West Cobar Metals completes acquisition of high-potential Mystique gold project in WA
West Cobar Metals (ASX: WC1) has completed its strategic acquisition of the promising Mystique gold project 225 kilometres south-south-east of Kalgoorlie in Western Australia.
Located in the E28/2513 exploration licence within the Albany-Fraser province, West Cobar considers Mystique highly prospective for orogenic gold deposits.
The company has now successfully completed its due diligence for the project after signing binding conditional agreements for the acquisition of IGO’s 100% interest in the tenement in early March.
Complementary addition
Managing director Matt Szwedzicki said the company’s addition of Mystique complemented its existing copper-gold exploration project in the Fraser Range area of WA.
“The tenement comprises a key land area with exceptional and immediate potential for both shallow saprolite-hosted and large-scale basement-hosted gold deposits,” Mr Szwedzicki said.
“We have identified two high-priority targets which justify immediate exploration drilling.”
Systematic exploration
Mystique benefits indirectly from the results of seven years of systematic exploration work by IGO on licences to the north and direct expenditure of approximately $380,000 on E28/2513 that included gravity surveying, moving loop electromagnetic work and aircore drilling.
Recent exploration in adjoining tenements by a joint venture between IGO and Rumble Resources (ASX: RTR) identified outstanding gold intercepts in saprolite and bedrock, in particular at the Themis prospect just north of the E28/2513 tenement boundary.
However, Mystique remains relatively unexplored, with most of the area covered by 30m or more of transported Eocene sediments and little surface expression of geology or mineralisation.
Unlisted options issued
West Cobar issued a total of 5 million unlisted options to IGO as consideration for the transfer of its interest in the tenement.
The new options have an exercise price of $0.008 and expiry date of three years from issue.
A net smelter royalty is currently in place with respect to E28/2513 at a rate of 1.5% for gold and 1% for all other minerals.