Aeris Resources Limited has announced the sale of the Yandan Gold Exploration Project, located in North Queensland, to GBM Resources Limited.
Aeris will receive $3 million of GBM shares and a 1.5 per cent Net Smelter Royalty on the first 300,000 ounces of gold equivalent mined from the Yandan tenements. Concurrently Aeris will subscribe for $1 million in GBM shares through a separate placement.
Completion of the transaction is subject to various conditions including GBM shareholder approval and entry into definitive sale documentation amongst others. The transaction is anticipated to be completed in December 2020.
Aeris’ Executive Chairman, Andre Labuschagne, said whilst Yandan is a non-core asset for Aeris, they have long held the view that the Drummond Basin is highly prospective for gold-rich mineral systems.
“The prospectivity of the Drummond Basin is a view shared by GBM and the taking of an equity position in GBM enables Aeris to maintain exposure to this highly prospective region,” Mr Labuschagne said.
Yandan is positioned on the eastern margin of the Drummond Basin, proximal to the contact of the Drummond Basin within the Anakie Inlier.
The Yandan gold mine was operated by Ross Mining between 1985 and 1990 and produced more than 350,000 ounces of gold by heap leach and from a CIL (carbon-in-leach) plant.
An initial Mineral Resource Estimate (JORC 2004 compliant) has been determined for the East Hill mineralised system: 4 Million tonnes at 2.4 grams per tonne (g/t) for 308,000 ounces of gold Inferred Resource with no lower cut-off. 
Regional studies have defined other mineralised centres with significant potential to delineate economic gold systems, including the Illamahta prospect which represents a shallow low-grade mineralised system approximately 14 kilometres south-west of the Yandan deposit.
 Mineral Resource figures reported from three domains which represent high-grade epithermal vein systems. All block estimates within each domain have been reported (0 g/t Au cut-off).