Minotaur Exploration Limited (Minotaur or the Company) has completed its due diligence and will proceed to acquire 100 per cent ownership of the Pyramid Gold Project from Avira Resources Ltd (Avira). The project is located approximately 180 kilometres south of Townsville in Northern Queensland.
The project, covering 150 square kilometres embraces two main areas prospective for gold, being the West Pyramid Range and East Pyramid Range (Figure 1).
Minotaur notes that it is interested in the project due to its very credible drilling history and an extensive geochemical database, positioning Pyramid as a compilation of advanced gold exploration prospects.
The Company highlights that West Pyramid Range offers significant potential to expand the gold mineralisation footprint defined through historic work, especially along an 8-kilometre section of the Gettysberg Fault corridor.
The East Pyramid Range is less advanced, however, Minotaur is of the view the area offers potential for Intrusion Related Gold Systems, similar in style to other well-known gold deposits in the district such as Mount Leyshon (+3.5Moz) and Mount Wright (+1Moz).
Minotaur entered into a Sale and Purchase Agreement (S&PA) on 16 November.
Under the S&PA Minotaur will pay $150,000 cash (including the $25,000 Option fee already paid) and allot $100,000 in Minotaur shares (based on a 5-day VWAP) to the Vendor in return for the transfer of titles.
On Minotaur’s publication of a JORC Resource of at least 25,000 oz Au grading not less than 1.8 g/t Au Minotaur will pay $75,000 cash, otherwise within 24 months of Completion Minotaur will allot $75,000 in Minotaur shares.
A 1.5 per cent NSR will apply to the first 50,000oz Au produced.
The full announcement can be found online here.
*Above image: Figure 1: West Pyramid and East Pyramid Ranges gold-in-soil anomalies and main prospect locations. Image courtesy of Minotaur Exploration Limited.