Stellar Resources - Gold Mines of Wales granted exploration option
RNS Number : 1852W
Stellar Resources PLC
17 August 2015
 

17 August 2015

 

Stellar Resources PLC

("Stellar resources" or "the Company")

Gold Mines of Wales - Update

 

Gold Mines of Wales granted 6 year Exploration Option

 

Stellar Resources PLC (AIM:STG) is pleased to announce the renewal of the Crown Estate ("Crown") Mines Royal Exploration Option ("Option") over the Dolgellau Gold-Belt for a period of six years to Gold Mines of Wales (Operations) Limited ("GMOW"). Previous extensions of the Option have only been granted for a period of one year, and the Option will be subject to review by the Crown of GMOW's progress and activities every two years. 

 

The previously granted Option of one year covered an area of 124 km2 of the gold-belt. In the renewal dated 14 August 2015 (but commencing 10 February 2015), the Crown has opted to exclude an area of approximately 17 km2 incorporating the former Gwynfynydd mine. Whilst potentially prospective for gold exploration, this area is difficult to explore due to dense forestation.

 

Under its renewed Option, GMOW retains 107 km2 of exploration area. This most importantly includes the Clogau St Davids mine, the most significant historical producer within the area covered by the Option, as well as the prospective southern area of the gold-belt (62 km2). The granted Option also covers 45 km2 of the gold-belt northern area, which is geologically prospective but vastly unexplored.

 

The six year Option period now provides GMOW with a firm base on which to drive both regional and near mine (Clogau) exploration. A consultation process has already commenced with a number of exploration service providers who may be contracted to assist. GMOW is now assessing operational and technical options to advance the project as soon as possible. Dr Simon Dominy, Director of Operations for GMOW and Dr Ian Platten, Consulting Geologist will be on site over the next few weeks to commence progression of the project.

 

Don Strang, Chairman of the Company, commented:

 

"On behalf of Stellar, I would personally like to thank GMOW and their staff for all their hard work in securing this extension. This is a tremendous result after a frustrating period of time. The granting of an exclusive six year Option now provides the necessary time frame to properly develop and implement the required exploration programmes in order to adequately assess the economic potential of this famous gold mining district."

 

Ownership:

 

Stellar Resources owns 49% of Gold Mines of Wales Limited, which in turn owns 100% of GMOW, the UK entity that holds the exclusive Option from the Crown Estate over 107 km2 of exploration area.  The Option granted to GMOW is akin to what is known as an exploration licence in other jurisdictions, in that it gives GMOW the exclusive right to explore for gold and other minerals within the licence area for the specific period.

 

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Enquiries:

Stellar Resources PLC

Donald Strang, Chairman

 +44 (0) 20 7440 0640

 

Cairn Financial Advisers LLP

James Caithie / Sandy Jamieson / Carolyn Sansom

 

Public Relations:

Square 1 Consulting Ltd

David Bick/Mark Longson

 

+44 (0) 20 7148 7900

 

 

 

+44 (0) 20 7929 5599

 

 


This information is provided by RNS
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