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Avenira (ASX:AEV) unlocks the true potential of Jundee South Gold Project

Summary

  • Avenira owns and operates a gold project in the prolific Yandal Greenstone Belt of Western Australia.
  • The recent drilling campaign on the tenure has revealed the presence of two gold trends on the project.
  • The Company increased its footprint in the region by acquiring two new Prospecting Licences, lying in the close vicinity of its flagship Jundee South Gold Project.
  • Avenira traded at AU$0.008 a share on 24 June 2021, gaining 33.33% against the previous close.

ASX-listed junior gold explorer Avenira Limited (ASX:AEV) owns and operates Jundee South Gold Project in the prolific Yandal Greenstone Belt of Western Australia. The Yandal Greenstone Belt of the Archaean Craton holds the reputation of hosting multi-million gold projects in WA. The Jundee South Project is spread over a 720km2 area and lies in the close vicinity of some of the prominent active gold mines, including Jundee Mine (10Moz), Bronzewing (4Moz), and Darlot deposit (3.5Moz).

Jundee South – The new golden ace in the making

According to the Chambers of Mine and Energy of Western Australia, the country holds the world’s largest reserves of gold. It estimates the reserves up to 9,500 tonnes, which is roughly 17% of the total known gold reserves. Geoscience Australia estimates show that only WA holds 60% of the total gold reserves of the country.

Western Australia is home to some of the largest gold mines in the world. Out of 66 operating gold mines in Australia, 14 are among the largest in the world and 11 of these are located in Western Australia.

There are currently 66 gold mines operating in Australia, including 14 of the world’s largest, 11 of which are in Western Australia. So, when it comes to gold, WA is the go-to location, not just in Australia but all across the globe.

Latest update: Avenira (ASX:AEV) with new licences and A$3M loan ends March quarter in high spirits

Avenira beefs up the tenure size

Avenira during the last quarter announced the acquisition of two Prospecting Licences - P53/1712 and P53/1713. The newly acquired licences lie in the south of the existing tenure and along the magnetic trends of the strike of Yandal Resources’ (ASX:YRL) gold project - Flushing Meadows.

RTP 1VD Magnetics of new licences (Image source: ASX update, 10 March 2021)

Recent update: Avenira (ASX:AEV) acquires 2 Prospecting Licences at Jundee South

The initial geologic interpretation results have identified similar stratigraphy patterns on the Flushing Meadows deposit and the new licences. To gain more clarity and knowledge of the prospects, Avenira is planning reconnaissance exploration works.

Geological Interpretation of new licences (Image source: ASX update, 10 March 2021)

Also read: Avenira (ASX:AEV) unlocks value at Jundee South Gold Project, shares zoom 12.5% post announcement

Additionally, Avenira will undertake the work of compiling and analysing of the historical exploration data from the licences to identify targets for further exploration.

Avenira – An exploration and development player with strong financial position

Avenira went into a loan agreement with Au Xingao Investment Pty Ltd. The agreement involves a loan facility of $3 million. Au Xingao is a renowned investment firm and holds a substantial number of shares of Avenira.

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The loan will be availed at an annual interest rate of 8% for a period of three years. The terms of the loan agreement dictate that any accrued amount will be capitalised every six months in case Avenira fails in making repayments on time.

Au Xingao would have an option to convert the loan amount and the accrued interests into ordinary shares of Avenira. The conversion would be instrumental only after 18 months from the day of the signing of the agreement. The share price for the conversion would be priced as per the price calculated from 30 days of VWAP.

Good Read: Will stars align for Avenira (ASX:AEV) in 2021?

Drilling campaign: Unlocking the values of Jundee South

Avenira drilled 247 aircore drill holes on the Jundee South prospect during the December 2020 quarter. The drilling campaign was aimed to test Priority 1 and Priority 2 targets identified after carefully analysing the historical data and available geochemical and geophysical data. The drilling campaign returned drill intercept of high gold values and instill more confidence in the project.

Further, follow-up drilling campaigns are planned for MF02 and YaN11 (gcmSHRB36) targets.

Avenira trades at AU$0.008 a share on 24 June 2021 at 11:20 AM AEST, registering an increase of ~33.33% against the previous close.


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