The $1 million deal includes the takeover of Palm Springs’ current holders, Horrocks Enterprises and Kimberly Resources, from Perth-based Rimbal and Pinnacle Nominees.
The Palm Springs project is an advanced exploration play with production in the late 1990s.
Its previous owner, Precious Metals Australia produced over 50,000 ounces at two grams per tonne from the Butchers Creek open pit mine until mining was suspended due to low gold price.
The project also bore the fingerprints of Northern Star Resources, which completed drilling and a mineral resource at multiple prospects on the project.
Its best results include two metres at 174.7 grams per tonne from 12 metres, and five metres at 4.9 grams per tonne, including 0.4 metres at 47.2 grams per tonne from 126.6 metres.
Meteoric managing director Andrew Tunks said the company had been looking for an Australian gold project since early this year to complement its Brazilian assets and take advantage of historically high gold prices.
“During our due diligence process, it became obvious that the Butchers Creek area has had no modern exploration since the mine closed in 1997,” he said.
“Since that time, all the historic digital data has been lost and as such, the geological evaluation had to be carried out via ‘the old school’ method of manually working through 65 paper drill cross-sections, a slow and painstaking process of reading the section drilling data off metre by metre to compile the significant intercepts.
“As we worked through the sections in detail, it highlighted to me the incredibly significant opportunity that Palm Springs offers Meteoric.”
The team discovered a planned pit extension that was never completed, and the continuity of the grades and thick, robust nature of the mineralised zones.
Meteoric plans to target its initial drilling programs on this and other similar zones below.
Company geologists will commence data collection and engagement with local groups this week in preparation for a drill program, which could start at Butchers Creek as soon as practicable.
“The Palm Springs project is a fantastic addition to (Meteoric’s) gold portfolio … and I look forward to progressing our 2020 exploration programs concurrently at both our Australian and Brazilian assets,” Tunks concluded.