Eastern Resources Targets 80% Stake in High-Grade Marengo Gold Project

A Strategic Entry into Queensland’s Gold Belt

Eastern Resources Limited (ASX, EFE) has announced a significant step in its exploration strategy by entering into a farm-in agreement to earn up to an 80% interest in the Marengo Gold Project, located in Queensland. This project lies within a mineral-rich belt that hosts some of Australia’s most notable gold deposits, including Mt Carlton, Pajingo, and Charters Towers, collectively accounting for over 20 million ounces of gold.

The Marengo Goldfield itself boasts a rich history dating back to the 1870s, with 37 historical gold workings and mines. Despite this legacy, modern exploration has been limited, presenting Eastern Resources with a compelling opportunity to apply contemporary techniques to a proven gold system.

Promising Historical Data and Exploration Potential

Historical surface sampling has revealed exceptional high-grade gold assays, with rock chip samples reaching up to 149.8 grams per tonne (g/t) gold, alongside significant silver and copper values. Reverse circulation drilling conducted in the 1980s and more recently in 2018 has returned encouraging shallow intersections, including 4 meters at 2.05 g/t gold and a standout 1 meter at 7.8 g/t gold from 13 meters depth.

Geochemical and geophysical surveys have identified multiple gold targets over an area exceeding 10 square kilometers, highlighting the potential scale of mineralisation. The project’s geology is characterised by intrusion-related gold-copper systems, with mineralised hydrothermal veins associated with granite intrusions, a setting known to host economic deposits.

Commercial Terms and Exploration Outlook

Under the farm-in agreement with BGM Investments Pty Ltd, a subsidiary of Rockfire Resources plc, Eastern Resources will earn its interest by committing to a minimum $1.5 million exploration expenditure over three years. The earn-in is staged, starting with $250,000 in the first year, followed by $500,000 and $750,000 in subsequent years. Notably, there is no upfront payment, and Eastern Resources will have full management control and sole funding responsibility during this period.

Should Eastern Resources define a JORC-compliant Mineral Resource Estimate of at least 500,000 ounces of gold at a minimum grade of 2.5 g/t, a milestone payment of AUD 1 million to Rockfire will be triggered, payable in cash or shares. This arrangement aligns incentives and underscores the project’s potential value.

Positioning for Growth in a Competitive Gold Landscape

Eastern Resources’ Executive Director, Myles Fang, emphasised the strategic nature of the acquisition, highlighting the low-cost entry into a world-class mining jurisdiction with significant upside potential. The proximity to existing processing infrastructure near Bowen further enhances the project’s attractiveness by potentially reducing development lead times and capital requirements.

Looking ahead, Eastern Resources plans to build on the historical data with further mapping, sampling, and drilling to better delineate mineralisation and advance the project towards resource definition. While the historical data provides a strong foundation, the company acknowledges that further exploration is required to confirm the extent and economic viability of the gold system.