Adelong Gold (ASX: ADG) has added a high-grade Victorian project to its portfolio of local gold assets.

The company is acquiring a 100% interest in exploration licence EL006430 via a binding purchase agreement with Currawong Resources, a wholly owned subsidiary of TSXV-listed Great Pacific Gold Corporation.

Situated within the highly prospective “Melbourne Zone” that hosts Southern Cross Gold’s (ASX: SX2) historic Sunday Creek project, the company plans to rename the new exploration licence the “Apollo” gold project.

Under-explored opportunity

Located approximately 120 kilometres north-east of Melbourne, Apollo covers approximately 102 sq km at the under-explored northern end of the Walhalla gold belt.

The licence was originally granted in May 2018 and has been extended for an additional five years, making it valid until 2028.

Managing director Ian Holland noted that, with the mineralisation at Apollo remaining open at depth and along strike, the potential for further large-scale, high-grade discoveries is high.

Strategic addition

“The acquisition of the Apollo gold project is a strategic addition to Adelong Gold’s portfolio, complementing our existing assets in Australia,” he added.

“Adelong Gold is sufficiently funded and will move rapidly to commence further exploration drilling and resource definition, targeting high-grade extensions and untested fault zones.”

Mr Holland said previous operators in the area had returned high-grade drill results highlighting the potential for bulk-tonnage gold mineralisation.

The tenement also features multiple occurrences of high-value antimony in massive stibnite and is consistent with other gold-stibnite projects in the region, most notably the nearby Costerfield mine and Sunday Creek projects.

Acquisition terms

Under the terms of the agreement, Adelong Gold will acquire full ownership of EL006430 for an initial cash payment of $350,000.

Subject to shareholder approval, the company will also issue $350,000 worth of fully paid ordinary shares, to be issued six months post-completion at a deemed price based on the five-day volume-weighted average price at the time of issue.

Apollo will sit beside the company’s flagship Adelong goldfield project in southern New South Wales, where it is focused on restarting the modern Adelong gold plant that was constructed in 2016–17, with the goal of resuming production within 12 months.