Advance Metals Ltd. has moved to secure full ownership of its Victorian gold projects following strong drilling results and exceptional metallurgical recoveries.
The company has amended its acquisition agreement with Canadian firm 1548043 B.C. Ltd., formerly Serra Energy Metals Corp., to buy out the remaining 20 per cent stake in the Myrtleford and Beaufort gold projects.
The restructured deal bumps the total consideration from C$3 million for an 80 per cent stake to C$4 million for total ownership.
To preserve balance sheet flexibility, Advance Metals will pay the remaining balance in staged tranches over three years, using either cash or ordinary shares at its own discretion.
The revised deal also incorporates a 1 per cent net smelter return royalty over all future gold production from the permits.
The decision to consolidate full ownership follows stellar diamond drilling campaigns at Myrtleford’s Happy Valley deposit.
Standout intercepts include 7.5 metres at 55.0 grams per tonne (g/t) gold from 178.1 metres, which featured a zone of 1.3 metres at 305.8g/t gold, and 8.2 metres at 28.8g/t gold from 186 metres.
Deep drilling has also confirmed that the high-grade mineralisation extends at least 500 metres below the surface.
Furthermore, initial modern metallurgical testwork on the Happy Valley ore returned exceptional gravity gold recoveries of up to 96.1 per cent. Total recoveries ranged from 91.7 to 96.1 per cent, generating concentrate grades between 1,483g/t and 2,058g/t gold. This highly responsive geology strongly supports the development of a low-cost, gravity-based processing plant.
Advance Metals Managing Director and CEO Adam McKinnon described the move to absolute ownership as a logical, value-accretive step for the company.
“The combination of ultra-high grade drilling results, excellent gravity gold recoveries and multiple untested historical trends gives Advance full exposure to what we believe is a compelling district-scale gold opportunity in the Victorian Goldfields,” McKinnon said.
Assay results remain pending for two additional diamond holes at Happy Valley. The company has also commenced regional mapping and rock chip sampling across untouched historical workings, specifically targeting the highly prospective Magpie-Barwidgee trend.