Pacton Gold to Acquire Bellary Dome Project, Australia
Junior explorer Pacton Gold Inc is poised to acquire the Bellary Dome project in the famous Pilbara mining region of Australia, sending shares higher.
It has struck a binding letter of intent (LOI) to acquire the project from Marindi Metals Inc, the group revealed on Wednesday.
A regional gold play?
Marindi’s initial work at the property has only just begun to highlight the potential for this to be just one part of a much larger regional gold play across the Pilbara region of Western Australia.
The project has a number of attractive features, including that it lies on the southern margin of the Hamersley Basin and is surrounded by Novo Resources Ltd — a big player in Pilbara.
Over six ounces of coarse gold nuggets have previously been recovered from one alluvial “trap site”, directly downslope from mapped Bellary Formation conglomerate.
The nature of the nuggets recovered is very similar to those recovered by Novo around 250 km to the north, Pacton highlighted.
The Bellary Dome occurs on the southern edge of the Hamersley basin.
Tenements neighboring the license are held by companies also conducting exploration for gold-in-conglomerate, including Novo Resources, Southern Hemisphere Resources and Hardey.
Significant strike length..
“The acquisition of Bellary Dome provides access to a significant strike length of highly prospective Hardy Formation and Mount Roe Basalts, where multiple flattened nuggets have been recovered proximal to the Bellary Formation conglomerate,” said Alec Pismiris, the interim president and chief executive at Pacton.
“The property is surrounded by Novo Resources and with over six ounces of gold nuggets recovered from one alluvial trap site, that were pitted, flattened, and in the elongated “watermelon seed” shape, provides additional key priority exploration targets for Pacton.”
The mining group also noted that the prospectivity of the license was further highlighted by the presence of numerous alluvial gold workings, prospecting pits with gold values ranging from anomalous to 38.2 g/t (grams per ton) gold, and recent modern gold prospecting activity.
Under the terms of the LOI, which is yet to be formalized, the firm must pay C$2mln and issue around 10mln shares on closing.
It must also pay C$1mln or issue shares equal to that amount both on 12 months and 18 months after the deal is completed.
Source: Proactive Investors
About Pacton Gold
Pacton Gold Inc. is a Canadian junior exploration company focused on acquiring, exploring and advancing mineral assets in key mining friendly locations globally.
To stop by Pacton’s website, CLICK HERE
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