Great Southern sells mining licence in $9 million | Australian Markets

Gold explorer Great Southern Mining has locked in a blockbuster $9 million deal with heavyweight Regis Resources to promote its Southern Star mining licence in Western Australia’s Duketon Greenstone Belt whereas forging a strategic alliance to unlock the area’s untapped riches.

The deal sees Regis take full control of the mining licence internet hosting the Southern Star gold prospect, which is simply 3.5 kilometres south of the company’s working 390,000 gold ounce Ben Hur open pit.

Regis has forked out an upfront $4 million fee in money, with up to $5 million more on the desk, relying on future gold price actions and useful resource milestones.

It’s not arduous to see why. Drilling at Southern Star has beforehand returned some hefty hits, together with 68 metres at 1.9 grams per tonne (g/t) gold from 61m and 59m at 2.1g/t gold from 53m, proving the prospect’s potential to ship near-surface ounces.

The transaction is structured throughout three phases – the $4 million upfront fee is simply a starter. Stage two contains a additional $3 million in money pegged to gold price ranges when mining begins, starting from $1 million at a $4000 per ounce gold price to a full $3 million if the price stays above $5000 per ounce.

With the gold price at the moment trading at $5157 per ounce, Great Southern might effectively be in for the complete payout.

Stage three unlocks an extra $2 million if Regis declares a JORC-compliant reserve larger than 150,000 ounces of gold on the Southern Star prospect.

This transaction is useful for each Great Southern Mining and Regis. It delivers a sturdy capital enhance to fund aggressive exploration throughout GSN’s extremely potential Duketon tenure, most of which stays underexplored. Meanwhile, Regis is completely positioned to leverage the near-term development upside from Southern Star. It’s a deal that creates speedy worth and units the stage for new discoveries in the Duketon Belt.

There is more in play than money in the new deal. Regis has additionally picked up a first proper of refusal on any outlined mineral sources up to 1 million gold-equivalent ounces throughout the remaining 98 per cent of Great Southern’s granted tenements in the belt, which span a additional 421 sq. kilometres.

To additional sweeten the trade, each events have inked a knowledge sharing alliance geared toward fast-tracking discoveries throughout Great Southern’s grounds, one of WA’s hottest greenstone belts. The company plans to make use of Regis’s money injection to hit the ground arduous.

Great Southern’s Duketon tenure covers main strike lengths throughout three mineralised corridors with important exploration upside potential. These embrace 8km of the Erlistoun Trend, 7km alongside the Garden Well Trend and 11km between Regis’ Rosemont and Ben Hur deposits.

All tenements are close to Regis’ 10 million tonne every year processing services at Garden Well, Moolart Well and Rosemont.

Meanwhile, Great Southern is set to kick off what could also be its most enjoyable drilling marketing campaign but at its Leichhardt Creek prospect, which is an element of the company’s flagship Edinburgh gold and copper project in North Queensland.

The upcoming program will mark the primary time deep diamond drilling has focused this space, the place the company suspects a main porphyry or intrusion-related gold system could lie hidden.

The company has partnered with international mining powerhouse Gold Fields Limited, which may earn a 75 per cent stake by investing $15 million over six years. The pair plan to sink three holes up to 800m deep to check two compelling induced polarisation anomalies and uncover the geological fact beneath. If the drill bit hits its mark, a important discovery may very well be simply across the nook.

With Regis holding the keys to processing and Great Southern holding the frontier land at Duketon, the strategic alignment could set the stage for the following multi-million-ounce discovery in the massively endowed greenstone belt.

The area already hosts the large Gold Fields-owned Granny Smith gold mine, 40km south, and the Ashanti Gold-owned Sunrise Dam gold operations, simply a little additional south.

Great Southern’s stability sheet simply acquired $4 million stronger, its focus is now sharper and with gold trading at report highs, the company appears cashed up and able to chase its subsequent massive rating.

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