E79 Gold Mines Limited (ASX: E79), an ASX-listed gold exploration company focused on discovering and developing gold resources, has announced a binding agreement to acquire Cue Metals Pty Ltd, securing rights to the Cue Gold Project in Western Australia’s Murchison Province. The Cue Gold Project, situated in the Day Dawn Goldfield, covers approximately 70 square kilometres and is considered prospective for high-grade quartz reef-hosted gold deposits. The location is immediately south of Westgold’s high-grade Great Fingall Gold Mine.
To fund the acquisition and accelerate exploration, E79 Gold has successfully secured binding commitments for a $3 million placement to sophisticated investors. The placement will involve the issue of new shares at A$0.021 per share. Funds raised will be used to complete the Cue Gold Project acquisition, scale-up gold exploration activities, and support general working capital requirements. The company plans to apply proven exploration techniques to unlock the high-grade gold potential at the Cue Gold Project, which remains largely under-explored by modern exploration techniques.
The Cue Gold Project has several priority targets, including Ada, Chloe, Riptide, Transformer and MBA23. Historical drilling at the project has returned encouraging results, including 13m @ 2.2g/t gold from 112-125m in drill-hole GCRC936 at the Ada gold prospect and 4m @ 4.4g/t gold from 36-40m in drill-hole MBA23 at the MBA23 gold prospect. In conjunction with the acquisition, resources executive Mr Matthew Bowles will join the E79 Gold Board as a Non-Executive Director, and geologist Mr Glenn Martin will be appointed as a Technical Consultant.
E79 Gold CEO Ned Summerhayes commented on the strategic significance of the acquisition, highlighting the project’s location in a discovery-rich area. The company remains committed to pursuing discovery opportunities at its existing Mountain Home copper-gold-bismuth and Laverton South gold projects, respectively in the NT and WA. The acquisition is subject to customary conditions precedent, with E79 Gold actively working towards completion to commence an aggressive exploration program.
