LEONORA: Evergreen Lithium Limited (ASX: EG1) announced Tuesday the acquisition of the Leonora Goldfields Project in Western Australia, marking a strategic shift toward gold production. The deal positions the company to capitalize on the region’s rich mineral potential and existing infrastructure.
Key Highlights
– Resource Potential: The project holds a JORC-compliant inferred resource of 63,000 ounces of gold, with an exploration target of up to 592,000 ounces at 3.6 grams per ton.
– Strategic Location: Situated near major gold deposits like the 4-million-ounce King of the Hills and 6-million-ounce Sons of Gwalia, the project benefits from proximity to four processing plants within 80 kilometers.
– Tenement Package: Includes 13 mining leases and prospecting licenses, plus two exploration-stage tenements.
Simon Lill, chairman of Evergreen Lithium, called the acquisition “a pivotal moment” for the company. “With near-term development opportunities and significant growth potential, our focus is on fast-tracking exploration and pathways to production,” he said.
Evergreen prioritized three key prospects:
– Craig’s Rest: Historical drilling yielded high-grade intercepts, including 5 meters at 57.9 grams per ton of gold.
– Victor Bore: Recent drilling returned results such as 8 meters at 3.46 grams per ton.
– Great Northern: Notable intercepts include 4 meters at 3.68 grams per ton.
The acquisition includes:
– An upfront payment of $100,000 and 25 million Evergreen shares (valued at $1.25 million).
– Deferred and performance-based share issuances tied to resource milestones.
Evergreen plans to expedite exploration, aiming to convert prospecting licenses to mining leases and begin production as soon as possible. The company emphasized the project’s “free-dig” potential due to shallow, weathered mineralization.
Competent Person Statement: Resource estimates were compiled by Glenn Grayson, a member of the Australasian Institute of Mining and Metallurgy, in compliance with JORC 2012 standards.