The Evolution Mining Ltd (ASX: EVN) share price has come under pressure on Thursday morning after a pullback in the gold price offset the release of a positive announcement.
At the time of writing, the gold miner's shares are down almost 4% to $4.92.
What did Evolution announce?
This morning Evolution announced the acquisition of a 100% interest in the Crush Creek project which is located 30km southeast of its Mt Carlton Operation in Queensland.
This follows its entry into an earn-in agreement with Basin Gold in September 2019. That agreement meant Evolution could earn a 70% interest in the project by funding $7 million of exploration expenditure.
With that now achieved, management has exercised its option to acquire the remaining 30% of the project from Basin Gold for a cash payment of $4.5 million.
Basin Gold will retain a 10% net profit interest on any gold production in excess of 100,000 ounces.
Why Crush Creek?
According to the release, Crush Creek hosts low sulphidation epithermal gold mineralisation which Evolution believes has significant potential to provide mine life extensions at Mt Carlton.
Evolution's Vice President Discovery and Business Development, Glen Masterman, commented: "Drilling at Crush Creek has returned promising results and reinforces our belief that mineralisation we are delineating has the potential to extend mine life at Mt Carlton."
Drilling under Evolution management of the project has focused on understanding and expanding the mineralisation at the BV7 site along with testing the Delta area for a new discovery. Management revealed that encouraging results have been received from BV7 as well as from the Delta, The Kink, and Gamma prospects.
Drilling is continuing at these prospects during the December quarter focusing on the high-grade plunge to the north of BV7. In addition, follow up drilling continues at The Kink and Gamma prospects. More drilling updates are expected be released in the coming quarters.
