Latin Resources Ltd (ASX:LRS) has actioned an option agreement to acquire a 100% interest in the Peep O’Day gold prospect in the Lachlan Fold Belt of New South Wales, where previous exploration has indicated the presence of a high-grade gold structure with a strike of 1.3 kilometres in length.
The company completed a number of regional exploration programs at Peep O’Day before making the decision to acquire the prospect, including remodelling of available airborne geophysical data, on-ground reconnaissance mapping, outcrop sampling and systematic soil sampling.
Latin’s efforts confirmed high-grade gold at surface, with outcropping samples returning results including: 9.79 g/t gold, 8.58 g/t gold, 8.41 g/t gold and 7.79 g/t gold.
LRS has already resubmitted drilling permit applications for a first-pass reverse circulation (RC) drill test following the change of ownership and is currently in discussions with several third-party groups concerning the divestment of Peep O’Day and other non-core assets.
Peep O’Day acquisition details
In return for 100% of the new tenement EL9412 (which includes only the Peep O'Day prospect), Latin offered the Mining and Energy Group Pty Ltd (MEG) 6 million fully paid LRS shares.
The acquisition includes all mining information possessed by MEG in relation to the Peep O’Day prospect, and full and exclusive control of the exploration, prospecting, investigation, development and exploitation of the tenement.
The acquisition is subject to approval by the Department for Regional NSW and includes no milestone or royalty payments for the Peep O’Day prospect.
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New Peep O’Day (EL9412) tenement location map