Gold Joint Ventures

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Acra Project JV

ESS holds a 30% interest free-carried to a decision to mine with Novo Resources Corp (TSXV.NVO) and Sumitomo Corporation (TYO:8053) jointly holding a 70% interest with Novo managing the JV. ESS retain 100% of the rights to all minerals other than precious metals, including gold, which are the subject of this JV

The Acra Gold Project covers an area of 340 km² and is located 60 km north east of Kalgoorlie, WA. The Project has historically been explored for nickel, however Essential Metals’ exploration focus turned to gold, and was successful in identifying a 20 km long gold target zone. In October 2016, the Company entered into a Joint Venture Agreement with gold miner Northern Star Resources Limited (ASX: NST, “Northern Star”), which now holds a 75% Joint Venture interest in the Project. Essential Metals has a 25% free-carried up to DMIRS approval of a mining proposal from Northern Star.

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Kangan Gold Project JV

ESS holds a 30% interest free-carried to a decision to mine with Novo Resources Corp (TSXV.NVO) and Sumitomo Corporation (TYO:8053) jointly holding a 70% interest with Novo managing the JV. ESS retain 100% of the rights to all minerals other than precious metals, including gold, which are the subject of this JV

The Kangan Project is located in the West Pilbara W.A: Under the farmin & JV agreement with Novo Resources Corp (TSXV:NVO, “Novo Resources”) and Sumitomo Corporation, the parties will jointly fully fund gold exploration programmes until a decision to mine is made, with Pioneer retaining a 30% interest until the decision to mine.

The Kangan JV forms a part of Novo Resources’ larger Egina Gold Project.

From a gold perspective, Kangan’s prospectivity was assessed as low for ‘lode’ type quartz vein structures and low to medium for ‘conglomerates’ due to the lack of the key geological units being identified. Work by Novo Resources has demonstrated that the Kangan ground has excellent potential for gold-bearing, deflationary and/or marine lag gravels blanketing an erosional terrace covering most of the Egina area.

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Balagundi Gold Project Farmin/JV

Black Cat Syndicate Limited (ASX:BC8) is earning a 75% interest in the Project located at Bulong, near Kalgoorlie. Black Cat will then fully fund gold exploration programmes until a decision to mine is made, with ESS retaining a 25% interest

A Farm-in & Joint Venture agreement was signed with Black Cat Syndicate Limited (ASX: BC8) on 27 July 2019. Balagundi is located adjacent to Black Cat’s Bulong Gold Project. Upon Black Cat meeting the farm-in expenditure requirements, Essential Metals will retain a 25% carried-free interest up to completion of a bankable feasibility study.

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Larkinville Gold Project Farmin/JV

ESS holds a 25% interest in the gold rights and is free-carried to a decision to mine with Maximus Resources Ltd (ASX:MXR) holding a 70% interest and managing the JV. ESS retain 100% of the rights to all minerals other than precious metals, including gold, which are the subject of this JV and nickel, which are subject to the Nickel JV with Maximus Resources 

Located southwest of Kambalda and northwest of Widgiemooltha, Larkinville hosts a modest Mineral Resource (JORC 2012 ) of 19,700 t @ 3.02 g/t for 11,600oz and has great potential to co-develop for near-term small-scale production. There is further exploration potential to increase the resource base and the deposit is open to the north and at-depth.