PERTH (miningweekly.com) – Gold miner Doray Minerals has inked a farm-in agreement with fellow-listed Rox Resources worth A$10-million over the Mt Fisher gold project, in Western Australia.

Under the terms of the agreement, Doray would spend an initial A$1-million on exploration over the first 12 months of the farm-in period and a further A$4-million over a 24-month period to earn the gold miner a 51% interest in the Mt Fisher project.

Doray would spend a further A$5-million over a further 24-month period to earn a majority stake of 75% in the project.

Rox would be free-carried until the delivery of a prefeasibility study on the Mt Fisher project, after which the company could elect to either contribute on a pro-rata basis, or dilute its shareholding. Once the company’s shareholding diluted to 5% or less, it would revert to a 1% net smelter royalty.

Doray MD Allan Kelly said on Monday that the Mt Fisher project represented an "attractive" exploration opportunity for the company, given its many similarities with the multimillion-ounce Agnew-Lawlers gold camp and its relative lack of recent systematic exploration.

“We believe, given the geology, structural setting and results achieved to date, that there is the potential for discovery of a significant gold deposit within the project area and we look forward to working with Rox to advance the project.”

A mineral resource of 758 000 t, grading 2.52 g/t gold for 61 400 oz of gold was previously estimated on the tenement. The project comprises a number of exploration tenements covering some 480 km².

Rox MD Ian Mulholland told shareholders that the company was "delighted" that Doray had chosen to partner with Rox to accelerate the search for a significant gold deposit at the Mt Fisher project.

“The joint venture vindicates our view of the prospectivity of the tenements for gold,” he said.

Doray was planning an immediate review and initial field reconnaissance of identified target areas within the project. Initial geophysical and geochemical surveys would then be carried out to determine the potential for discovery within the new target areas.