Evergreen Lithium (ASX: EG1) is strategically diversifying its portfolio with the acquisition of the Leonora Goldfields Project (LGP) in Western Australia. This move signifies a shift from its previous focus on lithium exploration at the Bynoe project in the Northern Territory, positioning Evergreen as an emerging gold producer. The LGP boasts an inferred resource of 63,000 ounces of gold and an exploration target of up to 592,000 ounces.
Chairman Simon Lill emphasized the importance of this acquisition, stating it marks a pivotal moment for Evergreen’s transformation into a significant player in the gold sector. The company’s immediate focus will be on accelerating exploration and development efforts at the LGP to facilitate production and cash flow. Evergreen is also working on converting prospecting licenses to mining leases, aiming for a total of seven out of fifteen tenements. Key prospects identified for ongoing development include Craig’s Rest, Victor Bore, and Great Northern, all of which have demonstrated historical workings and promising drilling results.
The acquisition of the Leonora Goldfields Project from U Resource involves an upfront payment of $100,000 for due diligence and the issuance of 25 million fully paid ordinary shares, valued at $1.25 million, pending shareholder approval. Evergreen’s geology team is actively building on previous groundwork at LGP, focusing on extending known mineralization and enhancing the existing mineral resource estimate, as they refine a timeline for commissioning mining operations.
