ASX listed Terrain Minerals has offloaded its Great Western gold project near Leonora to ASX-listed Red5 under an option agreement that will see the company receive $2.2 million worth of Red5 scrip.
The company has already pocketed $300k from Red5, who purchased the option for the Great Western project in November last year. Terrain will use the funds to launch exploration programs at its Wild viper and Smokebush projects.
Last week, Terrain said it is looking to kick of a significant first pass geochemical soil sampling program across Wild viper, which wraps around the outskirts of the Great Western gold project.
It will collect approximately 400 to 500 samples across three separate targets that the company anticipates will throw up a grab bag of drill ready targets.
Terrain is also looking to work on its recently acquired Smokebush gold project near Yalgoo and is planning on work that includes drilling programs at five high ranking targets.
Terrain’s ex-Great Western gold project is situated on a granted mining lease containing a mineral resource of 709,000 tonnes grading a solid 2.72g/t gold for just under 63,000 ounces.
The deal for Great Western maintains Terrain’s exposure in the area courtesy of Wild viper and a stake in Red5.
If Terrain makes a discovery at Wild viper or Red5 manage to turbo charge the resource at Great Western, both companies will benefit from their proximity to each other and Terrain will have further upside with its holding in Red5.
Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au
By Matt Birney
