PERTH (miningweekly.com) – Juniors Stone Resources Australia and MHM Metals have agreed to jointly develop the Brightstar gold project, in Western Australia.
MHM would earn an initial 50% interest by spending A$7.5-million on development capital at the Brightstar project, with the company earning a further 30% interest by spending an additional A$10.5-million.
The Brightstar project covers some 300 km2 of tenements and includes the Alpha, Beta, Gamma, Ben Hur, King of Creation and Cork Tree Well deposits.
The project also included a 350 000 t/y gold treatment plant, which was currently under care and maintenance, along with all associated infrastructure such as power generator sets, laboratory, camp accommodation and mining equipment.
Since 2011, Stone has completed some 40 000 m of reverse circulation drilling over the main deposits of Alpha, Beta and Ben Hur, establishing a mineral resource of 13.3-million tonnes, grading 1.7 g/t gold for some 739 000 oz.
The transaction was conditional upon MHM completing due diligence and both companies obtaining any necessary shareholder and regulatory approvals.
The companies were hoping to form a joint venture by February 19.