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A.I.S. Resources signs binding LOI to acquire advanced gold project in NSW Australia

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The project is located approximately 37 kilometers west of the town of West Wyalong and 595 kilometers north of Melbourne in the historic West Wyalong gold corridor of central New South Wales, which produced 445,700 ounces of gold between 1894 and 1921.

Additional Information:

Company: A.I.S. Resources
Website: http://www.AISresources.com
Stock Symbol: TSXV: AIS
Date Published: Jul 20, 2020
Transcript: Available

Video Transcript:

I’m Cassandra Bolinski for InvestmentPitch Media

A.I.S. Resources Limited has signed a binding letter of intent to acquire the Yalgogrin orogenic gold project in Australia.

The project is located approximately 37 kilometers west of the town of West Wyalong and 595 kilometers north of Melbourne in the historic West Wyalong gold corridor of central New South Wales, which produced 445,700 ounces of gold between 1894 and 1921.

A.I.S. will acquire two exploration licences, the EL5891 tenement, which is 280 hectares and is completely surrounded by Thomson Resources and EL6030 which is 5,600 hectares, and encompasses 2 historical gold mines.

This region has seen significant gold mining over the past 100 years and currently has three major operating gold projects:

 Cadia Newcrest located 220 kilometers northeast and producing 900,000 ounces of gold a year,
 Lake Cowal Gold Mine located 40 kilometers from the Yalgogrin project, that was purchased by Evolution for $550 million, and
 North Parkes, a copper and gold mine 168 kilometers to the northeast that has produced 1.464 million ounces of gold and 1.168 million tonnes of copper over 25 years.

The property has reported Auger results of 12.5 and 32.3 grams per tonne gold and 14 drill holes with several intercepts ranging from 1.9 to 21.5 grams per tonne gold.

The tenement offers open high-grade near surface intersections, untested historic workings with reported high-grades, and bulk tonnage lower grade potential.

Phillip Thomas, President & CEO, stated: “AIS is very pleased to have secured this opportunity to explore and develop an advanced-stage gold project in the exciting historic gold district of New South Wales, Australia. The Project is geophysics and drill- ready with 3,795 metres over 14 drill holes already completed and a substantial drill hole and magnetic survey database from other explorers from 1953 when BHP explored the area. The goal is to fast-track the Project towards resource estimation, feasibility and then mine development in the Neighbour, Last Hurrah, Walsh, Adelaide, and Holland deposits. The Adelaide mine area is not yet drilled. The Company plans IP geophysics and drilling as soon as possible with a focus on Bulk Tonnage, near surface lower grade opportunities; Down dip/plunge and along strike of Holland/Walsh’s/Last Hurrah 500 m trend, Bonanza grade narrow vein targets near Adelaide Mine and down dip/plunge of 140 meter strike workings to 55 meter depth, grades equivalent to 1 meter @24 grams per tonne gold; Bonanza grade narrow vein targets at Neighbours Farm; Down dip/plunge of 14 meters @ 2.6 grams per tonne gold (entered old stope) from 1 meter and along strike to 32.3 grams per tonne Auger result.”

The company plans to spend approximately CDN$618,000 on a program including 5,000 meters of percussion reverse circulation drilling with downhole geophysics and 240 meters of oriented diamond core holes.

The planned outcome will be a NI 43-101 Compliant gold oxide resource.

Under the terms of the LOI, A.I.S. will acquire a 60% interest at a cost of approximately $261,000 Canadian and the issuance of A.I.S. shares worth approximately $119,000 Canadian upon signing of the definitive agreement.

To acquire the remaining 40%, the company must incur exploration expenditures of approximately $713,000 Canadian in the 12 month period following the definitive agreement and issue additional A.I.S. shares worth approximately $570,000 Canadian within 18 months.

As part of LOI, the vendor, Denis Walsh, a senior consulting geologist at the Victoria Fosterville gold mine, which produced 155,000 ounces of gold in the past quarter, will be granted a 2% NSR royalty on the first 50,000 ounces of production.

The acquisition is subject to completion of the due diligence and TSX Venture Exchange approval.

The company is also involved in manganese trading from mines in Peru.

The shares are trading at $0.045.

For more information please visit the company’s website www.AISresources.com, contact Phil Thomas, President and CEO, at 747-200-9412 or by email at pThomas@AISresources.com or Martyn Element, Chairman, at mElement@AISresources.com.

I’m Cassandra Bolinski for InvestmentPitch Media