Koongie Park Gold and Base Metals Project – WA

Joint Venture with AuKing Mining Limited (25% participating interest)

 Summary

Koongie Park is situated in north-eastern Western Australia in the highly mineralised Halls Creek region. The Koongie Park project comprises 10 tenements (two mining leases and eight exploration licences) representing an area of over 500km2. In February 2021, the Company entered into an earn-in and joint venture agreement (JVA) with AuKing Mining Limited (AKN) having the opportunity to earn up to a 75% interest in the Koongie Park Joint Venture (Joint Venture) by funding exploration and project development studies (as stipulated below).

 

  • AKN may earn a further 25% interest in the Joint Venture by incurring expenditure of $1.5 million over an initial period of twenty-four (24) months, including expenditure on exploration, testwork and related analysis to establish a commercially viable processing solution for the Koongie Park oxide ores (First Earn-In Milestone).
  • At AKN’s election, AKN can earn a further 25% interest in the Joint Venture by incurring additional expenditure of $1,500,000 over a subsequent twelve (12) month period, including expenditure on exploration activities and feasibility studies with a view to establishing mining operations on the Onedin and Sandiego deposits on the Tenements (Second Earn-In Milestone).

This expenditure is in addition to the $1m already paid by AKN to the Company during the financial year to secure an initial 25% interest in the JV. The JVA commenced on 15 June 2021, following AKN paying the remaining $900,000 to AAR and AKN being re-quoted on the ASX.

The Company retains the right to explore for and develop gold and other precious metals deposits within Koongie Park project area.

Koongie Park has existing JORC 2012 resources of 6.8Mt at 1.3% Cu, 4.1% Zn, 0.3g/t Au and 26g/t Ag, as outlined in the CSA Global Independent Technical Report included in the AKN prospectus dated 9 March 2021.