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Greenstone buys Horizon gold projects at Coolgardie for $300,000

Neil WatkinsonKalgoorlie Miner
Horizon Minerals managing director Jon Price.
Camera IconHorizon Minerals managing director Jon Price. Credit: Kelsey Reid/Kalgoorlie Miner

Greenstone Resources has snapped up the historic Phoenix gold mine and prospective Kangaroo Hill project near Coolgardie in a deal with Horizon Minerals.

The companies told the ASX on Thursday the $300,000 deal involved two mining leases and two prospecting licences, with Greenstone to pay Horizon $150,000 in cash and $150,000 in shares on completion.

Horizon managing director Jon Price said the sale of the “non-core tenements” would provide the company with both cash and upside exposure to the projects and other ventures being advanced by Greenstone.

Greenstone said the historic Phoenix underground mine 5km north of Coolgardie aligned with the company’s regional consolidation strategy to acquire underexplored brownfields assets.

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The company said Phoenix had historically been worked as an underground mine, with historic production grades of more than 50g/t of gold, and with only limited exploration below 100m.

Greenstone managing director and chief executive Chris Hansen said the company saw the potential to test for down plunge extensions of known high-grade mineralisation as well as the potential for additional north-west to south-east intersecting structures.

“With the arrival of a second multipurpose drill rig later this month which will work across the Coolgardie gold projects, we are excited to test both Phoenix and Kangaroo Hill,” he said.

The Kangaroo Hill project is next to Greenstone’s existing Burbanks Gold Project.

Greenstone also has the Phillips Find gold project north-west of Coolgardie, and the Mt Thirsty multiple-metals joint venture with Conico next to Galileo Mining’s big Callisto platinum group elements discovery near Norseman.

Mr Hansen said with the Mt Thirsty joint venture still considering options to simplify the ownership structure to support the next development phase of the project, including an initial public offer on the ASX, it was increasingly important Greenstone also remained focused on building continued value within its gold portfolio.

“Underpinning this will be the interim resource updates for Burbanks and Phillips Find which are expected in the next 2-4 weeks,” he said.

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