Gold success leads Okapi to proceed with Enmore acquisition
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Okapi is proceeding with the acquisition of the Enmore gold project following successful maiden drilling and meeting the minimum expenditure requirements.
Its 10-hole drill program had returned results such as 174m grading 1.83 grams per tonne (g/t) gold from surface at the Sunnyside East target that ended in a rich 1m interval grading 15.15g/t gold.
This and other thick gold intersections have led Okapi Resources (ASX:OKR) to formally notify Providence Gold and Minerals of its intention to proceed with the project’s acquisition.
It has elected to pay the first milestone payment of $300,000 through the issue of shares at a price equal to the 10-day volume weighted average price immediately prior to the date of issue.
This is subject to shareholder approval at its upcoming annual general meeting.
Okapi is also required to make a second milestone payment of $400,000 on the definition of a JORC compliant resource of no less than 100,000oz of gold at a grade of about 1.5g/t gold.
It will also have to pay the vendor a 2% net smelter royalty on future gold production.
Enmore is located just 20km south of Red River Resources’ (ASX:RVR) operating Hillgrove mine that had previously produced about 730,000oz of gold.
Gold was first discovered at the Enmore area in 1876 and was mined intermittently until 1940.
Most previous exploration carried out prior to Okapi’s involvement has been shallow with about 153 of the 233 holes drilled completed to less than 50m in depth and just 41m drilled to a depth of more than 100m.
This has left significant exploration potential at Enmore with 39 identified prospects, which are largely untested by deep drilling.
This article was developed in collaboration with Okapi Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.