Australian miner Accelerate Resources Ltd(ASX:AX8) has entered into a binding term sheet with Canadian company Currie Rose Resources Inc. to acquire up to 100% of the historic Rossland Gold Project, in British Columbia.
The Project covers approximately 3,000 Ha and hosts the same geological structures as the adjacent high grade Le Roi Mines that produced more than 2.7 million ounces of gold, 3.5 million ounces of silver and 71 tonnes of copper between 1894 and 1941.
The historic mining operations were the birthplace of Consolidated Mining and Smelting Company, (COMINCO) which was bought out by Teck, Canada’s largest diversified resource company. Teck still maintains an interest in the area, and operates the Trail Zinc Smelter, one of the world’s largest, 10km from the Rossland Gold Project
Non-Executive Chairman, Grant Mooney, saidhistorical workings and mine records indicate payable veins from these mines, extend into the Project area, and the host rock for gold is present and continuous.
Mr Mooney said the Project provides an advanced brownfields play with little modern exploration due to previous fragmented ownership and tenure and now with consolidated ownership and evidence from the adjacent mining records. Accelerate will be able to apply modern geophysical, goechemical and drilling techniques to thoroughly test the strike extent of high grade deposits that run up to the project boundary.
“The Rossland Gold Project represents a highly leveraged, low-cost opportunity to acquire an advanced high-grade exploration play. With early success, this could rapidly evolve into a development proposition in a low risk jurisdiction with significant surrounding infrastructure and major gold players.
“Importantly we are able to tap into an established, high calibre technical and support team that is ready to mobilise to drill a series of high impact targets over the next 6 to 8 months with significant ongoing news flow.
“This deal structure mitigates the upfront risk to Accelerate shareholders and protects the balance sheet whilst giving significant exposure to successful exploration results.
“Upon completion of this capital raising, the company will be well funded to rapidly test its high-grade gold targets in Canada and Western Australia.”
Mr Mooney said Accelerate has already identified a number of high priority drill targets to test over the nextsixto12 months.
There are also numerous historic prospecting pits and several adits to be mapped and sampled for future drill testing.