Accelerate Secures 70% Stake in Kanowna East Project with High-Grade Gold Hits
Accelerate Resources Ltd has launched a new gold-focused strategy with the acquisition of a 70% interest in the Kanowna East Gold Project, located near major gold mines in Western Australia. The move positions the company to leverage significant historical gold intercepts and nearby processing infrastructure.
- Acquisition of 70% interest in Kanowna East Gold Project near Kalgoorlie
- Significant historic gold drill intercepts including 4m @ 17.7g/t Au
- Proximity to major gold mines and toll milling facilities within 75km
- Additional 100% owned licence applied over 5km prospective strike
- Experienced gold exploration team led by former De Grey and Regis personnel
Strategic Entry into Kalgoorlie Gold Belt
Accelerate Resources Ltd (ASX:AX8) has announced a decisive pivot towards gold exploration with the acquisition of a 70% interest in the Kanowna East Gold Project, situated just 25 kilometres northeast of Kalgoorlie, Western Australia. This region is renowned for its prolific gold endowment, hosting the +60 million ounce Superpit and the +6 million ounce Kanowna Belle mine nearby. The acquisition marks a significant strategic move for Accelerate, signaling a renewed focus on gold amid favourable market conditions.
The Kanowna East Project offers a compelling exploration opportunity, underpinned by historical drilling that revealed multiple high-grade gold intercepts. Notably, reverse circulation drilling returned intercepts such as 4 metres at 17.7 grams per tonne gold, including a standout 1 metre at 42.7 grams per tonne. These results suggest the presence of substantial gold mineralisation beneath cover sediments, with potential parallels drawn to the nearby Garden Well deposit, a +3 million ounce Archean orogenic gold system.
Leveraging Historical Data and Infrastructure
Accelerate’s technical team has reinterpreted historic data to identify key gold targets at the Little Lake and Western Tiger prospects within the project area. The project’s geology is complex, with a major crustal lineament, the Mt Monger fault, bisecting a mix of ultramafic, mafic, and felsic volcanic rocks. Previous exploration focused on nickel, but recent gold anomalies have shifted attention towards gold potential.
Importantly, the project benefits from proximity to a cluster of ten operational processing plants within a 75-kilometre radius, offering cost-effective toll milling options. This infrastructure advantage could accelerate the path from discovery to production, even for modest-sized deposits, enhancing the project’s economic viability.
Experienced Leadership and Exploration Plans
Accelerate’s leadership brings deep expertise in gold exploration, with CEO Luke Meter, formerly a senior geologist at De Grey Mining, and Kevin Joyce, ex-Regis Resources Exploration Manager, spearheading the new strategy. The company has also applied for an additional 100% owned licence covering 5 kilometres of highly prospective strike along the Scotia-Kanowna dome, further expanding its footprint near Kanowna Belle.
Exploration activities are set to ramp up in early 2025, with detailed geological mapping, heritage surveys, and geophysical programs planned to refine drill targets. The company aims to test for both paleo-surface gold deposits and underlying basement mineralisation, guided by models proven successful in the region. Drilling is expected to commence in the second quarter, targeting resource definition and advancing towards a preliminary feasibility study.
Deal Structure and Future Milestones
The acquisition agreement with Metal Hawk Limited involves a signing fee of A$25,000 and the issuance of 20 million Accelerate shares subject to escrow. Metal Hawk retains a 30% free carried interest until completion of a preliminary feasibility study, after which standard joint venture dilution and royalty clauses apply. Accelerate will sole fund exploration costs until that milestone, underscoring its commitment to advancing the project.
Milestone payments are structured to reward resource growth, with payments triggered upon the announcement of JORC-compliant indicated and measured resources of 100,000 ounces and 500,000 ounces respectively. This incentivises Accelerate to aggressively pursue resource expansion while managing capital efficiently.
Outlook and Market Context
With gold prices at elevated levels in Australia, Accelerate’s entry into the Kalgoorlie gold belt aligns well with market dynamics favouring gold exploration and development. The company’s strategy to leverage existing data, infrastructure, and a seasoned team positions it to unlock value in a historically rich but underexplored terrain. However, the ultimate success hinges on forthcoming drilling results and the ability to delineate economically viable resources.
Bottom Line?
Accelerate Resources’ bold gold strategy near Kalgoorlie sets the stage for a pivotal exploration campaign that could reshape its growth trajectory.
Questions in the middle?
- Will Accelerate’s upcoming drilling confirm a Tier 1 scale gold deposit akin to Garden Well?
- How quickly can Accelerate advance from exploration to production leveraging nearby toll milling?
- What impact will gold price volatility have on the project’s development timeline and funding?
