17th Aug 2015 07:24
LONDON (Alliance News) - Stellar Resources PLC on Monday said Gold Mines of Wales Ltd, a company in which it holds a 49% stake, has been granted an extension under its exclusive option agreement concerning an exploration license in its name-sake country.
Stellar shares were up 3.2% at 0.36104 pence per share on Monday morning.
The six-year extension over the Dolgellau Gold-Belt covers an area of 124 kilometres squared. although an area of around 17 kilometres squared has been excluded from the extension. Stellar said the excluded area contains the Gwynfynydd mine, and while potentially gold harbouring, it believes it would be too difficult to explore anyway because of the dense surrounding forest.
Stellar said the six-year extension is significant as previous extensions have only been awarded on a one-year basis. However, the operations will be reviewed by authorities every two years.
The extension was granted by Crown Estates, a statutory corporation run on commercial lines by the Crown Estate commissioners under the provisions of the Crown Estate Act 1961, which is tied in to the HM Treasury and was created by an Act of Parliament.
The most important aspect of the project is the Clogau St Davids mine, which is the "most significant historical producer within the area" covered by the extension.
"The six year option period now provides Gold Mines of Wales 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," it said.
By Joshua Warner; [email protected]; @JoshAlliance
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