Advance Metals Limited has moved to secure full ownership of its high-grade Myrtleford and Beaufort Gold Projects in Victoria, following strong drilling results and metallurgical testwork at the Happy Valley deposit.
The Company has amended its agreement with 1548043 B.C. Ltd, previously Serra Energy Metals Corp, to acquire the remaining 20 % interest in the projects. Advance had previously agreed to acquire an 80 % interest for C$3.0 million, with the amended agreement increasing total consideration for 100 % ownership to C$4.0 million.
The remaining consideration will be paid in staged tranches over three years, in either AVM shares or cash at Advance’s discretion. The agreement also includes a 1 % net smelter return royalty over future gold production from the projects.
The amended agreement follows a series of successful exploration programs at Myrtleford, including high-grade drilling results from Happy Valley such as 8.2 meters at 28.8 g/t gold from 186 meters, including 3.4 meters at 68.2 g/t gold, and 7.5 meters at 55.0 g/t gold from 178.1 meters, including 1.3 meters at 305.8 g/t gold.
Recent metallurgical testwork at Happy Valley has also returned gravity gold recoveries of up to 96.1 %, supporting the potential for low-cost gravity processing options in the future. The first modern metallurgical testwork completed on the Happy Valley mineralization showed total gold recoveries ranging from 91.7 % to 96.1 %, with concentrate grades between 1,483 g/t and 2,058 g/t gold.
Further drilling at Happy Valley has continued to confirm high-grade mineralization, including 1 meter at 22.3 g/t gold from 95.7 meters, including 0.2 meters at 108.5 g/t gold, in hole AMD026. Deeper drilling also returned 6.6 meters at 1.8 g/t gold from 496.8 meters, including 0.6 meters at 12.6 g/t gold, in hole AMD023.
Adam McKinnon, Managing Director and CEO commented:
“Moving towards 100 % ownership of Myrtleford and Beaufort is a logical and value accretive step for Advance following the exploration success we have delivered at Happy Valley.”
“The combination of ultra-high grade drilling results, excellent gravity gold recoveries and multiple untested historical trends gives Advance full exposure to what we believe is a compelling district scale gold opportunity in the Victorian Goldfields.”
“The amended agreement has been structured over three years and allows Advance to retain flexibility over whether payments are made in shares or cash. This provides the Company with a clear pathway to secure full ownership while preserving balance sheet flexibility.”
“With ongoing structural modelling, pending assays, regional mapping and sampling and further drill targeting underway, Myrtleford is emerging as an important growth asset within Advance’s high grade precious metals portfolio”
Advance said assay results remain pending for two further diamond holes at Happy Valley, with structural modelling underway to support future drill targeting.
The Company has also commenced regional mapping and rock chip sampling across selected historical workings at Myrtleford and Beaufort, including along the Magpie-Barwidgee trend, where no modern drilling has been completed.