Hipo Resources says it will be proceeding with a deal to gain an interest in a package of Central Queensland gold projects, including the historical Belyando and Lucky Break open-pit mines.

The company recently announced a binding heads of agreement with Zamia Metals to acquire up to 70 per cent of Zamia Resources, which holds four exploration permits over about 115 sq km in the Drummond Basin region.

It announced this week that the Board was satisfied with the outcome of its technical due diligence and intended to finalise the deal in coming weeks.

“We are extremely pleased to be proceeding with the Zamia farm-in as we commence work to unlock significant value from what we believe are vastly under-explored and under-developed assets,” Hipo executive chairman Maurice Feilich said.

“We have a busy work program to complete over the coming months and look forward to providing regular updates as exploration activity including drilling progresses.”

Shallow open-cut operations in the 1980s and early 1990s produced about 93,000oz of gold at Belyando (pictured below) and Lucky Break.

Hipo can earn a 30 per cent stake in Zamia Resources with a minimum project spend of $425,000 within the first six months.

In an announcement to the ASX this week, Hipo said work was underway on a planned drill program to test the Belyando and Lucky Break mines and likely mineralisation extensions at strike and depth.

Some other encouraging targets identified during due diligence would also be drilled, the company said.