Evergold Secures 1,800 Hectares in Leonora Goldfields for A$250,000
Evergold Minerals has secured 100% ownership of the Randwick Tenements in Western Australia's Leonora Goldfields, adding significant exploration ground with minimal upfront cost. This strategic move enhances their position in a historically rich gold region with promising potential.
- Acquisition of two mining leases and ten prospecting licences covering ~1,800 hectares
- Low upfront consideration of A$250,000 in shares, pending shareholder approval
- Contingent milestone payment tied to discovery of 100,000 ounces gold resource
- Immediate access granted for exploration activities
- Consolidates Evergold’s presence in the Mertondale Goldfield with historic high-grade production
Strategic Expansion in Leonora Goldfields
Evergold Minerals Limited (ASX – EG1) has taken a decisive step to bolster its gold exploration portfolio by acquiring 100% of the Randwick Tenements, located approximately 45 kilometres northeast of Leonora in Western Australia. This acquisition includes two granted mining leases and ten prospecting licences, collectively covering around 1,800 hectares within the highly prospective Mertondale Goldfield.
The Leonora region is renowned for its rich gold mining history, and the Randwick area itself produced roughly 11,000 ounces of gold at an impressive average grade of 25 grams per tonne during the early 1900s. Despite this, the Randwick mining centre has seen relatively limited modern exploration, presenting a compelling opportunity for Evergold to uncover new resources.
A Low-Cost, High-Potential Deal
The terms of the acquisition reflect a capital-efficient approach. Evergold will issue shares valued at A$250,000 to Kin East Pty Ltd, a subsidiary of Patronus Resources, subject to shareholder approval. Additionally, a contingent cash payment of A$250,000 is payable only if a mineral resource of at least 100,000 ounces of gold at a grade of 1 gram per tonne is announced on any of the tenements.
Technical Director Glenn Grayson emphasised the strategic nature of the deal, describing it as a "classic high-value, low-cost consolidation play". Immediate access to the tenements allows Evergold to commence heritage surveys and geochemical sampling without delay, accelerating the timeline for exploration and potential resource delineation.
Consolidating Presence in a Tier-1 Gold District
This acquisition significantly expands Evergold’s landholding in the Leonora district to 81 square kilometres, reinforcing its footprint in a Tier-1 mining jurisdiction. The company’s existing Leonora Goldfields Project already hosts a JORC Inferred resource of 63,000 ounces of gold, with high-grade intercepts recorded in previous drilling campaigns.
By integrating the Randwick tenements, Evergold not only gains access to historically productive ground but also positions itself to leverage modern exploration techniques in an area with substantial untapped potential. The move aligns with the company’s broader strategy of growing its portfolio through targeted acquisitions and efficient capital deployment.
Looking Ahead
With exploration activities set to begin promptly, market watchers will be keen to see how Evergold advances its drilling programs and whether the Randwick acquisition translates into meaningful resource upgrades. The contingent milestone payment structure underscores the company’s confidence in the project’s potential while mitigating upfront financial risk.
Bottom Line?
Evergold’s Randwick acquisition marks a savvy expansion in a historic gold belt, setting the stage for potentially transformative exploration results.
Questions in the middle?
- What initial exploration results will Evergold report from the Randwick tenements?
- How soon might a mineral resource estimate meeting the milestone criteria be announced?
- What impact will this acquisition have on Evergold’s overall valuation and investor sentiment?
