Major Acquisition Boosts Gateway's WA Gold Portfolio
Gateway Mining (ASX: GML) has made a significant strategic move by agreeing to acquire Strickland Metals' 400,400-ounce Yandal Gold Project in Western Australia for $45 million in GML equity, substantially expanding its gold resource base and creating a multi-project gold development company.
The binding agreement will see Gateway gain control of the highly prospective eastern flank of the Yandal Greenstone Belt in WA's northeastern Yilgarn Craton, with 1,780 square kilometers of exploration ground in close proximity to Northern Star's Yandal Operations Centre.
"I have had significant involvement with the Yandal asset in recent years, and am delighted that Gateway has secured the Yandal Project and can now focus on various development options in what is a highly strategic part of the West Australian goldfields." – Peter Langworthy, Gateway Executive Chairman
Established Resource Base with Significant Growth Potential
The Yandal Project already hosts a JORC 2012 Inferred Resource of 8.17Mt @ 1.52g/t Au for 400,400 ounces, providing Gateway with an immediate substantial resource base. The acquisition includes two key gold camps:
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Horse Well Gold Camp (291,500oz): A large-scale gold system defined over 4km of strike length with excellent potential to expand under transported cover to the north
- Palomino Deposit: 2.12Mt @ 1.90g/t Au for 129,500oz
- Warmblood Deposit: 1.66Mt @ 2.37g/t Au for 126,000oz
- Filly Deposit: 0.58Mt @ 1.15g/t Au for 21,500oz
- Bronco Deposit: 0.32Mt @ 1.38g/t Au for 14,500oz
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Dusk 'til Dawn Gold Camp (108,900oz): 3.50Mt @ 1.00g/t Au for 108,900oz, including a higher-grade component of 0.99Mt @ 1.60g/t Au for 51,800oz
Near-Term Development Pathway
Gateway's initial focus will be to progress the Mining Licence application already commenced by Strickland for the Horse Well resource. Several toll treating options exist within the region, potentially offering a faster route to production.
Recent metallurgical testwork on the Palomino Deposit showed encouraging results with:
- Gravity-recoverable gold of up to 32.5%
- Total gold recoveries (gravity + cyanide leach) between 78.5% and 88.6%
Compelling Exploration Potential
A key attraction of the Yandal Project is its exploration upside. Gateway believes the eastern extent of the Yandal Greenstone belt remains significantly underexplored, with less than 6km of the total 75km belt covered by modern exploration techniques.
The company has identified two major exploration targets:
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Extensions to existing resources: Drilling will target depth extensions at Warmblood and Palomino deposits where high-grade mineralisation remains open at depth.
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Intrusion-Related Gold (IRG) potential at Dusk 'til Dawn: Compelling targets have been identified with gold-molybdenum-copper-bismuth-tellurium anomalies and propylitic alteration – typical signatures of large IRG systems.
Transaction Structure and Timeline
The acquisition terms include:
- Consideration of $45 million in GML convertible preference shares
- Strickland will distribute 80% of these shares to its shareholders (representing 63% of Gateway post-acquisition)
- Strickland will retain a 15.7% stake in Gateway
The transaction is expected to complete by the second half of August, subject to shareholder approvals from both companies.
What This Means for Gateway Investors
The acquisition transforms Gateway into a multi-asset gold development company with an expanded resource base of over 400,000 ounces. The company remains well-capitalized with approximately $13.6 million in cash and liquid assets as of March 2025.
Understanding Intrusion-Related Gold Systems (IRG)
Intrusion-related gold systems represent a distinct class of gold deposits associated with magmatic intrusions. These systems typically display specific characteristics that differentiate them from other gold deposit types.
IRG systems form when metal-rich fluids are released during the cooling of magmatic intrusions. These fluids carry gold and other metals through the surrounding rock, depositing them in response to changes in temperature, pressure, and chemical conditions.
Key characteristics of IRG systems include:
- Geochemical zonation: A core of gold-molybdenum-copper-bismuth-tellurium mineralisation that zones outward to silver-antimony-lead-zinc-arsenic.
- Distinctive alteration halos: Propylitic alteration (chlorite, epidote, carbonate) is common around these systems.
- Large-scale potential: IRG systems can host substantial gold resources, often with consistent grades across large volumes.
The identification of these characteristics at Dusk 'til Dawn makes it a particularly exciting exploration target within Gateway's expanded portfolio.
Why Gateway Is Worth Following
Gateway Mining now offers investors exposure to:
- A substantial 400,400oz gold resource base with clear pathways to resource growth
- Multiple development options including near-term mining license potential
- Compelling exploration upside across an underexplored 1,780km² land package
- A well-funded position with $13.6M in cash and liquid assets
- Proximity to existing gold processing infrastructure in a tier-one mining jurisdiction
With drilling of the intrusive-related gold targets at Dusk 'til Dawn planned for late 2025/early 2026, Gateway investors can look forward to significant news flow as the company advances both its development and exploration strategies across this newly expanded gold portfolio.
Want to Capitalise on Gateway's Expanded Gold Portfolio?
Discover the full potential of Gateway Mining's strategic acquisition of the Yandal Gold Project and explore how this transformative deal creates a compelling investment opportunity in the Western Australian goldfields. With an established 400,400-ounce resource base, near-term development pathways, and significant exploration upside across 1,780km² of prospective terrain, Gateway is positioning itself as an emerging gold developer worth watching. For comprehensive information about this exciting development and to stay updated on Gateway's progress, visit their website today.
