Evergreen (ASX:EG1) has strengthened its Leonora footprint after entering a binding Heads of Agreement to acquire five new tenements directly along strike from its Queens North ground.
The acquisition expands the Company’s control over the highly prospective Craig’s Fault corridor and provides immediate access for exploration.
Strategic expansion
The new tenure includes two granted Prospecting Licences and three tenement applications situated immediately north of Evergreen’s existing Queens North package.
This ground captures the interpreted southern extension of Craig’s Fault, the same structural trend that hosts the 48,600-ounce Craig’s Rest resource and the historically mined Wilson’s Patch area. With this transaction, Evergreen now holds ~25km of continuous strike along one of the district’s most prospective gold-bearing faults.
Evergreen can begin exploration activities immediately, with no delays linked to permitting or access constraints.
The acquisition is structured to be capital-efficient, requiring only a modest upfront cash payment of $50,000, supported by a largely scrip-based consideration issued under the Company’s existing placement capacity.
Management comments
Evergreen Chairman Simon Lill noted that the acquisition highlights Evergreen’s strategy of expanding its Leonora portfolio through smart, fast and capital-efficient consolidation.
“This is a classic high-value, low-cost consolidation play. These tenements sit right on the northern extension of the same structure that hosts Craig’s Rest and the old Wilson’s Patch mines. Adding this ground at negligible upfront cash cost while retaining immediate access is exactly how we intend to keep growing our Leonora gold portfolio.”
Next steps
The combination of immediate access, structural continuity and low entry cost provides plenty of added value to EG1’s gold portfolio.
Evergreen is expected to commence reconnaissance and target generation across the newly acquired ground, integrating structural and geological data into its ongoing work at Queens North.
The enlarged project area provides scope to define new drill targets and accelerate exploration momentum across the Craig’s Fault corridor.
