Essex Minerals Inc (CVE:ESX) (FRA:EWX1) has completed the first stage earn-in on its three Australian gold projects, it said Thursday.
The junior exploration company has a right to earn in an initial 50% of Australian company KNX Resources Limited’s interest in the Cumberland, Mt Turner and Compass Creek projects by spending A$1 million on exploration by May 2021.
Once the first stage is completed, Essex can make an offer to acquire all of KNX shares at an independent valuation or earn another 25% interest in Mt Turner, 20% in Cumberland and 20% in Compass Creek, by spending another A$3 million in exploration.
READ: Essex Minerals describes drilling program at Cumberland project in Queensland as 'exceptional' success
Vancouver-based Essex said it is now mulling its options as to the next stage of the KNX earn-in agreement.
"The 2020 regional-scale exploration completed on the Cumberland property was a great success, encountering favourable geology for both epithermal and porphyry-style deposits in every hole, including the discovery of high-grade gold and silver mineralization in the south,” Essex CEO Paul Loudon said in a statement.
"In addition, we have doubled the size of the Mt Turner property by staking adjacent ground, which now gives the KNX joint venture the 14 kilometres known strike extent of the Drummer Fault. This represents a significant drill-ready gold target for follow up in 2021.
"We also paid the final property payment required to acquire the Compass Creek property in the Northern Territory, which also represents a drill-ready target for 2021 close to Kirkland Lake's Union Reefs mill."
Essex is an exploration and development company that looks at opportunities where it can earn into or joint venture on a project without issuing shares of the company.
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