- Sunshine Gold (SHN) has signed an option agreement to purchase the Ravenswood West Project in north-east Queensland
- In addition to a $10,000 option fee, the company will pay a further $400,000 to acquire the tenements
- Stavely, which owns the project through its subsidiary Ukalunda, will retain a one per cent net smelter royalty on the project
- The project has seen little drilling work over the last 40 years, but sits in close proximity to the prolific Ravenswood Mining Centre which has produced roughly four million ounces of gold to date
- Sunshine Gold is up 8.33 per cent to 6.5 cents per share
Sunshine Gold (SHN) has signed an option agreement to purchase the Ravenswood West Project in north-east Queensland.
Located within five kilometres of the prolific Ravenswood Mining Centre, which has produced roughly four million ounces of gold to date, the project covers 392 square kilometres and is considered highly prospective for intrusion-related and orogenic gold, porphyry gold-copper-molybdenum and rare earth elements.
Pursuant to the terms of the deal, Sunshine’s wholly owned subsidiary XXXX Gold has paid Ukalunda, a wholly owned subsidiary of Stavely which currently owns the Ravenswood West Project, a non-refundable option fee of $10,000.
XXXX Gold now has a 45-day period due diligence in which to exercise the option, after which a payment of $400,000 will be made to Ukalunda to acquire the four-tenement package.
Ukalunda will retain a one per cent net smelter royalty on the project, which XXXX Gold has the pre-emptive right to acquire.
Once complete, XXXX Gold will assume responsibility for existing obligations associated with the project, including Native Title, Aboriginal Heritage, replacement of security bonds and environmental rehabilitation.
“Ravenswood West ticks all of our acquisition drivers; near surface, historic goldfield, big system potential, under explored and close to infrastructure and mining hub workforces,” said Damien Keys, Managing Director of Sunshine Gold.
“With this acquisition we take a significant, under-explored landholding in a district that has produced over 20 [million ounces],” he added.
While the project has seen limited exploration drilling work over the last 40 years, Stavely has previously collected a number of geological mapping, geophysical and geochemical datasets, with rock chip, soil and stream sediment anomalisms pointing to the potential for a significant discovery.
Sunshine Gold is up 8.33 per cent to 6.5 cents per share at 1:47 pm AEDT.