Genesis Minerals (ASX: GMD) is acquiring the Viking Gold Project near Norseman, Western Australia, from AngloGold Ashanti (ASX:AGG), giving it access to a series of high grade, drill ready gold targets and a high-quality database.
The company is paying $50,000 by 10 March 2014 and a deferred payment of $2 per Measured or Indicated Resource ounce defined on or partially on the Tenement Area as quoted in the first public announcement of a Measured or Indicated Resource on or partially on the Tenement Area.
It will also pay AngloGold a royalty equal to 1.25% of the Net Smelter Return generated from the sale of any gold mined or produced from the Tenement Area, after commercial production of 25,000 ounces.
The 970 square kilometre Viking Gold contains numerous surface gold geochemical anomalies identified from a regional auger survey including the extensive 7 kilometre by 6 kilometre gold anomaly.
Initial limited drilling during 2012 and 2013 was focused on Beaker and returned shallow diamond drilling results of up to 1.8 metres at 15.3 grams per tonne gold from 56 metres and 2.3 metres at 5.8g/t gold from 96.4 metres at the Beaker 4 anomaly.
Shallow aircore drilling across the Beaker 1-4 anomalies returned 11 metres at 3.1g/t gold from 14 metres; 10 metres at 0.8g/t gold from 13 metres; and 2 metres at 13.1g/t gold from 49 metres.
This indicates the potential to rapidly define a high-grade gold, multiple lode vein system at the high-priority Beaker Prospect and elsewhere on the Project
Rock chip sampling had highlighted additional prospectivity by identifying sub-cropping, gold bearing quartz veins that remain untested by drilling.
Genesis plans to systematically test a series of high-grade vein targets and surface gold anomalies.
Viking Gold is located close to regional mining infrastructure about 35 kilometres southeast of Norseman.
It represents a significant portion of the highly prospective southern Tropicana belt within the rapidly emerging Albany-Fraser Orogen mineral province.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.