ASX-listed miners Intrepid Mines and Ausgold on Monday announced a farm-in and joint venture (JV) agreement in terms of which Intrepid could earn up to an 80% stake in Ausgold’s Doolgunna Station project, north-east of Meekatharra, in Western Australia.
Located to the west and along trend from Sandfire Resources’ DeGrussa copper/gold operation, Doolgunna Station is prospective for volcanic-hosted massive sulphide base metals mineralisation, similar to that found at DeGrussa, as well as orogenic Plutonic-style mineralisation.
Intrepid has to spend $2.15-million over two years to earn a 70% interest. At that stage, Ausgold could elect to transfer a 70% interest and retain a 30% contributing interest in the project, or transfer an 80% interest and retain a 20% interest that is free carried until a decision to mine is made.
The agreement will provide the necessary funding for an exploration programme at Doolgunna Station, while Ausgold focuses its exploration funds on its Katanning gold project, also in Western Australia.