ASX-listed Corazon Mining has entered into a binding heads of agreement with RBH Mining to secure an exclusive 12-month option to acquire an 80% interest in the Feather Cap gold project in Western Australia’s Gascoyne region.

The 154 km² project comprises four exploration licences and one mining lease located less than 50 km from Westgold Resources’ Fortnum mill and contiguous with its Durack deposit (2.9-million tonnes at 1.2 g/t gold). The project lies within the same region as Corazon’s recently acquired Two Pools project, expanding the company’s footprint in what MD Simon Coyle describes as “a highly prospective, proven mineral province”.

“The grant of the Feather Cap option is a key component of our strategy to build a significant presence in the Gascoyne region,” said Coyle. “With the Feather Cap project located less than 100 km from our Two Pools gold project, we will, subject to exercise of the option, consolidate a significant, highly prospective land package in a proven mineral province.”

Historical drilling at Feather Cap has returned several high-grade intercepts, including 20 m at 3.01 g/t gold from 40 m (including 4 m at 10.7 g/t) and 35 m at 1.47 g/t from 32 m (including 5 m at 5.13 g/t) at the Durack East prospect. At the Wembley area, shallow drilling returned 7 m at 6.21 g/t gold from 6 m, including 2 m at 18.33 g/t.

Corazon plans to undertake a detailed review of historical exploration data to refine drill targets, with Durack East and Wembley identified as immediate priorities. Coyle noted that Wembley’s near-surface mineralisation and weathered zones could present an “early-stage development opportunity”.

Under the terms of the option, Corazon will pay A$50 000 in cash and A$50 000 in shares to RBH and must spend at least A$250 000 in exploration during the 12-month option period. Should it exercise the option, Corazon will pay A$600 000 on completion and a further A$1-million within four years.

RBH will retain rights to iron-ore and manganese and will be free-carried through to a final investment decision, at which point its 20% interest will convert to a 3.5% net smelter return royalty.

Coyle said the transaction was “highly capital-efficient”, allowing Corazon to fast-track exploration while preserving its balance sheet.