Latin Resources (ASX: LRS) has signed a binding agreement to earn up to 75% in the Yarara gold project east of Albury, New South Wales, in the highly sought-after Lachlan Fold Belt.
The project area covers 50km of strike and contains 20 dormant, historical high-grade gold mines as well as numerous old workings.
This strike zone is on the Yarara shear zone that was mined between 1877 and the 1930s, with production coming mainly from four mines: Rangatira with an average grade of 60 grams per tonne gold, Just in Time (average 30g/t), Perseverance (45g/t) and Four Mile Creek and Mountaineer (45g/t).
With its projects in Argentina and Peru being funded by large mining companies in joint ventures, Latin Resources is now focusing on near-term gold exploration and development on the Lachlan belt, one of the hottest of hot spots for exploration in Australia at present
The farm-in is with the unlisted Mining and Energy Group.
Three principle areas of exploration interest
Latin managing director Chris Gale described the farm-in joint venture as “an outstanding entry into one of Australia’s premier gold jurisdictions to create strong shareholder value”.
“The Yarara project presents an excellent opportunity to secure a significant and highly prospective gold project which has not benefited from modern exploration techniques,” he added.
The areas of immediate interest to Latin are Yarra Reefs (to the north in the strike zone), which hosts structurally located gold mineralisation in sediments; Carboona (centre) where known mineralisation includes lead, tin, tungsten, gold and silver; and Ournie (to the south), the Ournie goldfield containing historical gold and silver workings.
Latin said the Ournie field (including the old Peep-O-Day, Discovery and Hidden Treasure mines) has gold possibly analogous to the Bethanga gold workings in Victoria.
Meanwhile, June is turning out to be an eventful month for Latin.
Last week, the company announced it had inked a deal with Argentinian investment group Integra Capital, which will see aggressive exploration work unleashed on the company’s Catamarca lithium pegmatite projects.
By spending US$1 million (A$1.4 million) on exploration and development in Argentina, Integra will earn a 50% interest in the project.
The investment firm also has an option to take a 10% cornerstone stake in Latin and become the junior’s largest corporate investor.
Latin is also progressing its Ilo copper project in Peru in partnership with Vancouver-based First Quantum Minerals and has additional lithium ground in both Argentina and Brazil.
It is working, too, on its Noombenberry halloysite kaolin project near Merredin, Western Australia.