Blaze International (ASX:BLZ) to snatch up Mt Magnet project from private explorer

• Junior explorer Blaze International (BLZ) is buying up the Western Australian Mt Magnet Gold Project from private explorer Eastern Goldfields Exploration
• The project is made up of three exploration licences just south of the Mt Magnet mining provence in Meekatharra
• As part of today’s deal, Blaze will pay $20,000 upfront and from there will have nine months to spend another $100,000 on exploration in the project area
• After that, Blaze has the right to buy a full interest in the project for $1 million and 750,000 shares
• Along with the cash and scrip payment, Blaze will also give Eastern Goldfields a two per cent net smelter royalty on any metals produced from Mt Magnet
• Shares in Blaze are trading 20 per cent higher this afternoon, currently worth 2.4 cents each

Junior explorer Blaze International (BLZ) is buying up the Western Australian Mt Magnet Gold Project, comprised of three exploration licences.

The project is currently owned by private explorer Eastern Goldfields Exploration (EGE). According to Blaze, EGE has completed systematic exploration work in the project area over several years and highlighted a number of drill-ready targets prospective for gold mineralisation.

The project lies just south of the Mt Magnet mining province near Meekatharra in WA. As part of today’s option deal with EGE, Blaze has nine months to explore licences before it can buy a full interest in them.

Under the agreement, Blaze will pay $20,000 upfront for the project, and from there will need to spend at least $100,000 in exploration over nine months. After this, Blaze has the right to buy its full interest in the project for $1 million and 750,000 shares. Along with the cash and scrip payment, Blaze will also give EGE a two per cent net smelter royalty on any metals produced from Mt Magnet.

Blaze Technical Director Simon Coxhell said today’s prospective deal is exciting for the company.

“This exciting opportunity provides Blaze with a number of excellent, high quality, drill-ready targets and the ability to gain a substantial footprint in this highly prospective, underexplored area located on the Meekatharra-Wydgee greenstone belt south of the renowned gold province of Mt Magnet,” Simon said.

According to Blaze, over 2000 soil samples have been collected over the Mt Magnet project area, identifying several gold-in-soil anomalies. Blaze plans to drill these anomalies as soon as all necessary regulatory approvals are gained, which is expected to happen over the next month.

The company is already planning to drill 50 aircore holes for roughly 3000 metres as soon as it is able.

Shares in Blaze are trading 20 per cent higher in early afternoon trade, currently worth 2.4 cents each in a $5.04 million market cap.