PERTH (miningweekly.com) – Gold miner Doray Minerals has entered into a memorandum of understanding (MoU) with fellow-listed Westgold Resources to assess the development of the Gnaweeda project, in Western Australia.
“The agreement will provide Doray the opportunity to investigate potentially developing and treating the Gnaweeda mineral resource through the Andy Well processing facility and Westgold’s nearby large-scale processing facilities,” said Doray MD Leigh Junk.
He told shareholders on Friday that the two companies would assess synergies with regard to the flexibility of infrastructure and the complementary capabilities between the two companies, given the close proximity of Westgold’s Central Murchison operation to Doray’s Andy Well mine.
The MoU will expire at the end of November, by which time the two companies would have completed an assessment, after which Doray would evaluate its options to maximise project value.
The Gnaweeda project hosts the Turnberry deposit, which contains a current mineral resource of 5.5-million tonnes, at 1.8 g/t gold for 322 000 oz of gold.