JOHANNESBURG (miningweekly.com) – Gold major Newcrest Mining has started exploration work at junior Mungana’s Chillagoe project, in Queensland, as part of an agreement to search for large gold/copper porphyry deposits.
Under the agreement, which was announced in May, Newcrest would spend up to A$20-million on exploration over an eight-year period.
Mungana MD Tony James explained on Tuesday that the major’s programme would proceed in parallel with Mungana’s strategy to develop its high-grade zinc and base metal assets at Chillagoe, including the King Vol deposit. “This two-pronged approach maximises our ability to unlock the value of the project,” he said.
Newcrest has to spend a minimum of A$3-million in the first 18 months of the exploration agreement.