Cosmo Metals acquires Kanowna Gold Project to enhance gold prospecting capabilities

In a significant development within the mining sector, Cosmo Metals Ltd (ASX: CMO) announced its strategic move to acquire 100% of the shares in La Zarza Minerals Pty Ltd, the holder of the promising Kanowna Gold Project (KGP). This acquisition, valued at a total consideration of A$800,000, marks a pivotal step for Cosmo in bolstering its position in the gold exploration domain, particularly in the Eastern Goldfields of Western Australia, a region renowned for its rich gold deposits.

The deal encompasses an initial cash consideration of $100,000, with an additional $100,000 due upon completion. The agreement also includes scrip consideration of $400,000 in Cosmo shares, alongside a deferred cash consideration of $200,000. This strategic acquisition not only extends Cosmo’s exploration footprint but also leverages the proximity to Northern Star Resources’ Kanowna Belle gold operations, which has yielded over 5.4Moz of gold since 1993.

The Kanowna Gold Project, located merely 1km west of Northern Star Resources’ operations and 13km by sealed road east of Kalgoorlie, covers an area of 20km² with 12 Prospecting Licenses. This area is adjacent to the Kanowna Belle Mine, further enhancing the project’s potential for significant gold discoveries.

Cosmo Metals Ltd has outlined a comprehensive exploration plan following the acquisition, with immediate commencement of on-ground exploration activities. The exploration strategy includes up to 2,000m of RC drilling to test high-priority targets and shallow auger drilling across the project area. Historical drilling at KGP has already indicated significant near-surface gold intercepts, promising for the project’s gold prospecting potential.

The acquisition and subsequent exploration efforts are part of Cosmo’s broader strategy to capitalize on the Eastern Goldfields’ gold potential. This region is globally recognized for its gold production capabilities, making it a strategic location for mining operations.

This acquisition by Cosmo Metals Ltd is seen as a strategic move to consolidate its position in the gold exploration sector.

The Eastern Goldfields region, known for its rich gold deposits and mining infrastructure, offers a conducive environment for gold exploration and production. Cosmo’s acquisition of La Zarza Minerals Pty Ltd and the subsequent exploration of the Kanowna Gold Project could significantly enhance the company’s gold production capacity and shareholder value.

The strategic acquisition of La Zarza Minerals Pty Ltd by Cosmo Metals Ltd underscores the latter’s commitment to expanding its gold exploration portfolio and leveraging the potential of the Eastern Goldfields. With significant gold prospects and a comprehensive exploration plan in place, Cosmo is well-positioned to enhance its gold production capabilities and contribute to the growth of the mining sector in Western Australia.