Advance Metals (ASX: AVM) to move to 100% ownership of Victorian gold projects following high-grade drilling and strong gravity recoveries
Jane Morgan Management
Key Facts:- Advance Metals Limited (ASX: AVM) has amended its agreement with 1548043 B.C. Ltd to acquire the remaining 20% interest in its Myrtleford and Beaufort Gold Projects in Victoria, bringing total consideration for 100% ownership to C$4.0 million, payable in staged tranches over three years in either shares or cash.
- The move to full ownership follows high-grade drilling results at the Happy Valley deposit, including intercepts of 7.5 metres at 55.0g/t gold from 178.1 metres, including 1.3 metres at 305.8g/t gold, and 8.2 metres at 28.8g/t gold from 186 metres.
- Metallurgical testwork at Happy Valley has returned gravity gold recoveries of up to 96.1%, with total gold recoveries ranging from 91.7% to 96.1% and concentrate grades between 1,483g/t and 2,058g/t gold, supporting the potential for low-cost gravity processing.
- Assay results remain pending for two further diamond holes at Happy Valley, with structural modelling underway to support future drill targeting.
- Regional mapping and rock chip sampling have commenced across selected historical workings at Myrtleford and Beaufort, including along the Magpie-Barwidgee trend, where no modern drilling has previously been completed.
Advance Metals Limited (ASX: AVM) has moved to secure full ownership of its high-grade Myrtleford and Beaufort Gold Projects in Victoria, following strong drilling results and metallurgical testwork at the Happy Valley deposit.
The Company has amended its agreement with 1548043 B.C. Ltd, previously Serra Energy Metals Corp, to acquire the remaining 20% interest in the projects. Advance had previously agreed to acquire an 80% interest for C$3.0 million, with the amended agreement increasing total consideration for 100% ownership to C$4.0 million.
The remaining consideration will be paid in staged tranches over three years, in either AVM shares or cash at Advance’s discretion. The agreement also includes a 1% net smelter return royalty over future gold production from the projects.
The amended agreement follows a series of successful exploration programs at Myrtleford, including high-grade drilling results from Happy Valley such as 8.2 metres at 28.8g/t gold from 186 metres, including 3.4 metres at 68.2g/t gold, and 7.5 metres at 55.0g/t gold from 178.1 metres, including 1.3 metres at 305.8g/t gold.
Recent metallurgical testwork at Happy Valley has also returned gravity gold recoveries of up to 96.1%, supporting the potential for low-cost gravity processing options in the future. The first modern metallurgical testwork completed on the Happy Valley mineralisation showed total gold recoveries ranging from 91.7% to 96.1%, with concentrate grades between 1,483g/t and 2,058g/t gold.
Further drilling at Happy Valley has continued to confirm high-grade mineralisation, including 1 metre at 22.3g/t gold from 95.7 metres, including 0.2 metres at 108.5g/t gold, in hole AMD026. Deeper drilling also returned 6.6 metres at 1.8g/t gold from 496.8 metres, including 0.6 metres at 12.6g/t gold, in hole AMD023.
Adam McKinnon, Managing Director and CEO commented:
“Moving towards 100% ownership of Myrtleford and Beaufort is a logical and value accretive step for Advance following the exploration success we have delivered at Happy Valley.”
“The combination of ultra-high grade drilling results, excellent gravity gold recoveries and multiple untested historical trends gives Advance full exposure to what we believe is a compelling district scale gold opportunity in the Victorian Goldfields.”
“The amended agreement has been structured over three years and allows Advance to retain flexibility over whether payments are made in shares or cash. This provides the Company with a clear pathway to secure full ownership while preserving balance sheet flexibility.”
“With ongoing structural modelling, pending assays, regional mapping and sampling and further drill targeting underway, Myrtleford is emerging as an important growth asset within Advance’s high grade precious metals portfolio”
Advance said assay results remain pending for two further diamond holes at Happy Valley, with structural modelling underway to support future drill targeting.
The Company has also commenced regional mapping and rock chip sampling across selected historical workings at Myrtleford and Beaufort, including along the Magpie-Barwidgee trend, where no modern drilling has been completed.
About us:
About Advance Metals
Advance Metals (ASX: AVM) is a high-grade silver and gold exploration company with advanced projects in Mexico and Australia, executing a funded growth strategy to expand resources and deliver new discoveries.
In Mexico, Advance’s 100% owned Yoquivo Project hosts a maiden JORC Mineral Resource of 33Moz AgEq, comprising 8.8Mt at 120g/t AgEq, with mineralisation open along strike and at depth. The Company’s Mexico portfolio now totals 116Moz AgEq, including Yoquivo, the district-scale Guadalupe y Calvo Project, which hosts 60.6Moz AgEq, and the 100% owned Gavilanes Silver Project, which hosts a 22.4Moz AgEq Foreign Estimate. Drilling has commenced at Gavilanes, targeting extensions to the high-grade system ahead of a planned JORC Resource upgrade.
In Australia, Advance is moving to 100% ownership of the high-grade Myrtleford and Beaufort Gold Projects in Victoria. At Happy Valley, drilling has confirmed high-grade gold mineralisation extending to at least 500m below surface, with standout results including 8.2m at 28.8g/t Au, 7.5m at 55.0g/t Au and gravity gold recoveries of up to 96.1%. With structural modelling, pending assays, regional mapping and drill targeting underway, Advance is focused on rapidly growing its high-grade precious metals portfolio.
Contact details:
Jane Morgan
Investor & Media Relations Manager
Advance Metals Limited
+61 (0) 405 555 618
[email protected]