Great Southern Mining says it will focus its Queensland exploration efforts on its Edinburgh Park gold project after signing a deal to offload its Palmer River site to Revolver Resources for a cool $1 million.
The deal appears to be mutually beneficial for both companies with Great Southern enjoying a significant exploration cash boost whilst Revolver receives licences covering an area of 360 square kilometres adjacent to its flagship Dianne copper project in northern Queensland.
As part of the deal, Revolver will pay Great Southern a $100,000 option fee that allows exploration for a period of 12 months across the project.
Should Revolver decide to purchase the two exploration licences it will pay Great Southern a further $150,000 cash consideration in addition to $750,000 in Revolver shares.
The agreement is contingent on Great Southern successfully transferring the exploration permits into its newly formed and fully owned subsidiary Mt Bennett Exploration.
Great Southern Mining Executive Chairman, John Terpu said: “The Palmer River tenure allows Revolver to further consolidate the landholding around the Dianne copper project and I am confident the regional knowledge and expertise of the Revolver team, combined with the exploration and field activity planned, will deliver value for both Great Southern and Revolver shareholders.”
The Palmer River project is located in the Hodgkinson Province, a known gold-copper district with high prospectivity for lode and placer-style gold and volcanic massive sulphide-style copper deposits.
Dianne is considered the largest known copper deposit in the area and historically produced about 70,000 tonnes of direct shipping grade copper ore, assaying between 18 per cent and 26 per cent copper and 359 grams per tonne silver.
Once the deal is complete, Great Southern will turn its attention to progressing Edinburgh Park that takes in more than 1200 square kilometres.
Following significant flooding in the region, preparation work has already taken place covering the Mt Dillon, Fish Creek and Edinburgh prospects including extensive reviews of current target prospects and 2021 field activities.
In 2020 Great Southern used a hyperspectral survey to gain an insight into the mineral composition of the underlying rocks at Edinburgh that identified five high priority gold targets and 10 secondary gold targets.
Hyperspectral imaging is used by explorers searching for “epithermal” systems, where gold, silver and copper deposits form in magmatically active and shallow regions of the earth’s crust.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
