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Spectrum Metals initiates gold strategy and acquires historic WA mine

Last updated: 07:52 04 Oct 2018 BST, First published: 17:52 03 Oct 2018 BST

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First Hit Gold Mine is about 650 kilometres northeast of Perth

Spectrum Metals Ltd (ASX:SPX) has acquired the historic First Hit Gold Mine near Menzies in Western Australia after the company initiated its high-grade gold strategy.

The mine was last operated in December 2002 by Barminco Pty Ltd and Barra Resources Ltd (ASX:BAR) and includes substantial underground mining infrastructure.

Spectrum’s immediate focus will be to develop a drilling program targeting extensions of high-grade drill intercepts at the near-term development opportunity.

The company has also raised $600,000 at 0.4 cents a share for 150 million shares, with funds to be used for exploration and development of its Western Australian assets.

‘Development opportunity with immediate drill targets’

Spectrum managing director Paul Adams said the acquisition was a great opportunity for Spectrum to get into an advanced-stage project with significant existing infrastructure and easy access.

He said: “The existing drilling and relatively easy access to the previously-mined zones means that this is a development opportunity with immediate drill targets.

“Numerous opportunities exist to treat ore in the district, opening the prospect for a low-capital-cost start-up, combined with high-grade gold mineralisation.”

Adams commented the mine acquisition nicely balanced Spectrum’s earlier-stage WA exploration project at Whaleshark.

Potential additional gold discoveries

Mineralisation at First Hit occurs as a silica lode varying in thickness from 1-4 metres within a north-northeast-trending shear zone.

The higher-grade mineralisation is associated with a greenish quartz-sulphide lode, with visible gold, within an altered and carbonated biotite schist.

Previous surface and underground drilling at the base of the existing workings indicates that gold mineralisation is open to the north south and down-plunge within the plane of the structure.

Spectrum believes numerous opportunities exist surrounding the mine for the discovery of additional gold mineralisation.

Terms of the acquisition include $100,000 in cash at settlement and $100,000 in ordinary Spectrum shares at a price equal to the 5-day volume-weighted average price.

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