PERTH (miningweekly.com) – The share price of junior De Grey Mining has jumped by nearly 6% after the company inked a 12-month option over the Indee gold project, in Western Australia.
A heads of agreement inked with Northwest Nonferrous Australia Mining (NNAM) gives De Grey the right to evaluate the property and to acquire Indee Gold for A$15-million by July 2018.
The evaluation will include an initial scoping study to determine the potential scale of operation and the project is expected to promptly move into detailed feasibility studies.
The Indee gold project covers some 414 km2 of contiguous landholding adjacent to De Grey’s own Turner River project, with the project comprising granted mining and exploration licences with an existing shallow gold resource of some 6.6-million tonnes, grading 1.6 g/t gold for 345 000 oz.
“This acquisition not only consolidates ownership of the regionally significant and highly prospective Mallina shear zone, but dovetails very well with our own Turner River project and fast-tracks De Grey into development studies,” said executive chairperson Simon Lil on Thursday.
“The potential scale of operation will place us within reach of a small and select group of ASX-listed gold developers. We have an exciting year ahead of us.”
De Grey will now focus on upgrading the Indee gold resource to Joint Ore Reserves Committee compliance, and will launch a scoping study into an openpit mining operation targeting the oxide gold resource.
Subject to the outcome of the scoping study, a feasibility study will be started in the second quarter of 2017 with the aim of completion prior to acquiring the project.