PVW Resources NL (ASX:PVW) has expanded its King of The West Gold Project area near Kalgoorlie in WA by 50% to span more than 150 square kilometres.
The 50% increase in PVW's tenement package follows an asset swap with fellow ASX-lister Yandal Resources Ltd and the acquisition of private company Stark Resources Pty Ltd.
Ultimately, recent promising auger geochemical sampling results from King of The West provided the motivation for PVW to pursue a transaction that increased its Kalgoorlie landholding.
Moving forward, auger drilling will take place over the newly-expanded project to extend its auger coverage before aircore exploration begins.
Expansion in world-class province
PVW Resources executive director George Bauk said: “These transactions add 50% to our current landholding in the Kalgoorlie region, and with our recent successful auger drilling program, which has identified significant anomalies, including a 1.2-kilometre-wide highly anomalous zone, it provides a greater contiguous area to expand on these results.
“Results are eagerly awaited from the Black Flag aircore program and from extensional auger drilling.
“Kalgoorlie is a world-class gold province and we have a substantial land package located 30 kilometres from the centre of Kalgoorlie, surrounded by operating mines and mills, with outstanding results to follow up.”
King of The West
Located at the heart of the PVW’s Kalgoorlie Project, King of The West is a prospective gold mineralisation play. Recently, assays from an auger sampling program at the project’s E2/614 tenement confirmed its gold prospectivity.
Ultimately, auger drilling and geochemical sampling work over this King of The West tenement forms part of the first detailed systematic exploration activities undertaken over the northern third of the tenement.
Results returned to date include large gold anomalies, grading at more than 40 parts per billion (ppb) gold. Numerous assays graded above 80 ppb, while results peaked at 176 ppb gold.
Significantly, the southernmost line of the 400-metre by 100-metre auger grid returned a 1.2-kilometre continuous section of more than 80 ppb gold.
Auger coverage of this open anomaly will be extended to the south as soon as possible before aircore drilling takes place.
In the meantime, results are pending for extensional auger drilling on the E27/571 tenement, as are assays from the Black Flag Project aircore drilling.
The key transactions
In order to boost its Kalgoorlie landholding and consolidate the tenements into its specialised spinoff, PVW Kalgoorlie Pty Ltd, PVW Resources has agreed to two transactions.
The first, a tenement swap with fellow gold explorer Yandal Resources, involves a 2% net smelter royalty, which each company retains on their previous property.
In addition, PVW has executed a binding term sheet to acquire all the issued capital in Stark Resources, through which it has secured a 29-square-kilometre land package.
As consideration for this transaction, Stark Vendors will receive $15,000 in cash, just over 1.5 million fully-paid ordinary PVW shares and 1.7 million performance rights.
Each of the transactions is conditional on the conclusion of satisfactory due diligence.