Beacon Minerals (ASX: BCN) has entered an option agreement to purchase tenements adjacent to its Barlee Gold Project in Western Australia that will increase the landholding in the area by approximately 100 square kilometres and provide substantial upside exploration potential for the company.
This option agreement is for the purchase of tenements E77/1711, E77/1712, E77/1713 and E77/1714.
Beacon may elect by 30 November 2011 to earn a 100% interest in the tenements by paying the vendor the sum of $100,000 plus $15,000 reimbursement of costs incurred.
The tenement area covered by the option agreement totals approximately 100 square kilometres and includes highly prospective greenstone mineralisation as well as contact zones with granite and banded iron formations.
This provides substantial landholding in addition to the 300 square kilometres currently held by Beacon.
Darryl Harris, managing director, said the company will continue to aggressively explore in its fully funded 2011 exploration program.
Beacon is continuing with the aim of increasing the current JORC inferred resource of 74,000 ounces at 6 g/t Au through RC drilling of identified regional mineralised zones.