Terrain Minerals (ASX:TMX) has moved to capitalise on the recent...

Terrain Minerals (ASX:TMX) has moved to capitalise on the recent strength of the Western Australian gold sector with a proposed project acquisition and renewed efforts at developing an old asset.

This month, Terrain has signed an option agreement to acquire the Rembrandt gold project and engaged a mining consultant to firm up the economics of its Great Western gold project before proceeding with commercial development plans.

Rembrandt has produced drilling results including 2 metres at 22.8 grams per tonne gold from 33 metres and 2 metres at 21.1 grams per tonne gold from 34 metres.

It is planned to be acquired via the purchase of unlisted developer Rembrandt Mining Pty Ltd, with Terrain agreeing to fund a $25,000 exploration program prior to electing to proceed with the transaction. 

Meanwhile, Entech Pty Ltd will complete scoping work across Great Western with a view to assessing likely project development pathways and informing the best strategy to maximise the value of the Goldfields region project.

Resources at Great Western stand at 669,000 tonnes grading 2.9 grams per tonne of gold. 

Terrain considers the project as an advanced and ready-to-mine opportunity which is possibly still open down plunge and along strike. Further exploration has the potential to expand the mine life beyond a previously defined plan of producing 322,500 tonnes at 5.1 grams per tonne.

Alongside prefeasibility work on the project, Terrain intends to set up a data room to manage the unsolicited approaches from individuals, private mining contractors and listed gold companies showing interest in the property.

The company has not ruled out the option of mining Great Western itself, and intends to use upcoming study results to inform its course of action.