Meteoric Resources seals Brazilian gold acquisition

Meteoric Resources (ASX: MEI) has executed a share sale agreement with Crusader Resources (ASX: CAS) for the purchase of the Juruena and Novo Astro gold projects in Brazil.

Last month, Meteoric announced it was acquiring the gold assets from Crusader for a total of $3 million, split into various cash and share milestone payments.

Once the acquisition has been completed, Meteoric will immediately pay $1 million in cash and 50 million shares, which will be escrowed for 12 months.

The remaining cash and shares will be handed over upon reaching various milestones.

Providing an update to shareholders today on the deal, Meteoric said all material conditions had been met with completion of the acquisition set to occur following transfer of project ownership to the company. Meteoric expects the transfer process to be completed shortly.

Meteoric Resources managing director Dr Andrew Tunks said it was now full steam ahead for the Brazilian gold projects with drilling set to commence at Juruena in the current quarter.

“Our operations manager Peter Sheehan and myself will be travelling to Brazil in the coming weeks to work alongside the Brazilian technical team and our exploration management group, Target Latin America, to commence resource definition and extension drilling at the two most advanced targets, Dona Maria and Querosene which contain a combined high-grade JORC 2012 Mineral Resource Estimate of 436,000t at 14.7 grams per tonne gold for 205,000 ounces gold,” he said.

Full steam ahead

Both projects are in Brazil’s Alta Floresta Belt, which hosts major miners including Anglo American and Vale and is the country’s “most desirable gold exploration destination”.

Juruena has a current resource of 1.3Mt at 6.3g/t gold for 261,000oz of gold.

To facilitate rapid exploration and development, Juruena already hosts site offices, accommodation for up to 60 people, a core shed and a 1,000m dirt airstrip.

The project is also accessible by well-maintained roads and has intermittent barge access along the Juruena River.

Meanwhile, over at Novo Astra, Dr Tunks said the project hosts 15sq km of old mine workings that have never been drilled.

However, 13 rock chip samples taken over the anomaly return in excess of 10g/t gold, with a peak value of 264g/t.

Work at Novo Astro will begin with ground-based geophysical surveys.

Meteoric’s shares jumped 8.3% to $0.013 upon market opening.