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Evergreen Lithium pivots to gold with acquisition of Leonora Goldfields Project in WA

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By Colin Hay - 
Evergreen Lithium ASX EG1 acquires Leonora Goldfields Project
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Evergreen Lithium (ASX: EG1) is making what it describes as a “transformational” move with its acquisition of the Leonora Goldfields Project (LGP) in Western Australia’s prolific central gold district.

The company was previously best known for its focus on exploration activities at its highly prospective Bynoe lithium project in the Northern Territory.

Evergreen’s geology team is already following up ground work undertaken by previous groups at the LGP, with the primary focus to extend known mineralisation and enhance the current mineral resource estimate.

Emerging gold producer

Chair Simon Lill said the move marks a significant step in the company’s objective to transform into an emerging gold producer.

“Acquisition of the LGP is a pivotal moment for Evergreen, ushering in a strategic transformation as the company positions itself firmly in the burgeoning gold sector,” Mr Lill said.

“With an inferred resource of 63,000 ounces of gold and an exploration target of up to 592,000oz, the project presents exceptional development and growth opportunities.”

“Our focus now is to expedite exploration and development, ensuring pathways to production and cash flow are realised optimally.”

Optimal timeline

At the same time, Evergreen is refining an optimal timeline for commissioning mining operations.

This includes converting five prospecting licences to mining leases – bringing the total to seven out of 15 tenements – with the previous owner submitting the licence applications during 2021 and 2022.

The company will now oversee the application process, including navigating the Native Title requirements.

Key prospects

Evergreen has identified several key prospects for ongoing development work, with Craig’s Rest, Victor Bore and Great Northern each hosting significant historical workings and shallow drilling results.

The company is also following up a previously identified exploration target of up to 592,000oz of gold at 3.6 grams per tonne defined by historical data and recent drilling.

Evergreen will acquire the asset from vendor U Resource via an up-front payment of $100,000 for due diligence and the issue of 25 million fully paid ordinary shares equivalent to $1.25 million, subject to shareholder approval.