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Red 5 looks at Great Western

11th November 2019

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Junior Terrain Minerals has struck an option agreement with fellow-listed Red 5 to sell the Great Western gold deposit, in Western Australia.

Under the terms of the option agreement, Red 5 would pay an option fee of A$300 000, giving the junior gold company the right to conduct due diligence into the existing resource at Great Western.

On the expiry of the option period, Red 5 could acquire the Great Western project for A$2.2-million worth of shares, with the share price to be calculated on the five-day volume weighted average share price prior to the completion date.

Red 5 MD Mark Williams on Monday said that the proposed acquisition provided the company with a low risk opportunity to increase its mineral resource base within economic trucking distance of the Darlot gold processing plant.

“Darlot is one of the great gold mines of the Eastern Goldfields, operating continuously for over 30 years and producing approximately 2.9-million ounces of gold to date. It’s a core asset for Red 5 and we have a multi-pronged plan under way to deliver continued growth in resources and mine life.”

The Great Western project is currently estimated to host an opencut and underground mineral resource of 709 000 t, grading 2.7 g/t gold for 62 100 oz of contained gold.

Edited by Creamer Media Reporter

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