Australian Mines (ASX:AUZ) has entered into a legally binding term sheet with Cabral Resources, a subsidiary of GoldMining (TSX:GOLD,NYSE:GLDG) to earn up to an 80 percent interest in the Boa Vista gold project.

As per the terms of the agreement, Australian Mines’ acquisition will follow a staged earn-in structure. This includes three payments of C$250,000 each year over three years, totaling C$750,000.

Boa Vista is located in Brazil’s Tapajós province, which is recorded to have a historical production of over 30 million ounces of gold and is recognised for high-grade, structurally focused gold systems.

“Boa Vista offers compelling near-surface mineralisation with district-scale exploration upside, supported by existing datasets and strong historic drilling results,” said Australian Mines CEO Andrew Nesbitt.

Among Boa Vista’s prospects is VG1, which holds a historic inferred resource of 8.47 million tonnes at 1.23 grams per tonne (g/t) gold for 336,000 ounces. Drill intercepts at the project were described by the company as “robust,” with 104.5 metres at 1.59 grams per tonne gold, including 23.5 metres at 4.51 g/t gold.

Boa Vista is also located 80 kilometres away from GoldMining’s São Jorge project, which has indicated resources of 0.62 million gold ounces and inferred resources of 0.13 million gold equivalent ounces.

Australian Mines said that they intend to update Boa Vista’s historical resource to JORC 2012 standards, alongside advancing metallurgical, environmental and baseline studies.

Plans for an initial 3,000 metre diamond drill program to test expansion potential and refine targets are also in place.

The company is also currently developing its flagship Sconi project in Queensland, which is expected to deliver nickel and cobalt over a 30 year mine life.

Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.