Marmota Energy Ltd (ASX:MEU) is acquiring a 100% interest in 3 tenements around Kingsgate Consolidated Ltd’s (ASX:KCN) Challenger Gold Mine in the Central Gawler Craton, from a private party.
The new tenements cover over 800 square kilometres of highly prospective ground around the Challenger mine.
The consideration for the tenements is 1 million Marmota shares to be issued on completion of the acquisition.
Adding interest, the South Australian Government has granted the company’s exploration licence application (ELA 2015/00175) for areas immediately adjacent to the company’s Widgety prospect.
Earlier this week, Marmota commenced its 2016 gold exploration program at the Gawler Craton tenements.
Marmota’s exploration team is now headed up by Dr Kevin Wills, the geologist who designed the calcrete sampling program that discovered the Challenger Gold Mine.
Marmota has targeted multiple areas in the region, including Westpoint Hill and surrounds, Muckanippie, and Mt Christie tenements through a rapid reconnaissance calcrete sampling.
These tenements are believed to have potential for significant gold anomalism.
In October 2015, Marmota’s calcrete sampling on an 800 metre grid at the Westpoint Hill identified gold-in-calcrete anomalous assay results of 70 ppb to 107 ppb.
These are better than 99.9% of all calcrete sampling results in the South Australian government database.
Marmota’s share price has increased by 64% during the last 6 months.
Proactive Investors is a global leader reporting financial news, media, research and hosts events for listed emerging growth companies and investors across four continents.