Miramar in drill-for-equity agreement at Gidji JV gold project

• Miramar signs deal with Topdrill to drill test the 8 Mile gold target
• RC drilling will test the shallowest part of the 8 Mile IP anomaly
• Drilling will kick off in July

Special Report: Miramar Resources has entered a drill-for-equity agreement with leading drilling contractor Topdrill to test the high-priority 8 Mile target within the Gidji JV gold project in WA.

Miramar’s (ASX:M2R) Gidji JV is about 15km north of Kalgoorlie and surrounded by multiple god mining and processing operations, including Northern Star’s (ASX:NST) Kalgoorlie gold operations at Fimiston (Super Pit), Mount Charlotte and Kanowna Belle.

The 8 Mile target is along strike from Northern Star’s 8 Mile Dam deposit, which contains 7Mt at 1.4g/t gold for 313,977 ounces.

Induced Polarisation (IP) surveys completed by Miramar suggest a potential northern extension to 8-Mile Dam offset by a series of NE-trending faults.

RC drilling in July will test the shallowest part of the 8 Mile IP anomaly after the current aircore drilling program winds up and once site preparations are completed.

Watch: Gidji gold footprint grows with latest drilling

‘Vote of confidence’

M2R executive chairman Allan Kelly said the new agreement with Topdrill was a vote of confidence for Miramar’s exploration strategy at Gidji.

He said it followed several Exploration Incentive Scheme grants, Research and Development refunds and previous cash-equity deals secured by the company.

“This new agreement with Topdrill enables us to maximise our drilling budget in testing 8 Mile and other key gold targets at Gidji and we thank them for their support,” he said.

Since starting exploration at Gidji in late 2020, Miramar has outlined several large supergene footprints under the Gidji paleochannel, with multiple shallow high-grade gold intersections.

Gidji falls within the Boorara Shear Zone, an area characterised by a complex mix of ultramafic, mafic volcanic and sedimentary rock types.

The company’s primary objective is to identify the bedrock source of shallow gold at Gidji, which it believes holds strong potential for a new gold camp discovery.

Drill for Equity agreement details

Under the agreement, Topdrill will be issued fully paid ordinary shares in amounts equivalent to 40% of the GST-exclusive invoice value.

Shares issued will be issued at a deemed issue price equal to a 10% discount to the twenty-day volume weighted average price.

A maximum equity amount of $500,000 may be increased by agreement in writing between Miramar and Topdrill, with the agreement set to expire on 31 December 2025.

Shares issued under this agreement are subject to a voluntary escrow period of six months from the date of each invoice.

This article was developed in collaboration with Miramar 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.