NickelX acquires Penny South Gold Project in Australia

Highlights

• Penny South Gold Project is located in world class gold district and ~550 m south of one of Australia’s highest-grade producing gold mines, the Penny West/North Gold Mine, owned and operated by Ramelius Resources Limited:
  • The Penny West mine produced 154 000 t at 18 g/t Au (89 000 Au) in the early 1990’s.
  • The initial Penny North deposit of 569 000 t at 16.8 g/t (306 000 oz) was discovered by Spectrum Metals Limited and subsequently subject to a takeover by Ramelius for >US$200 million during 2020, with the deposit now being mined and extended.
• The Penny West Shear, which hosts the Penny deposits, continues south into the Penny South Project (E57/1045) with ~2.5 km of strike contained in E57/1045.
• Average historical drill hole depth across E57/1045 is ~42 m, with only 18 holes deeper than 100 m and 7 holes deeper than 200 m, with no diamond drilling.
• Historic drilling within E57/1045 has encountered various significantly anomalous intersections of gold mineralisation.
• Review of all available data to generate high priority drill targets underway.

Commenting on the acquisition, Managing Director Peter Woods said: “We are extremely pleased to have reached an agreement for the acquisition of the Penny South Project. The addition of this exciting gold exploration asset next door to one of the highest-grade gold mines in production in Western Australia, and in a district seeing current M&A activity, greatly enhances our existing portfolio. Given the minimal deeper drilling and lack of diamond drilling, it is the Company’s view there may be substantial value to be unlocked at depth and we are eager to execute a path forward to test the theory as the momentum for gold continues.”

Read the article online at: https://www.globalminingreview.com/mining/03092024/nickelx-acquires-penny-south-gold-project-in-australia/