Monax Mining has signed a binding term sheet with the owner of Mining Lease 30216 and Exploration Permit Minerals (EPM) 25370 located at Percyville, Queensland.
Under the agreement, Monax has an exclusive option to purchase ML 30216 with the issue of 4 million shares within two weeks of signing formal transaction documents; and cash payment of $500,000 upon exercise of the option which must occur within 18 months of the signing of the term sheet.
The company also has an exclusive option to purchase EPM 25370 through the issue of an ongoing net smelter royalty of 2% for all mineral sales upon exercise of the option.
Monax said laboratory assay results for 35 samples collected within ML 30216 report gold up to 62.5 g/t gold and silver up to 620 g/t.
“Gold mineralisation in the Percyville/Gilberton region is usually hosted within narrow quartz veins in the basement metamorphics of Siluro-Devonian granites. The quartz lode at ML 30216 appears different and may be related to gold mineralisation at nearby Kidston and Agate Creek, which is associated with high-level igneous activity during the Permo-Carboniferous,” the company said in a statement.
“Based on these highly encouraging sampling results, Monax intends to undertake an induced polarisation survey followed by reverse circulation drilling.”
According to the company, surface sampling results for EPM 25370 also reported copper up to 21.6%.