OVERVIEW OF JOINT VENTURE
VIC has now taken over Serena’s rights pursuant to the Farm-in and Joint Venture Agreement to earn an 80% joint venture interest in three stages by spending a total of $2,100,000 on exploration.
Stage 1 has already been completed and accordingly VIC has now acquired a 10% joint venture interest.
Stage 2 requires further expenditure of approximately $600,000 by 31 March 2022 to earn a further 40% joint venture interest and Stage 3 requires an additional $1,000,000 expenditure by 31 March 2024 to earn the remaining 30% joint venture interest.
Upon earning an 80% joint venture interest, VIC would then be required to solely fund the Coogee Gold Project up to a decision to mine, which will require the delineation of a gold resource of at least 22,000 ounces to a bankable standard.
Upon a decision to mine, Ramelius can elect to either:
- Maintain its 20% joint venture interest by contributing to joint venture expenditure.
- Dilute its joint venture interest in accordance with a standard dilution formula.
- Withdraw from the joint venture and receive a 1.5% net smelter return royalty.
- Increase its joint venture interest by purchasing 31% of VIC’s joint venture interest for the greater of:
- three times expenditure incurred by Serena/VIC up to and including the date of election;
- $25 per resource ounce; or
- $100 per reserve ounce.
In addition to the rights of Ramelius, there is also a $25,000 per annum haul road compensation payment and a royalty of $5 per ounce payable to third parties in relation to the project.
CONSIDERATION FOR THE ACQUISITION
The consideration for the acquisition was the issue of the following securities by VIC to Serena:
- 500 million fully paid ordinary shares.
- 100 million performance rights eligible for conversion to VIC shares upon the delineation of a 25,000 ounce JORC 2012 compliant inferred gold resource with a minimum cut-off grade of 1 gram per tonne within the Coogee Project area within 3 years of completion.
- 100 million performance rights eligible for conversion to VIC shares upon the delineation of a 50,000 ounce JORC 2012 compliant inferred gold resource with a minimum cut-off grade of 1 gram per tonne within the Coogee Project area within 3 years of completion.
All of the shares and performance rights have been approved by shareholders at the 14 August 2020 shareholder meeting. All the shares issued are subject to a voluntary escrow period of six months.
As the acquisition has been completed, Shaw & Partners has received 50 million fully paid ordinary shares as a facilitation fee, approved by shareholders on 14 August 2020.
An RC drilling programme of 4,000m will commence at Coogee using leading RC drilling contractor Strike Drilling.
Coogee is located approximately 55km southeast of Kalgoorlie on the north-eastern shore of Lake Lefroy and comprises four tenements (Mining Lease M26/477, Exploration Lease E26/177 and Miscellaneous Licences L26/264 and L26/265) that cover an area of approximately 17km2.
The project’s location (Figure 1) near the major mining centre of Kalgoorlie in Western Australia provides ready access to both significant exploration and mining support services and a skilled workforce.
The 4,000m RC drill program will test the down plunge extensions of a number of the high-grade gold shoots within an overall 600m strike length Coogee Pit Trend and below the previously mined Coogee Pit. A total of 30 drill holes have been planned and range in depth from 50 to 150m, with some of the deeper holes extending to a depth of 220m (Figure 2).
A Program of Work (POW) has been approved by the Department of Mines Industry Regulation and Safety (DMIRS) and Heritage surveys have been completed.
Within the Coogee Pit Trend gold mineralisation occurs in a moderately south-west dipping shear that varies between 2m and 8m in thickness. Within the shear there are a number of high-grade shoots, which plunge towards the south at shallow to moderate angles.
Gold is hosted in quartz-carbonate-pyrite veins within dacite, andesite and rhyolite lithologies with a skarn-like assemblage comprising garnet, actinolite, phlogopite, epidote and magnetite.
Historical drilling has returned high-grade gold intercepts within the 600 metre Coogee Pit Trend, as shown in Figure 3, from a number of shoots including:
- 2m @ 28.7 g/t Au from 63 metres
- 2m @ 14.9 g/t Au from 74 metres
- 5m @ 11.13 g/t Au from 82 metres
- 6m @ 16.80 g/t Au from 36 metres
- 3m @ 21.03 g/t Au from 104 metres
Coogee Past Gold Production
In September 2012, Ramelius defined a JORC (2012) Indicated and Inferred Mineral Resource Estimate1 of 224,000 tonnes at a grade of 4.1 g/t Au. Using a gold price of A$1,500 per ounce, Ramelius went on to define Ore Reserves2 at Coogee of 109,00 tonnes at a grade of 5.1 g/t for 18,000 oz Au within an optimised open pit. Mining operations at Coogee subsequently commenced in August 2013 and were completed in February 2014. A total of 147,400 tonnes were mined from the Coogee Open Pit. This was at least 30% more ore tonnes than the defined Ore Reserve for Coogee3. Processing of Coogee ore was undertaken at the Burbanks mill, south of Coolgardie, 112km from the project area (Figure 2). Ramelius reported the recovery of approximately 20,400 ounces of gold from 152,800 dry tonnes of the Coogee open pit ore treated during the campaign at an average reconciled plant head grade of 4.7 g/t Au and metallurgical recovery of 96.4%.
Mining operations by Ramelius in 2013 provide established site infrastructure including haulage and access roads as well as miscellaneous licences.
Coogee Mineral Resource
Coogee Mineral Resource4 reported to the guidelines of JORC (2012) is tabled below:
- Ramelius Resources ASX Release, 28 September 2012
- Ramelius Resource ASX Release 12 September 2013
- Ramelius Resources ASX Release 3 April 2014
- Ramelius Resources ASX Release 10 September 2019
The information in this report that relates to Exploration Results is based on information compiled by Mr Harjinder Kehal who is a Member of the AusIMM and AIG. Mr Kehal has been engaged as a Consultant by Victory Mines Limited. Mr Kehal has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results. Mr Kehal consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this ASX release that relates to Mineral Resources is based on information compiled by Rob Hutchison who is a Competent Person and Member of The Australasian Institute of Mining and Metallurgy. Rob Hutchison is a full-time employee of Ramelius Resources Limited. Rob Hutchison has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Rob Hutchison consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.