PERTH (miningweekly.com) – Juniors Chalice Gold and Red Hill Iron have signed an agreement under which Chalice will explore the West Pilbara gold project, in Western Australia.
Chalice could earn a 70% interest in the project’s gold and base metals by spending A$3-million, with a minimum commitment of A$500 000 within the first 12 months.
Chalice could earn an initial 51% interest in metals by spending A$1-million within two years, at which point Red Hill could either contribute to its 49% pro rata interest, or Chalice could earn a further 19% interest by spending a further A$2-million within no set time period.
The parties said in a joint statement on Tuesday that exploration for gold and base metals had been carried out across the project at various times since the 1980s, with the most recent exploration undertaken between 2006 and 2009.
A number of targets have been identified over the project, which covers some 1 390 km2 and which comprises a package of 12 tenements. Of the prospects identified, Derek’s Bore and Urandy are the most advanced.
Chalice plans to start an immediate review of all data and to undertake a field review of the identified targets, followed by mapping and drill programmes, with the Urandy prospect prioritised for follow-up reverse circulation drilling.