Bryah Resources eyes Canadian expansion with Golden Pike gold project option
Western Australian gold explorer Bryah Resources (ASX: BYH) has moved to add a new Canadian asset to its portfolio through an option to acquire 100% of the Golden Pike project in New Brunswick.
Bryah has signed an option term sheet to acquire the project from listed Canadian company Globex Mining Enterprises.
The company will now undertake full due diligence on the project to decide whether to proceed with the acquisition.
Global search
Bryah chair Ian Stuart said the move to add Golden Pike to the company’s suite of Western Australian gold assets follows a global search.
“The company has been evaluating projects from around the world, aiming to select one with the most potential for value addition for our shareholders,” Mr Stuart said.
“With the gold price currently around A$5,000 per ounce and ongoing global uncertainty expected to support strong prices, this gold project in the mining-friendly Canadian jurisdiction of New Brunswick presents an exciting opportunity.”
“The historical resource provides a solid foundation, with the potential to upgrade and increase the gold resource with additional drill targets to be explored.”
Historical resource
Previous exploration at Golden Pike identified a historical inferred resource estimate of 214,800 tonnes at 9.6 grams per tonne, containing 66,300oz of gold.
Bryah believes the project has significant upside, with previous work uncovering high-grade boulder rock chips up to 244g/t in a deposit that remains open in multiple directions.
The project is located in a mining region that has seen historic potash, zinc and lead mining, with current exploration in the area focused on gold, antimony, tin, indium and zinc.
Sufficient funds on hand
Bryah says it has sufficient funds on hand to make required consideration payments that would become due on execution of a formal sale agreement.
This includes $680,000 of cash payments for the acquisition and $3,000,000 for minimum expenditure requirements over four years.
The company said it would need to raise additional funds in accordance with the staged payments outlined to effect completion of the transaction.
If it elects to proceed with the acquisition, Bryah will prepare a scoping study covering whether it will use open pit or underground mining, as well as all requisite approvals and the most appropriate shipping options for the project.