Minotaur Exploration has completed its due diligence and will proceed to acquire the Pyramid gold project in North Queensland from Avira Resources.
Minotaur said it was attracted to the tenement group by the very credible drilling history and an extensive geochemical database, positioning Pyramid as a compilation of advanced gold exploration prospects.
West Pyramid Range offered significant potential to expand the gold mineralisation footprint defined through historic work, especially along an 8km section of the Gettysberg Fault corridor, the company said.
The East Pyramid Range is less advanced, however Minotaur believes it offers potential for Intrusion Related Gold Systems (IRGS), similar in style to other well-known gold deposits in the district such as Mount Leyshon and Mount Wright.
The Adelaide-based company had been planning to start drilling higher grade gold shoots at Gettysberg early next month.
But it said this week’s COVID outbreak in Adelaide and consequent closure of the Queensland border to travellers from South Australia stymied that plan.
Results of first drilling at Gettysberg, now likely not until early 2021, should lead to an expanded exploration program, the company said.
Under the purchase agreement for the Pyramid project, Minotaur will pay $150,000 cash (including the $25,000 option fee already paid) and allot $100,000 in shares to Avira Resources in return for transfer of titles.
On Minotaur’s publication of a JORC Resource of at least 25,000 oz gold grading not less than 1.8g/t gold, Minotaur will pay $75,000 cash, otherwise within 24 months of completion Minotaur will allot $75,000 in shares. A royalty will also apply to the first 50,000oz of gold produced.