Empire Metals Ltd (LON:EEE) has exercised its option to acquire 75% of the Eclipse gold project in Western Australia.
The company, in a statement, said that initial work programme at Eclipse increased confidence in the project's potential to host a profitable small-scale high-grade open pit gold mine.
Highlight assay results to date included grades up to 6.5 grams per tonne over 5 metres.
READ: Empire Metals raises £2mln for Eclipse
A further work programme is due to start before the end of 2020, including infill and extension drilling.
"We are pleased to have now exercised our option to acquire a 75% interest in Eclipse which, coupled with the company's recent placing, allows us to push ahead with developing the project,” said Mike Struthers, chief executive.
“These additional drill results in the uppermost 50m of Eclipse are very encouraging and add further to our confidence in the potential for a profitable small-scale and high-grade open pit operation.
“This is very attractive, but the fact that the Eclipse mineralisation is also open at depth is particularly interesting and will be a key element of further work as we continue to advance the project.”
"The company is also expecting to receive a permit in the near term for drilling further to the north-west along the strike of Eclipse, in the vicinity of the other old workings of Jack's Dream and Steinhobel.”
Struthers added: "We are now focusing our efforts on preparing for the next phase of drilling and look forward to providing further updates on the continued work at Eclipse over the coming weeks."