Primary Gold has further expanded its landholding at the Coolgardie project with the acquisition of a central tenement at the project located in the goldfields of Western Australia.
Shares in the company gained as much as 7 per cent on the news with the tenement acquisition increasing its holding at the project to over 3,000 hectares.
Importantly, the tenement (P15/6071) is considered prospective for gold mineralisation due to its positioning in a similar geological and structural setting to the Tycho gold deposit.
The tenement occurs in a similar sequence of folded mafic to ultramafic flows to Tycho, which lies 900 metres to the north.
Tycho, along with MacPhersons and A-Cap, are to be the focus of mining operations at Coolgardie project during the current quarter.
“While mining ramps-up at the Coolgardie project, Primary is also focussing on targeted exploration of its tenements with a clear objective to increase mineral inventory and mine life of the Project,” Primary Executive Chairman and Managing Director Garry Mills said.
“The highly prospective acquisition of P15/6071 forms an important part of this strategy and further confirms Primary’s intent and ambition to expand our landholding around our wholly-owned Coolgardie project.”
The tenement also contains the Queenslander prospect which was historically mined at the turn of the 20th century.
Primary will now undertake a program of reviewing and validating historical geological data. Based on the review, Primary will identify priority targets for integration into its 2018 exploration program at the project.
Its been a busy week for Primary Gold after it announced on Wednesday it had received final approval to begin mining at Coolgardie project with mining expected to begin in the current quarter.
Shares in the company (ASX:PGO) were last trading at 4.5c, up 2.3%, after earlier hitting an intraday high of 4.7c.