Big Expansion in Gold Assets in Western Australia
Cloudbreak expands Darlot West Gold Project acreage by five times to 60.6km2 under exclusive option.
- Darlot West acreage expansion 60.6km2
- Acreage increase factor 5x
- Additional greenstone belt strike ~7km
- Distance from Darlot Gold Mine 10km southwest
- Best surface rock chip sample grade 28.62g/t Au
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Cloudbreak Discovery Plc (LSE: CDL), a London Stock Exchange Main Market listed company, is pleased to announce the expansion of the Darlot West Gold Project ("Darlot West") by five times the initial land package, increasing Cloudbreak's exposure to a total of 60.6km2. Darlot West is located only 10km southwest of the iconic Darlot Gold Mine in Western Australia with production of 2.8 million ounces of gold produced to date.
The increased ground position includes ~7km of additional strike of greenstone belt, the host to where Cloudbreak recently discovered up to 28.62g/t Au from surface rock chip sampling.
Figure 1: Darlot West Gold Project - Expanded Tenure and Geology
Tom Evans, Cloudbreak's MD, commented; "The Darlot West Gold Project has already returned some excellent gold grades as surface with grades approaching an ounce of gold per tonne. There are also extensive historic gold mining shafts that have never been followed up exploration wise. To secure this extra acreage under an exclusive option is a very exciting transaction for the Company. We will now have exposure to a significant package of land and underpins our strategy of increasing our exposure to the highly prospective greenstone belt within 10km of Darlot Gold Mine. The greenstone units which trend extend into our additional ground package at Darlot West are the host to numerous gold deposits in the district. Through increasing our scale to five times the additional land position, and to take in a further 7km of strike we are significantly increasing our chance of discovery."
Commercial terms of the Darlot expansion transaction:
The vendors have provided an exclusive option over 90% of the additional tenement for a period of 90 days, The consideration for for this option period is GBP5,000 with a final consideration of 11,000,000 ordinary shares in the Company ("Shares") if the option is exercised. The Vendors have agreed that the Shares will only be issued when the Company has the ability to do so under applicable regulations.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.