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Highlights
- Australian Mines targets majority interest in Brazilian gold project
- Initial exploration to include drone surveys and drilling by H2 2025
- Deal structured with milestone-based earn-in up to 80%
Australian Mines (ASX:AUZ) has entered into a key agreement to earn a majority stake in the Boa Vista Gold Project, located in Brazil. The deal, formalized through a binding term sheet with Cabral Resources and Majestic D&M Holdings, outlines a staged investment path that could see the company acquire up to 80% ownership in the project.
As part of the agreement, Australian Mines will initially pay C$55,000 (approximately A$61,608) and issue A$1 million worth of shares. To progress toward a 51% stake, the company has committed to investing a minimum of A$4.5 million over three years, completing 6,000 metres of diamond core drilling, and providing C$250,000 in annual payments. Upon meeting these requirements, a joint venture will be established with Cabral Resources.
To move beyond the 51% threshold, an additional 19% stake can be earned through A$1 million in exploration and the completion of a Feasibility Study. This study must include a JORC-compliant reserve exceeding 250,000 ounces of gold. Australian Mines can then acquire a final 10% interest by making a payment of A$5 million within 90 days of completing the second phase.
The Boa Vista project stands out due to its near-surface mineralisation and potential district-scale exploration upside. Historically, the region has been recognised for high-grade, structurally focused gold systems. However, broader disseminated gold zones—such as those identified at Boa Vista—are considered relatively rare and promising.
To support its exploration ambitions, Australian Mines plans to implement a light detection and ranging (LiDAR) program and a high-resolution drone magnetic survey. These geotechnical initiatives are expected to begin shortly, paving the way for a drilling program targeted for the second half of 2025.
An important milestone in the project’s advancement will be updating the historical resource to meet JORC-2012 standards. Additional work will include metallurgical, environmental, and baseline studies to build a comprehensive project understanding.
While Australian Mines (AUZ) is not currently listed among the top ASX 200 companies, its ambitious move into South American gold assets marks a notable development in its growth strategy.
This strategic investment could not only broaden Australian Mines’ global footprint but also align the company with long-term gold market opportunities.