PERTH (miningweekly.com) – Gold miner Newcrest Mining and fellow-listed Encounter Resources have extended a project generation alliance by a further 12 months.
The initial agreement, which started in July last year, generated five separate unincorporated joint ventures (JVs) between Newcrest and Encounter, covering some 4 400 km2 of the Tanami gold province and West Arunta, in Western Australia.
The current JVs are operated on a 50:50 basis, with Encounter having the right to maintain its interest by contributing its share of exploration expenditure.
Should Encounter decide not to contribute to the project spend, Newcrest can increase its interest to 80% by sole funding exploration activities and delivering a Joint Ore Reserves Committee-compliant inferred resource of more than one-million ounces of gold or gold equivalent.
“Following the decidedly productive initial period, we are delighted to continue the project generation alliance with Newcrest in the Tanami and West Arunta regions,” said Encounter MD Will Robinson.
“We hope to build on the five ventures already established which provide Encounter with significant leverage to a pipeline of projects with the potential to host major and giant gold deposits.”