ASX-listed explorer Everest Metals Corporation has hailed a new agreement to earn up to 100 per cent in the advanced Revere gold project north-east of Meekatharra in WA as a transformational opportunity for the company.
Everest, formally known as Twenty Seven Co pointed to the zone’s historical production, significant gold-copper potential and clear runway to establishing a JORC compliant resource as key merits in the acquisition.
The company entered into an exclusive, legally binding farm-in and joint venture term sheet with private firm Entelechy Resources to pick up the project. As part of the deal, Everest will initially pay $10,000 in cash and issue 3,000,000 fully paid ordinary shares to Entelechy in exchange for a 51 per cent interest.
After completing a host of additional terms, including funding the exploration and development work required to complete a feasibility study at the operation, Everest will earn the right to mop up the remaining 49 per cent. If all goes to plan the transactions and development work will result in Everest acquiring full ownership of Revere.
The project takes in an 82 square kilometre land position and boasts a system of richly endowed gold reefs known as the “Revere Reefs” which extend from surface over a 7km strike area. The reef is fundamentally a mineralised structure comprised of geologically discrete, structurally variable, high-grade veins with grades of between 5-50 grams per tonne within a larger halo of low-grade mineralisation of about 0.2 g/t.
A prolific amount of alluvial gold has been derived from the Revere Reefs in recent times including bulk samples grading up to 325 g/t by Mineral Commodities in 2018.
The allure of Revere is also tied to the operation’s proximity to several high-value gold plays including Sandfire Resources’ DeGrussa copper-gold mine which sits along strike and lies 55km north east. Sandfire’s asset is one of Asia-Pacific’s premier high-grade copper mines in terms of production and churns out roughly 300,000 tonnes of high-grade copper concentrate each year in addition to about one tonne of gold annually.
Everest plans to test Revere’s surface gold potential over the next few months through an initial 36,000 tonne bulk sampling campaign along with a suite of metallurgical test work. Management says the program could permit short-term gold mining and production via a mobile gravity plant.
Everest Metals Corporation Chief Operating Officer Simon Phillips said:“Gold and precious metals development is a core pillar in EMC’s business strategy and RGP is highly complementary to the recent developments the company has made in the battery metals sector. RGP is an advanced asset with significant gold and copper potential – both at surface and at depth – which is clearly evidenced from previous exploration.”
Everest envisions the JV agreement with Entelechy Resources being signed later this month and hopes to tie down shareholder approval to cement the deal in February this year. Assuming no hiccups, the company is aiming to launch a host of works including bulk sampling, metallurgical test work, geophysical 3D modelling and a diamond drill program later in the quarter.
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