SYDNEY: Latitude Consolidated Limited has signed a binding option agreement to acquire a 100% legal and beneficial interest in South Australian Exploration Licence Application ELA2019/128 (Tenement), known as the Skye Gold Project.

The Skye Gold Project is located in the Gawler Craton, South Australia in a proven million-ounce terrain some 700km northwest of Adelaide. The tenement area is adjacent to Marmota Limited’s Aurora Tank Gold Project and reported significant high-grade gold intercepts at the Goshawk Zone. The project lies only 50km from the Challenger Gold Mine.

Gold Deposits in the “Challenger terrain”, including the million-ounce Challenger Gold Mine, have all been initially identified as shallow, modest grade gold deposits. Once controls on gold mineralisation have been defined at depth, Challenger, Aurora Tank and Golf Bore are understood to include very-high “bonanza” grade gold shoots with very predictable NE plunge.

The Skye Gold Project includes multiple prospects where near-surface gold mineralisation has been identified in shallow drilling by previous explorers. Latitude is planning to apply an exploration model that identified shallow gold targets that potentially represent the top of a system of high grade plunging gold shoots as exampled within 2kms of the Project at Aurora Tank (MEU) and Golf Bore (TYX) and at Challenger (Barton Gold).

The Company plans to commence exploration in the next few months once land access process is complete to better define gold mineralisation in the near surface to target these gold systems for high grade plunging gold shoots later this year.

The option agreement is consistent with Latitude’s broader strategy, focused on progressing exploration within the Company’s existing portfolio, whilst maintaining the flexibility to assess and pursue additional project acquisition opportunities that make good commercial sense for the Company.

Latitude’s Chairman, Tim Moore, commented: “The Skye Gold Project gives Latitude an exciting entry point into a proven and low-risk gold mining jurisdiction without having to outlay considerable upfront capital.

“The Gawler Craton hosts a number of large-scale gold systems, many of which are close to the Skye Gold Project. Initial reviews completed by our geologists suggest the potential for some geological consistencies between Skye Gold and the nearby high-quality Aurora Tank and Gold Bore projects, which is highly encouraging”.

“We are already putting in place plans to commence exploration at the Skye Gold Project in QI, pending the completion of due diligence and receipt of relevant approvals. We will also be running a simultaneous exploration program at our Circle Valley Gold Project just south of Norseman in WA, so we are anticipating a steady flow of exploration updates from across these projects over the coming months.

“Finally, Latitude remains committed to reviewing additional project acquisition opportunities, both domestically and overseas, having maintained the financial flexibility to move quickly should a compelling opportunity be presented to the Board.”