- Celsius Resources (CLA) has signed a heads of agreement with Syndicate Minerals to buy the Cullarin West project in NSW
- The company will acquire 100 per cent of the project for 20 million shares
- Once it has acquired Cullarin West, Celsius will resample a historical drill hole which showed elevated levels of silver and base metals
- The company will then conduct geochemical sampling over the project to define further drilling targets
- On the back of the purchase news, Celsius is down over 21 per cent on the market and shares are currently trading for 1.1 cents each
Celsius Resources (CLA) has signed a binding heads of agreement with Syndicate Minerals to buy up the Cullarin West project in NSW.
Under the all-scrip deal, Celsius will acquire 100 per cent of the project for 20 million shares.
Cullarin West is situated within the Lachlan Fold Belt region of NSW and is located along strike from Sky Metals’ (SKY) Cullarin discovery, which has returned results such as 93 metres at 4.24 grams per tonne gold.
Further, Celsius said due to widespread cover obscuring bedrock geology, only limited historical exploration has been undertaken at the project.
“With limited historical exploration and located in a highly sought-after region along strike from a noted gold discovery, Cullarin West provides an exciting opportunity for Celsius at a low-cost entry price,” Celsius Chairman and Non-Executive Director Bill Oliver commented.
“We are eager to get on the ground as soon as practical once the tenement is granted and will update investors on activities as they progress,” he said.
“In parallel, we continue to assess other opportunities to diversify Celsius’ mineral exploration portfolio and look forward to updating shareholders should these progress into transactions,” he added.
A historical diamond drill hole at Cullarin West in 1978 showed elevated levels of silver and base metals and Celsius is planning to assess this area and resample it as a high priority.
Cullarin West also hosts the historical Gooda Creek and Daltons goldfields.
Gooda Creek is a high grade, small scale gold mine that averaged 180 grams per tonne of gold before the 1900s, according to government records.
Limited drilling in 1987 returned results such as 1.95 metres at 23.1 grams per tonne of gold and one per cent copper.
Daltons hosts multiple gold occurrences that have seen small scale, high-grade production, returning results grading more than 10 grams per tonne of gold.
A drill program in 2012 returned a best result of one metre at 27.1 grams per tonne of gold from 54 metres.
On the back of today’s news, Celsius is down 21.43 per cent on the market and shares are trading for 1.1 cents each at 11:47 am AEST.