PERTH (miningweekly.com) – ASX-listed junior Eastern Goldfields has finalised an exploration farm-in joint venture (JV) agreement with fellow-listed Intermin Resources over the Menzies and Goongarrie projects, in Western Australia.
The two companies in September last year agreed to form a JV, with Eastern Goldfields committing to spend up to A$7-million to gain an interest in the two gold projects, as well as taking an interest in Intermin.
Eastern Goldfields will sole fund and manage A$5.5-million of exploration and development studies at the project areas over the next four years, to earn a 65% stake in the tenements.
Eastern Goldfields executive chairperson Michael Fotios said on Thursday that the signing of the formal agreement completed the JV formalities.
“The deal has not changed from when we announced the signing of a heads of agreement. We are now excited by proceeding to undertake an earn-in to a potential 65% interest in the JV, which may include a feasibility study into the establishment of a second mine, potentially to be located in the Mt Ida/Menzies region.”
The tenements are estimated to contain nearly 200 000 oz of gold in reported resources, and have previously produced more than 830 000 oz, primarily from underground sources.