- OZZ Resources (OZZ) expands its footprint in the highly prospective Leonora district of Western Australia after acquiring the historic high-grade Linger and Die Goldfield
- The WA gold explorer has bought four tenements with the potential to host high-grade gold mineralisation
- The acquisition is an outright asset purchase with the consideration comprising cash, shares and a royalty
- Exploration activities are expected to commence soon
- On market close, OZZ is up 6.98 per cent and trading at 9.2 cents per share
OZZ Resources (OZZ) has expanded its footprint in the highly prospective Leonora district of Western Australia after acquiring a historic high-grade goldfield.
The Linger and Die Goldfield, also known as Dodgers Well, is a collection of 15 defined historical prospects covering an area extending over one kilometre east-west and two kilometres north-south.
The gold explorer has purchased four tenements that have potential to host high-grade gold mineralisation as historical mining has delivered grades of one to two ounces per tonne.
Current drill testing has been largely shallow and patchy in a structurally complex area, providing significant potential for new discoveries.
A historical intercept of nine metres at 17.04 grams of gold per tonne (g/t Au) from 76 to 85 metres indicates the area’s untested potential.
There is potential for toll treatment of high-grade mineralisation at nearby Leonora processing plants.
To acquisition is a cash, share deal and royalty deal, which will see OZZ pay $100,000 cash, issuing 960 thousand ordinary shares and a royalty equal to one per cent of the gross revenues received by OZZ from mining any ores from the tenements.
OZZ Managing Director Jonathan Lea said the Linger and Die Goldfield is a fantastic addition to the company’s Leonora portfolio, and exploration activities will commence soon.
“Given the historic production, which saw grades typically exceeding an ounce to the tonne, this acquisition provides scope for the definition of high-grade resources that could be toll-treated at nearby plants or form the basis of a standalone operation in conjunction with the adjacent and highly prospective Pinnacle Well and Mt Davis Projects,” he said.
“With existing understanding of the geological controls on mineralisation being limited, and with only patchy and typically shallow drilling completed to date, there are multiple, high-potential targets to be drill tested in 2022 and beyond.”
On market close for the week, OZZ was up 6.98 per cent and trading at 9.2 cents per share.