Alice Queen executes earn-in and joint venture agreement with St Barbara

Alice Queen executes earn-in and joint venture agreement with St Barbara

Advanced gold explorer Alice Queen (ASX: AQX) has announced its 84.5%-owned subsidiary, Kauraru Gold Pty Ltd, has entered into an earn-in and joint venture agreement with St Barbara Limited (ASX: SBM) for its Horn Island Gold Project, located in the Torres Strait in far-north Queensland. Under the terms of the deal, St Barbara has the right to earn a 70% interest in the Horn Island Project (other than identified Excluded Zones) by sole funding expenditure of $4 million within 3 years. Alice Queen will retain the right to continue pursuing exploration activities on Horn Island through to BFS in the Excluded Zones.


Advanced gold explorer Alice Queen (ASX: AQX) has announced its 84.5%-owned subsidiary, Kauraru Gold Pty Ltd, has entered into an earn-in and joint venture agreement with St Barbara Limited (ASX: SBM) for its Horn Island Gold Project, located in the Torres Strait in far-north Queensland.

HIGHLIGHTS

·       St Barbara has the right to earn a 70% interest in the Horn Island Project (other than identified Excluded Zones) by sole funding expenditure of $4 million within 3 years;

·       Alice Queen retains the right to continue pursuing exploration activities on Horn Island through to BFS in the Excluded Zones;

·       The area subject of the earn-in rights does not include the historic Horn Island Pit area, nor the area which is the subject of the Company’s existing Inferred Mineral Resource (Excluded Zones);

·       The agreement aligns Alice Queen with a well-established gold miner that has experience in developing a gold project on an island that bears geographical synergies to Horn Island; and

·       Alice Queen to assist (where requested by St Barbara) in respect of all St Barbara exploration activities, given its strong relationships and experience on the ground at Horn Island.

Alice Queen Managing Director Andrew Buxton said the EIJVA was the culmination of a detailed search for the right joint venture partner at Horn Island.

“The agreement with St Barbara was formed on the back of extensive talks with a number of interested parties, but ultimately the Company was of the view that St Barbara was the perfect fit for both Alice Queen and Horn Island.

"We are pleased to have secured St Barbara as our partner for Horn Island and we look forward to working closely together with a mutual view of exploring and developing this asset into a profitable gold mine."

St Barbara is one of Australia’s mid-tier gold producers with extensive experience in operating in a tropical region like Horn Island. It owns and operates the Gwalia mine in the gold-rich province of Leonora in Western Australia and the Simberi mine on Simberi Island in Papua New Guinea’s New Ireland Province, which together delivered over 400,000 ounces of gold for the miner in the 2018 financial year.

St Barbara’s gold Mineral Resources, Ore Reserves and mining operations are spread across the eastern half of Simberi Island, which bears geographical similarities to that of Horn Island. This was a key synergistic factor in Alice Queen choosing St Barbara as its joint venture partner for Horn Island.

It is also worth noting that St Barbara has established key traditional owner relationships on Simberi Island; a factor in which Alice Queen takes considerable pride at its Horn Island project.

Alice Queen believes St Barbara has the technical capability, financial security and operational flexibility to work with the Company to realise and fully maximise the potential that Horn Island hosts.

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