What's Happening?
Corazon Mining has entered into a binding agreement with RBH Mining to acquire an 80% interest in the Feather Cap gold project, located in Western Australia's Gascoyne region. The project covers 154 square kilometers and includes four exploration licenses and one mining lease. Corazon plans to conduct a detailed analysis of historical exploration data to refine drill targets, focusing on the Durack East and Wembley areas. The agreement involves an initial payment of A$50,000 in cash and shares, with a commitment to spend at least A$250,000 on exploration during the 12-month option period. If the option is exercised, Corazon will make further payments totaling A$1.6 million over four years.
Why It's Important?
This agreement is significant for Corazon Mining as it aligns with their strategy to expand their presence in the Gascoyne region, a proven mineral province. The Feather Cap project is strategically located near existing gold resources, which could enhance Corazon's exploration and production capabilities. The deal is described as 'highly capital-efficient,' allowing Corazon to accelerate exploration while maintaining financial stability. The project has shown promising historical drilling results, indicating potential for high-grade gold deposits, which could lead to increased production and profitability for Corazon.
What's Next?
Corazon plans to conduct a detailed analysis of historical exploration data to refine drill targets, prioritizing the Durack East and Wembley areas. The company will focus on consolidating a significant land package in the region, potentially leading to further exploration and development activities. If successful, this could result in increased gold production and further investment in the region.
