Shares in Goldsearch (GSE) rose today after the company announced that it had acquired a new tenement in a highly prospective minerals region in Victoria.
The tenement covers a total area of 224 square kilometres and is located south of Goldsearch's existing Mount Wellington Gold Project, therefore expanding the company's tenement holdings to 396 square kilometres in the area.
The newly acquired tenement covers the Mikes Bluff prospect, where historical drilling intercepted elevated gold and base metals over 1m sample intervals.
Under the terms of the agreement, the Gold explorer will pay $35,000 in cash to aquire the tenement, and then issue 500,000 Goldsearch shares and 400,000 exercisable options to the seller.
At Mount Wellington, Goldsearch is exploring for gold and base metals in a belt of Cambrian greenstone volcanic rocks.
The company said that exploration at Mt Wellington between 1980 and 1995 had identified a number of areas of gold and base metal mineralisation and extensive hydrothermal alteration (a change in rock mineralogy due to interaction with hot water fluids containing metals).
Goldsearch maintains that historical gold production from this region totals in excess of 5 million ounces of gold.
The company plans to begin exploration of geophysical targets at Mount Wellington in the next quarter.
More than 5 million Goldsearch shares changed hands today. The company's average daily volume is 1.5 million.
Goldsearch rose by 13.6% to close at 12.5 cents.
