Gold: Northern Star brings Echo Resources into its stable
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Explorer Echo Resources (ASX:EAR) is now under Northern Star Resources’ (ASX:NST) control after the gold miner secured 59.3 per cent of Echo’s shares.
Northern Star launched its $193m takeover bid in late August, offering Echo shareholders 33 cents for every share they held.
In line with the takeover agreement, Northern Star’s chief financial officer Ryan Gurner and legal counsel Sarah Curnow have been appointed as directors of Echo while all directors of Echo, save non-executive director Alan Thom, have stepped down.
The takeover bid is aimed squarely at securing control of Echo’s Yandal gold project, which is about 400km north of Kalgoorlie and, more importantly, close to Northern Star’s Jundee operation.
Yandal covers 1600km2 and comes with a current resource of 1.8 million ounces of gold, along with the mothballed 1.8 million-ounce-per-annum Bronzewing processing plant.
Black Cat Syndicate’s (ASX:BC8) initial diamond drill holes at the Myhree deposit near Kalgoorlie have hit high-grades, including a stunning intersection of 1.7m at 335.96 grams per tonne (g/t) gold, just 52.2m from surface.
Other notable results include 7m at 9.84g/t gold from 59.5m in the same hole and a separate intersection of 4.74m at 5.99g/t gold from 166.3m.
Any result above 5g/t gold is considered to be high-grade.
The company is now preparing to carry out reverse circulation drilling to test the potential extension of mineralisation to the southeast.
Yandal Resources (ASX:YRL) has completed initial metallurgical test work which indicates that gold is readily extracted from ore sourced from its Flushing Meadows gold deposit near Wiluna in Western Australia.
Meanwhile, Prodigy Gold (ASX:PRX) has identified the Arcee anomaly as a potential gold prospect after drilling at its Lake Mackay joint venture project in the Northern Territory returned a top result of 12m at 3.5g/t gold.