Gold: Mithril leads the acquisition party with Mexican project buy, shares jump nearly 160pc
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Acquisitions are the name of the game today with Mithril Resources (ASX:MTH) securing an exclusive option to acquire the high-grade Copalquin gold and silver project in Mexico — news that sent shares through the roof.
Historical drilling results from this project include hits of up to 17.77m at 45.16 grams per tonne (g/t) gold and 118.2g/t silver from a depth of just 30.98m.
The market loved the deal with shares in Mithril gaining as much as 157 per cent to hit an intra-day high of 1.8c.
Copalquin lies within the Sierra Madre gold-silver trend that hosts several world-class gold and silver projects including Coeur Mining’s Palmarejo and Agnico Eagles’ Pinos Altos mines.
Mexico is also the world’s largest producer of silver and a top producer of gold, copper, zinc and other minerals.
The Copalquin project area contains 32 known historical gold and silver surface workings and underground mines including La Soledad and El Refugio.
Mithril is acquiring Australian private company Sun Minerals, which holds the option to acquire the Copalquin project, for 673,852,281 shares.
As part of the acquisition, Mithril will look to raise about $4.9m through an entitlement issue of one share priced at 1c for every share held by existing shareholders.
The majority of these funds will be spent on a drill program at Copalquin, though the company will also progress its existing projects.
Mithril will also appoint Dudley Leitch as its executive chairman while current managing director David Hutton will step down at the earlier of either the conclusion of the transaction or May 22, 2020.
Great Northern Minerals (ASX:GPP), formerly Greenpower Energy, has reached a heads of agreement to acquire exploration acreage around its existing Camel Creek and Golden Cup projects in Queensland. The acquisition of an 80 per cent interest in the two tenements from private company Gold Explorer will increase its exploration footprint from 81sqkm to 400sqkm.
The new tenements include historical gold mines, drill targets and samples of high-grade gold intercepts. Previous exploration has also identified four separate mineralised trends. Great Northern said the tenements had seen little modern exploration and already contained several high-priority walk-up drill targets.
Shares in GPP were up 33 per cent this morning to 1.2c.
Another company jumping on the acquisition bandwagon is Krakatoa Resources (ASX:KTA), which is acquiring the Turon project in New South Wales’ highly prospective Lachlan Fold Belt. The project is about 50km east of its Belgravia project and 60km northeast of Newcrest Mining’s (ASX:NCM) Cadia Valley Mine.
Rock grab sampling across the Quartz Ridge and Turondale Groups have returned top results of 1,530g/t gold and 150g/t gold, while limited drilling at Quartz Ridge has returned up to 2m at 6.53g/t gold from a depth of 30m.
Meanwhile, Catalyst Metals (ASX:CYL) has formed a joint venture with St Barbara (ASX:SBM) to explore the Drummartin gold project in Victoria. St Barbara will spend $3.5m within four years to earn a 50 per cent interest in the project and will manage the exploration programs while Catalyst remains the operator.
Drummartin is east of Catalyst’s Four Eagles gold project and about 60km north of the Fosterville gold mine. While there is limited previous exploration, the 648sqkm project appears to lie on the interpreted northern extension of the Redesdale, Fosterville and Drummartin Faults, which are considered to be important in the formation of the Fosterville gold mineralisation.