Augustus Minerals increases gold portfolio with Music Well acquisition in WA’s Eastern Goldfields

Augustus Minerals (ASX: AUG) has moved to acquire a significant exploration package in one of Western Australia’s premier gold-producing areas.

The company is acquiring ten granted exploration licences in the Eastern Goldfields region of WA via a binding share purchase agreement for 100% of the issued capital in Music Well Gold Mines (MWGM).

MWGM holds the exploration licences, located 35 kilometres north of the historic mining town of Leonora, comprising the Music Well gold project and two additional applications that would bring the total tenement package to 1,345 sq km.

Complementary assets

General manager of exploration Andrew Ford said adding a gold-focused exploration project of this size complements the company’s copper, base metals and uranium focus at the Ti Tree Shear project in WA’s Gascoyne region.

The land package area is surrounded by a number of leading gold producers, including Northern Star (ASX: NST) and its 4.2-million-ounce Thunderbox mine, along with Vault Minerals’ (ASX: VAU) 4.1Moz King of the Hills mine.

“The acquisition of such a large prospective gold exploration package in close proximity to operating mines […] is a significant coup for Augustus,” he said.

“With the gold price now exceeding A$4,000/oz, it provides Augustus shareholders with significant exposure to future discovery in one of the world’s greatest gold provinces.”

Previous work

MWGM initiated the consolidation of tenements and commenced field work, on-ground exploration and targeting studies in November 2019.

Between then and November 2024, the company consolidated the tenement package to its current size and identified priority targets for follow-up exploration work including air core, reverse circulation and diamond drilling.

Extensive geophysics, gravity, soil sampling and rock chipping have already been completed within the area, with data validation and target prioritisation underway.

High-priority targets

A number of high-priority targets have been identified using MWGM’s “Three-Schema Gold Prospectivity Model,” which incorporates and utilises classical structural mapping techniques, geochemistry such as ultra-fine-plus soil sampling, rock-chip sampling and advanced geophysics.

Geological studies were completed with assistance from a group of technical specialists and included the use of high-resolution airborne magnetics, gravity and radiometric data.

Augustus will pay a deposit of $75,000 on the date of the agreement’s execution, with an additional $200,000 payable upon completion.