PERTH (miningweekly.com) – Philippines-focused gold miner Medusa Mining has inked an earn-in agreement over two exploration projects in Queensland.
Medusa could earn a 90% interest in either or both projects from owner Ellenkay Gold by managing and funding work programmes through to the completion of a prefeasibility study (PFS).
The ASX-listed Medusa must spend a combined minimum of A$1-million on exploration activities across both projects in the first year, before it is able to withdraw from the earn-in.
Following the completion of a PFS, Medusa can elect to sole fund a feasibility study on either or both projects. The miner will also manage the exploration programme during the earn-in period, and first drilling is expected to take place before the end of the current quarter.
Medusa chairperson Andrew Teo said that the earn-in gave Medusa greater balance in its project portfolio.
“While early stage, these new projects are located in the right geological setting and in a very supportive resource development jurisdiction. Ellenkay management have done an excellent job in securing these tenements and advancing them to their current drill ready status.”
The Hill 212 exploration project is an epithermal gold/silver project, where historical exploration work has identified gold mineralisation and classic epithermal textures. Medusa will be testing for potential grade improvement at depth below the base of oxidation.
The Mt Clark West project is a porphyry copper/gold opportunity where historical work has highlighted a number of coincident geophysical and geochemical anomalies and delineated drill ready targets.