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Highlights
- Strategic Acquisition: Leeuwin Metals Ltd (ASX:LM1) secures the Marda Gold Project from Ramelius Resources Ltd (ASX:RMS), encompassing 500 square kilometres of mining, exploration, and prospecting leases in Western Australia.
- Exploration Potential: The project features high-grade drill intercepts and relatively underexplored prospects, with assays indicating significant gold mineralisation.
- Growth Milestones: Payment terms include performance-based milestones tied to defining JORC-compliant gold resources of 500koz and 1Moz, highlighting future resource growth.
Leeuwin Metals Ltd (ASX:LM1) has announced the acquisition of the Marda Gold Project, a substantial asset spanning 500 square kilometres in Western Australia. The acquisition was facilitated through a binding share sale agreement with Ramelius Resources Ltd (ASX:RMS), enabling Leeuwin to acquire Marda Operations Pty Ltd, the entity owning the project.
Ramelius will receive $500,000 worth of Leeuwin shares upon completion of the agreement. Additional payments include $500,000 following the definition of a JORC-compliant resource of 500,000 ounces of gold (milestone one) and $1 million upon reaching 1 million ounces (milestone two).
Project Location and Scope
The Marda Gold Project is situated 120 kilometres north of Southern Cross, featuring multiple granted mining leases and several open pits. While earlier exploration primarily targeted near-mine areas, a significant portion of the project remains underexplored, with high potential for discovering new high-grade deposits.
Exploration Highlights
Notable assay results from unmined prospects include:
- 2 metres at 16.75 grams per tonne (g/t) gold from 12 metres.
- 3.6 metres at 16.4 g/t gold from 1 metre.
- 1 metre at 27.75 g/t gold from 31 metres.
These results underscore the project's potential for high-grade mineralisation, providing Leeuwin with a strong foundation for future exploration.
Strategic Vision
Leeuwin aims to capitalise on the untapped exploration opportunities across the tenements, with a focus on high-grade mineralisation that remains open and underexplored. The project also holds prospectivity for iron ore, further enhancing its potential value.
Leadership Insight
Christopher Piggott, executive chairman of Leeuwin Metals, emphasised the strategic significance of the acquisition. He highlighted the project's advanced stage, substantial exploration upside, and minimal shareholder dilution as key advantages.
Outlook
The Marda Gold Project aligns with Leeuwin's growth strategy, offering a blend of advanced assets and untapped potential. As the company progresses exploration and achieves defined milestones, the project is expected to contribute significantly to its resource base and operational growth.
