Everest Metals Corporation (ASX:EMC) has executed a binding farm-in and Joint Venture (JV) agreement with privately owned Entelechy Resources (Entelechy) to acquire up to 100% of the WA-based Revere Gold Project near Meekatharra in the state’s mining-heavy north.
On the news, EMC shares were up 10% to 8.7c in the second hour of afternoon trades.
The tenement area remains subject to an ongoing mining lease application with the WA government which the company expects to process before Q2 without incident.
The farm-in agreement is subject to shareholder approval given that Entelechy is owned by the son of sometimes controversial Director Mark Caruso, the former CEO of Mineral Commodities (ASX:MRC).
The project is located nearby the Great Northern Highway, a major industrial route which connects Perth to the state’s north-west region. The highway is also heavily utilised by iron ore miners and constitutes a key logistics route in the state.
The project tenement covers 82sq.km and includes a gold reef system which reportedly commences from surface over a 7km strike area.
Those reefs are reported to contain gold grades ranging from 5 grams of ore per tonne (g/t) up to 50g/t, well above ‘bonanza’ grades of ~38/gt.
Three priority drill targets are already in place and the company foresees drilling to commence before Q2 of 2023.
Gold potential at Revere has been defined, the company highlighted on Wednesday, and the project also boasts strong copper potential.
Diamond drills will plug the ground deeper in the upcoming campaign to test the state of copper mineralisation at depth.
The Yilgarn Craton underpins the Kalgoorlie region of WA, subject to a huge number of base and precious metal miners.
Some rock formations in the Yilgarn are up to 2.5 billion years old, the sheer force of time and geological change is one of the reasons the region contains rich mineralisation.
“The acquisition of the Revere Gold Project (RGP) represents a transformational opportunity in a proven prolific gold producing region of Western Australia,” Everest Metals COO Simon Phillips said.
“Our technical team believes there is a clear pathway to establishing a JORC compliant resource and we look forward to providing further details on our exploration strategy and work plans shortly.”
“Gold and precious metals development is a core pillar in EMC’s business strategy.”
EMC is a microcap with a market cap of $9.25m.
One year returns are down -37.8%.
Year to date performance is up 10.13%.
The company is ranked 126 of 173 constituents in the Materials sector.
At the end of the September quarter, Everest had $3.3m in cash.
It spent $268,000 in opex over the same period.
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