Advance makes ‘transformational’ acquisition

Advance Metals has secured the right to acquire an 80 per cent stake in the emerging Myrtleford and Beaufort gold projects, staking its claim in the Victorian goldfields.

The binding agreement with Serra Energy Metals Corp. will see Advance gain access to more than 70 past-producing underground gold mines, with the tenements hosting hundreds of mineralised workings.

Serra has identified a 13km-long trend of gold mineralisation at the Happy Valley trend within the Myrtleford project – an area which was mined during the late 1800s and 1900s but only to shallow depths.

“Many of these mines are located on mineralised structures that extend for kilometres and remain largely untested by modern exploration,” Advance said.

“Recent drilling has confirmed high-grade quartz veins extending well below the historic workings, highlighting substantial exploration potential.”

Serra has intersected the following high-grade drilling intercepts at Myrtleford:

• 5m at 160.4 grams per tonne (g/t) gold from 190m, including 0.6m at 2430g/t gold
• 9m at 66.2g/t gold from 149.8m
• 3m at 44.8g/t gold from 135.1m
• 6m at 148g/t gold from 165.2m

A 20km trend has been identified at the Beaufort project, where 1.16 million ounces of alluvial gold has been produced in the past.

Serra has invested $6 million in exploration across the Myrtleford and Beaufort gold projects, which has delineated the high-grade Happy Valley prospect as well as the Twist Creek and Magpie targets at Myrtleford.

Beaufort is located nearby one of the world’s highest-grade gold mines in Agnico Eagle’s Fosterville operation. Other producing gold mines in Victoria include the Costerfield, Ballarat and Stawell operations.

Following the transaction, which will see Advance issue shares to Serra, Advance will hold an 80 per cent stake in the Myrtleford and Beaufort projects, with Serra owning the balance.

Serra has also been granted a one per cent net smelter royalty on any gold production from Myrtleford and Beaufort.