PERTH (miningweekly.com) – Gold miner Evolution Mining has entered into an agreement with ASX-listed Orion Minerals to acquire its Connors Arc exploration project, in Queensland.
Under the terms of the agreement, Evolution will pay an up-front cash payment of A$1.5-million, followed by two payments of A$500 000 each on the condition of certain tenement renewals and extension conditions.
Orion will also be owed a 2% net smelter return royalty on any gold produced at the project, with payment capped at A$5-million.
“The Connors Arc acquisition is in line with our strategy of building a pipeline of quality exploration projects. It represents a rare opportunity to secure a large and underexplored land position in a region where we are already operating and have significant expertise,” said Evolution VP for discovery, Glen Masterman.
Orion told shareholders that the sale of its noncore tenements was consistent with the company’s decision to place greater focus on its flagship Prieska zinc/copper project, in South Africa, and its highly prospective regional exploration projects within the region, including the advanced Jacomynspan nickel/copper/cobalt project.
Connors Arc is a large early-stage exploration project covering some 3 200 km2, located north-west of Rockhampton. The project has multiple and extensive alteration zones, which Evolution said could be indicative of multiple preserved epithermal gold systems.