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Newcrest starts Chillagoe exploration programme

30th June 2015

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – Gold major Newcrest Mining has started exploration work at junior Mungana’s Chillagoe project, in Queensland, as part of an agreement to search for large gold/copper porphyry deposits.

Under the agreement, which was announced in May, Newcrest would spend up to A$20-million on exploration over an eight-year period.

Mungana MD Tony James explained on Tuesday that the major’s programme would proceed in parallel with Mungana’s strategy to develop its high-grade zinc and base metal assets at Chillagoe, including the King Vol deposit. “This two-pronged approach maximises our ability to unlock the value of the project,” he said.

Newcrest has to spend a minimum of A$3-million in the first 18 months of the exploration agreement.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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