Pilbara Minerals subsidiaries are set to acquire six prospecting licenses and an overlying mining license application from Kairos Minerals for $20 million.
Kairos will retain the mining lease application that hosts the main trend of the Mt York Gold Project in Western Australia. The tenure being sold to Pilgangoora Operations and Ngungaju Lithium Operations contains a gold resource of 0.23Moz in two small satellite gold deposits that are non-core to the Mt York Gold Project.
Kairos and Pilbara Minerals each have the right to require the parties to negotiate a mineral rights agreement for all mineral rights (except lithium and tantalum) over 367km2 of neighbouring exploration tenements and applications.
Once an agreement is in place regarding the neighbouring exploration tenements and applications, Kairos said it will target this additional main trend strike extension as part of a minimum 5,000m RC and diamond drill programme. The programme will aim to identify higher-grade, near-surface mineralisation to drive resource growth.
Kairos’ Managing Director, Dr Peter Turner, said the $20 million sale to Pilbara Minerals will create significant value for the company’s shareholders.
“The tenure being sold represents a small and non-core part of our Mt York Gold Project, meaning we will retain the 1.38Moz main trend resource which underpins the Mt York Gold Project and have access to a further 1.4km of the continuous main trend mineralisation into the Pilbara ground that we know is well-mineralised.
“In the process, we intend to obtain access to all mineral rights (except lithium and tantalum) to a 367km2 prospective land package with known gold occurrences. This area has untested exploration potential which we will be targeting for accelerated resource growth as part of the upcoming drilling program.”
Kairos’ Chairman, Zane Lewis, said the company intends to allocate a portion of the $20m to systematically grow the Mt York gold resource and complete required development studies.
“By proposing to secure mineral rights to an additional 367km2 of highly prospective ground that has seen minimal modern-day exploration, located adjacent to the existing Mt York resource, we are positioning Kairos as a key player in the area, driving our business towards a development scenario with significant blue sky upside.”
Featured image: Edward Haylan/shutterstock.com
