Adelong Gold Uncovers New High-Grade Targets and Seals Key Farm-In Deal
Adelong Gold Limited's December 2024 quarterly report reveals promising new drill targets near the Adelong Mill and a binding farm-in agreement with Great Divide Mining to accelerate gold production.
- New soil sampling identifies high-grade gold targets northwest of Adelong Mill
- Great Divide Mining to acquire up to 51% stake through staged farm-in agreement
- Cosmo Gold project sold to Sarama Resources, boosting Adelong's asset portfolio
- Brazilian lithium and rare earth exploration programs show encouraging early results
- Board refresh with new Non-Executive Director Kurt Lingohr joining
New Drill Targets Highlight Resource Expansion Potential
Adelong Gold Limited’s December 2024 Quarterly Activities Report spotlights a successful soil sampling campaign at its flagship Adelong Gold Project in southern New South Wales. The program identified new drill targets approximately 500 metres northwest of the Adelong Mill, along strike from the Currajong gold deposit. Among 46 samples, two returned gold grades exceeding 1 gram per tonne, peaking at 3.03 g/t, while 30% of samples contained more than 0.1 g/t gold. These results suggest proximity to significant mineralisation and reinforce the potential for resource expansion in key areas including Challenger, Currajong, and Caledonian.
Strategic Farm-In Agreement with Great Divide Mining
In a pivotal development, Adelong signed a binding farm-in agreement with Great Divide Mining (GDM) for a staged acquisition of up to 51% in the Adelong Gold Project. GDM will invest $300,000 for an initial 15% stake following successful due diligence, which was completed post-quarter. The agreement stipulates that GDM will earn an additional 36% interest upon achieving first gold production from the refurbished Adelong Gold Plant within 12 months. This arrangement positions GDM as the operator, leveraging its operational expertise to fast-track the plant’s refurbishment and restart gold production, while Adelong retains a 49% interest with no cash contributions required until production commences.
Cosmo Gold Transaction Strengthens Portfolio
Adelong also completed the sale of its Cosmo Gold project to Sarama Resources, receiving 25 million fully paid ordinary shares and 7.5 million options in Sarama valued at approximately $750,000. This transaction settles outstanding loans and provides Adelong with ongoing exposure to Sarama’s high-quality gold assets, enhancing its financial position and aligning with its growth strategy in both gold and critical minerals sectors.
Advancing Critical Minerals Exploration in Brazil
Beyond Australia, Adelong’s early-stage exploration in Brazil’s Paraíba Province and Minas Gerais Lithium Valley continues to show promise. The Phase 2 program at Paraíba completed stream sediment and rock chip sampling, identifying lithium-bearing pegmatites and rare earth element pathfinders. Follow-up campaigns are planned to refine these anomalies. Meanwhile, reconnaissance at the Santa Rita do Araçuaí Lithium Project has highlighted key areas for further exploration, underpinning Adelong’s strategic diversification into critical minerals.
Corporate Developments and Financial Position
On the corporate front, Ian Hastings retired as Non-Executive Director after a significant tenure, and Kurt Lingohr joined the board, bringing extensive experience in business strategy and mining investments. Financially, Adelong reported a cash position of $209,000 at quarter-end, with further funding expected from the GDM farm-in agreement and the value of Sarama shares held. The company is positioned to be free carried on the Adelong Project for the next 12 months, reducing near-term capital requirements as it advances toward production.
Overall, Adelong Gold’s December quarter report signals a company on the cusp of transformation, with new exploration targets, strategic partnerships, and a strengthened asset base setting the stage for near-term production and long-term growth.
Bottom Line?
Adelong’s strategic moves and exploration successes set the stage for a critical 12 months as it targets first gold production and resource growth.
Questions in the middle?
- Will the planned drilling confirm and expand the newly identified high-grade gold zones near the Adelong Mill?
- Can Great Divide Mining meet the 12-month timeline to restart gold production and secure its 51% stake?
- How will Adelong balance advancing its Australian gold assets with growing its critical minerals footprint in Brazil?