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Barton Gold Granted Five Additional Exploration Tenements at New Wudinna Project

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By Imelda Cotton - 
Barton Gold ASX BGD Five Additional Exploration Tenements Wudinna
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Barton Gold Holdings (ASX: BGD) (OTCQB: BGDFF) has been granted five new tenements for its recently acquired Wudinna gold project along South Australia’s Eyre Peninsula.

Barton will receive the new licences – which it will now refer to as exploration licences (ELs) 7074, 7075, 7076, 7077 and 7078 –as part of the Wudinna final settlement, with the company also set to acquire gold and other rights over EL 7074.

Barton and Wudinna vendor Cobra Resources will complete escrow and orderly market agreements under which Barton will issue $800,000 worth of shares to Cobra.

Project Acquisition

Barton made the move to add to its strong gold and silver position with a $15 million bid in June for the 279,000-ounce Wudinna asset.

The company received approval from Cobra’s UK shareholders not long after this, giving Barton binding rights to the project’s ownership.

Cobra will retain mineral rights for certain rare earths and other elements across the tenements included in the sale, and Barton will acquire all other mineral rights.

Cobra shareholders will continue to hold a gold exposure through Barton while it focuses on its core area of development interest in rare earths.

Valuable Addition

Barton managing director Alexander Scanlon said the new tenements would add considerable value to Wudinna.

“We are pleased to be progressing this highly-valuable addition to our South Australian gold development platform and thank the South Australian government for its support,” he said.

“This is a precedent-setting transaction under the state’s new regulatory framework which permits tenement subdivisions, and we hope it will serve as a model for increased investment in mining assets across the state.”

Wudinna Resource

Wudinna houses the Barnes, White Tank, Clarke and Baggy Green discoveries.

The project is located approximately 200 kilometres south-east of Barton’s Tunkillia gold development in the north-central area of the Eyre Peninsula.

Barton expects the project will add 5.81 million tonnes at 1.5 grams per tonne gold to its South Australian portfolio, taking the company’s total gold endowment in the region to 2.14Moz (78.9Mt at 0.85g/t).