Monterey Minerals Inc. takes immense pleasure in announcing that it has signed a Letter of Intent to buy Gold River Resources Pty Ltd of Perth, Australia. Gold River Resources possesses six highly potential tenements in the Pilbara Basin covering 322 km 2.
Gold River property locations in relation to Monterey Minerals. (Image credit: Monterey Minerals Inc.)
As mentioned in the LOI, the Company will purchase all the shares of Gold River Resources for 11,000,000 common shares of Monterey. The Company will try to complete a definitive purchase and sale agreement in Q2 2019.
With the signing of the LOI with Gold River Resources, our land position in the Pilbara Basin will now increase to 992 sq.km. We are confident that our land package offers us the best opportunities to add value for our shareholders. Upon closing this deal, we will focus on creating an exploration plan for our Pilbara property portfolio. We will be releasing more details prior to the second half of 2019.
James Macintosh, President and CEO, Monterey Minerals Inc.
The main features of the tenement package included in the LOI are given below:
Tenement E47/3958 and E47/3959, covering around 218 km 2, abuts Pacton Gold to the west and is just north of Novo Resources. In the vicinity, E47/3958 is 7 km to the north of De Grey Mining’s Withnell Mining Centre that holds more than 445,000 oz of gold (Measured and Indicated) with another 429,000 oz (Indicated) in a bunch of deposits (ASX:DEG - 2018 Annual Mineral Resources Statement). Withnell is also the location of De Grey’s projected gold processing facility (DEG March Quarterly Report 2019). There is a potential quartz vein at the center of the property that can be traced for over 400 m at surface with evidence of artisanal mining. Pacton Gold’s exploration in the neighboring region in similar-aged granitoids has identified incidents of swarms of quartz veins, most of which hold gold mineralization.
Tenement E47/3960, covering around 20 km 2, abuts Kairos Minerals’ Croyden project, which holds gold with conglomerates, and is just northwest of Pacton Gold’s tenement E47/3905. The Hardy Formation occurs within 1 km of the western boundary of the lease and may also crop up within E47/3960. The conglomerates of the Hardy Formation have been targeted traditionally for gold and uranium mineralization.
Tenement E45/5180, covering almost 6 km 2, abuts a Novo Resources tenement to the northwest and is near to Novo Resources’ Talga Talga Mining Centre, situated 20 km north of the town of Marble Bar. The Talga Talga Mining Centre and E45/5180 are located within the greenstone belts that surround the Mt Edgar Granitoid Complex. The historic workings at Talga Talga were mined until 1940 with 1614 oz of gold mined from 1432 tonnes of ore for an average grade of 35.1 g per tonne of gold (ASX:TLG - Talga Gold Limited Prospectus).
Tenements E46/1243 is a single block tenement of around 3 km 2 located within the Middle Creek mineralized corridor of the Mosquito Creek Formation. The Middle Creek mineralized corridor is established to hold more than 745,000 oz of gold (Measured and Indicated) with another 410,000 oz (Inferred) in a number of deposits presently being mined by Millennium Minerals, who are targeting gold production of 90,000 oz to 100,000 oz in 2019 (ASX:MOY - 2018 Ore Reserve and Mineral Resource Statement). E46/1243 is located very close to a major structural offset of the Blue Spec Fault, a well-mineralized structure that covers the Blue Spec Gold Mine.
Tenements E46/1244 comprises approximately 32 km 2 and is 5 km south of the Mosquito Creek Formation. The ground has not been explored and the only earlier exploration was regional stream sediment sampling and bulk sampling for diamonds by DeBeers Australia Ltd. The Sandy Creek Cu-Pb-Zn-Ag (copper, lead, zinc, and silver) prospect is located 7 km to the east of the project.