1 million over two years
- It can then increase its holding to 70 per cent by funding an additional $1.75 million over 30 months
- In the coming months, Chalice will undertake a 3000-metre reverse circulation drilling program at the Beaker 2 prospect to follow up on previous work which intersected up to 64g/t gold
- Metal Hawk is still up a healthy 25 per cent on the market and shares are trading at 22.5 cents
Metal Hawk (MHK) was up as much as 25 per cent today after being granted the Viking Gold Project.
The Viking Project covers 210 square kilometres and lies roughly 30 kilometres northeast of Norseman in the southern portion of the Albany-Fraser Province of Western Australia.
The tenement is subject to an earn-in agreement with CGM, a wholly owned subsidiary of Chalice Mining (CHN).
Under the agreement, CGM has the right to earn a 51 per cent interest by spending $1 million over two years.
Once the 51 per cent interest has been achieved, CGM can earn a further 19 per cent, for a total of 70 per cent, by funding an additional $1.75 million over 30 months.
In the coming months, Chalice have made plans for a 3000-metre reverse circulation drilling program at the Beaker 2 prospect.
Subject to government approvals, work is expected to begin in the June quarter.
The drilling will follow up shallow historical high-grade gold intercepts which returned a best result of six metres at 64g/t gold from 50 metres.
“We look forward to the commencement of exploration drilling on the Viking Project which presents as a very exciting high-grade gold discovery opportunity,” Managing Director Will Belbin said.
“We are delighted to have a partnership with the Chalice team and believe this project has potential to add significant value for Metal Hawk shareholders,” he added.
Metal Hawk is still up a healthy 25 per cent on the market and shares are trading at 22.5 cents at 1:44 pm AEDT.