Meeka Metals has agreed to acquire various mining tenements surrounding the Mt Holland gold field, within the Southern Cross Province of Western Australia, from MH Gold Pty Ltd and Montague Resources Australia Pty Ltd.
The tenements have a combined area of 71 square kilometres and cover 24 km of north-south striking banded iron formation (BIF) units, the principal host of gold mineralisation at Mt Holland.
Under the agreement, Meeka will pay $10 million on completion of the deal and another $10 million three months later, as well as 17,804,881 fully paid ordinary shares in Meeka.
“Having historically produced over 1.2Moz of gold, this Archaean greenstone belt is evidently fertile, yet the belt has received very limited modern exploration for gold over the past 15 years,” said Meeka Managing Director Tim Davidson.
“This, despite significant past production and strong evidence there is more gold to be found.
The 24 km of north-south striking, gold-hosting BIF within the acquired tenure present compelling targets for drilling and we intend to systematically drill out these targets over the next 12-18 months.”
Verification of historical drilling is underway to facilitate the conversion of non-2012 JORC Mineral Resources to 2012 JORC standard. The Blue Vein, Bushpig and Razorback gold deposits will be the priority and are expected to take three to six months.
Source: Meeka Metals