Bubalus Resources (ASX: BUS) is preparing to fast-track drilling at its newly acquired portfolio of projects located in the heart of a Victorian area famous for its high-grade gold.

The junior miner has been granted an option to purchase a set of exploration licences covering approximately 1,000 square kilometres in close proximity to the high-grade Fosterville and Costerfield gold mines and the Sunday Creek gold-antimony project.

The licences include Crosbie – located 18km from the Fosterville gold mine and 20km from Mandalay Resources’ Costerfield gold mine – and Murrindindi, located 20km from the Sunday Creek project owned by Southern Cross Gold (ASX: SXG).

Drilling preparations

The company is already preparing to undertake a drilling program at the new Crosbie South asset to test geophysical targets supported by high-grade surface sampling results.

It also intends to carry out further surface sampling and geophysical surveys at the Crosbie North project to refine drilling target positions.

Results of these initial programs will guide further work at Crosbie.

The company has further surface sampling and geophysical surveys planned at the Murrindindi project to better define drilling targets, including tungsten and tin targets in addition to gold.

Gold-antimony potential

The licences are prospective for gold and antimony mineralisation, with high-grade rock chips collected at the Crosbie and Murrindindi licences by the seller.

Work to date has identified significant potential for gold mineralisation, supported by the geological setting, high-grade gold rock chips collected from both licences and as targets enhanced by recent geophysical surveys at Crosbie.

The portfolio also includes the Lockwood and Wilson’s Hill licences located near Bendigo and the Castleburn licence located near Bairnsdale.

While these licences are not the immediate focus of exploration, they are also believed to potentially host gold mineralisation.

Capital raising

In conjunction with the acquisition, Bubalus has successfully received firm commitments for a placement to raise $900,000.

The company’s directors have indicated their intention to participate in the placement for a total of $210,000.

The new capital will be used to fund the Victorian gold project acquisition.

In consideration for the grant of an exclusive option to acquire a 100% interest in the tenements, Bubalus is to satisfy a non-refundable exclusivity fee including $100,000 to the vendor upon execution of the agreement.

Bubalus will also issue the vendor with 2,290,000 fully paid ordinary shares at a deemed issue price of $0.11 per share.

New director

As part of the new acquisition, Bubalus has appointed Brendan Borg to the company as a non-executive director.

Mr Borg is a geologist who specialising in the battery minerals sector who has identified numerous successful projects in an investment and/or management and operational capacity.

He is currently a director of battery minerals explorer Kuniko Limited (ASX: KNI) and lithium developer Leo Lithium (ASX: LLL).

Non-executive director Scott Deakin, who helped secure the Victorian gold projects for the company, has advised the board of his resignation due to increased work commitments.