Simon Lill may no longer have a role at gold developer De Grey Mining to keep him busy, but small explorer Evergreen Lithium is using his experience to get into the yellow metal hunt by buying a small tenement package in Western Australia that has been sitting within Infinity Mining since 2021.
With no end in sight to the lithium glut, Evergreen looked about for other assets and has struck a deal to buy Infinity’s 22sq.km holding of tenements and applications that surround Leonora to a privately-run company called U Resource, which will then transfer the assets to Evergreen.
Evergreen will spend A$100,000 cash and issue $1.25 million worth of shares to settle the transaction, funded from its $2.8 million cash position.
Evergreen has the right credentials to get into gold. In addition to Lill, fresh off the De Grey board after its $5 billion takeover by Northern Star Resources, the company also has ex-De Grey director and chair at small-scale gold miner Auric Mining, Steven Morris, on its team.
The Leonora package sits close to multi-million ounce deposits such as Vault Minerals’ King of the Hills, Northern Star’s Thunderbox, and Genesis Minerals’ Gwalia operations. It comes with an inferred resource of 63,000 ounces and an exploration target of 592,000oz grading 3.6 grams per tonne.
Evergreen believes with just a little drilling in the near term, it can deliver a mineable resource suitable for tolling in one of the four processing plants located within 80km.
Article thanks to Haydn Black at MiningNews.net
