13 July 2021
TECTONIC GOLD PLC
(“Tectonic Gold” or the “Company”)
Gold Mining Joint Venture To Fund Exploration
Tectonic Gold plc (TDIM: TTAU), the Intrusive Related Gold System (“IRGS”) explorer, is pleased to announce that it has entered into a joint venture agreement with a specialist alluvial mining group to initiate gold mining on the Company’s Mt Cassidy license area in Queensland.
Agreement reached with White Prospecting Pty Ltd (“White Prospecting”) to mine alluvial gold on the Company’s EPM 26247 (Mount Cassidy Project, Rosewood area).
7.5% Gross Production Royalty to TTAU to support exploration and drilling budget.
Together with Kazera partnership in diamonds and rare earths builds on the shared revenues to TTAU.
White Prospecting will assume all operational responsibility including permitting, health and safety and rehabilitation.
TTAU to focus on further developing the Specimen Hill discovery.
Mr. Brett Boynton, Managing Director – Tectonic Gold Plc
“We are very pleased to be building this new joint venture with the well credentialed team at White Prospecting. As both the diamonds and heavy mineral sands projects in South Africa accelerate and the alluvial gold joint venture with White Prospecting moves into production, Tectonic’s aim is to be fully internally funded for gold exploration activities in Australia. This deal is designed to bring funding into the company without dilution to shareholders. We will utilise this to aggressively pursue what has turned into a very large target at Specimen Hill.
A localised COVID resurgence has necessitated restrictions on cross border movement in Australia and delayed getting the team back on site, but we expect this to be a short break. We have used the time to ink this deal with White Prospecting and move other corporate initiatives along.”
Rosewood, within the Mt Cassidy license area, holds a wonderful piece of Australian history. D. W. De Havelland notes in his 1985 book, Gold and Ghosts - Vol 1, "Hungry, hard up diggers would go to work in the morning with empty pockets, and even emptier stomachs, and would return that night with perhaps 100 pounds worth of gold. There were lumps of pure gold, clean as a whistle, like so many marbles or pure potatoes and many weighed between 10 - 15 ozs. Much of this gold was exhibited in jeweller's windows in Rockhampton and also in Brisbane".
Following the discovery of gold in the creeks at Rosewood in 1867 sizeable nuggets including some over 100 ozs were recorded, bringing a gold rush to the area. The source of this alluvial gold in the creeks and rivers is from the hard rock deposits within Tectonic’s Mt Cassidy license area. It was eroded over time and carried down the streams to deposit in bends in the river. Old time prospectors following these alluvial showings upriver led to the discovery of the hard rock gold which is the target of Tectonic’s exploration today.
Despite extensive workings in the watercourse during the late 1800’s, there was very limited exploration or testing of the paleochannels. A paleochannel is the historic watercourse of a creek or river. Thousands of years erosion and geological activity has moved the original watercourse of the creeks and rivers at Rosewood, but these historic creek beds, or paleochannels, contain alluvial gold, and it is this gold that White Prospecting will be targeting. They are experts in the identification of ancient watercourses and mapping them for alluvial potential.
Mining this material is really an earthmoving exercise where the old riverbed is stripped back down to the bedrock. The gravels from the old riverbed are then processed through gravity separation to extract the gold and the gravels are then returned and vegetation is rehabilitated. It is low impact and rapid turnaround mining.
Preparation for the permitting is underway to begin on site operations as soon as possible. Once this has been finalised, Tectonic will advise on the expected scale of operations at Rosewood.
Mr Jonathan Robbeson – BSc (Hons1), MEconGeol, MMinEng, (CP Geo) is a full-time employee Signature Gold Limited and is a registered Chartered Professional (Geology) with the Australian Institute of Mining and Metallurgy (AusIMM – 304542). Mr Robbeson has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and the activity being undertaken to qualify as a Competent Person as defined in the Note for Mining Oil & Gas Companies, June 2009, of the London Stock Exchange and the 2012 Edition of the ‘Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code). Mr Robbeson consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.
The Directors of the Company accept responsibility for the contents of this announcement.
For further information, please contact:
Tectonic Gold plc
+61 2 9241 7665
Financial Adviser, Corporate Adviser and Broker
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.