Straits Gold Pty Ltd (a wholly-owned subsidiary of Aeris Resources Limited) is the 100 per cent holder of the tenements comprising the Yandan Project (“Yandan”). Yandan is located approximately 40 kilometres to the west of Mount Coolon and 155 kilometres south east of Charters Towers in North Queensland. Yandan is located on the eastern margin of the Drummond Basin, proximal to the contact of the Drummond Basin within the Anakie Inlier. The Drummond Basin is highly prospective for epithermal gold-rich mineral systems, most notable for the Pajingo (~5Moz), Ravenswood (~4Moz) and Mt Leyshon (~3.5Moz) mines.
The Yandan gold mine was operated by Ross Mining between 1985 and 1990 and produced more than 350,000 ounces of gold by heap leach and from a CIL (carbon-in-leach) plant. An initial Mineral Resource Estimate (JORC 2004 compliant) has been determined for the East Hill mineralised system:
- 4Mt at 2.4g/t for 308,000 ounces of gold Inferred Resource with no lower cut-off.1
Regional studies have defined other mineralised centres with significant potential to delineate economic gold systems, including the Illamahta prospect which represents a shallow low-grade mineralised system approximately 14 kilometres south-west of the Yandan deposit.
During the year an RC drill program was completed at the Illamahta prospect – a shallow oxide gold mineralised system first discovered by Western Mining Company (WMC) in the early 1990’s. Samples collected from the program will be used for metallurgical test work evaluating the leachability of gold from the host rock.
The mining lease has significant water dams and rights to harvest water from the adjacent Sutor River.
Aeris announced the Sale of Yandan Gold Exploration Project on 20th October 2020 to GBM Resources Limited. Aeris will receive $3 million of GBM shares and a 1.5% Net Smelter Royalty on the first 300,000 ounces of gold equivalent mined from the Yandan tenements. Concurrently Aeris will subscribe for $1 million in GBM shares through a separate placement.
Completion of the transaction is subject to various conditions including GBM shareholder approval and entry into definitive sale documentation amongst others. The transaction is anticipated to be completed in December 2020.
(1) Mineral Resource figures reported from three domains which represent high grade epithermal vein systems. All block estimates within each domain have been reported (0 g/t Au cut-off).