PERTH (miningweekly.com) – North American gold major Newmont’s exploration arm has inked a A$15-million farm-in and joint venture (JV) agreement with ASX-listed Legacy Minerals over the Bauloora project, in New South Wales.

Under the terms of the agreement, Newmont could earn a 51% interest in the project by spending A$5-million on exploration within 48 months, with a minimum $2-million spent expected within 24 months.

Newmont is expected to undertake 4 000 m of drilling at the project within 48 months, with Legacy Minerals to act as operator during the initial earn-in.

During the second phase of the earn-in, Newmont could earn a further 24% interest in the project by spending an additional A$10-million, undertaking a further 8 000 m of drilling over an additional 48 months.

Following the Phase 2 earn-in, a JV will be formed upon a decision to mine, with Legacy given the option to enter an agreement to be loan carried through to production, allowing Newmont to earn an 80% interest in Bauloora. The loan will be repaid from Legacy’s share of any future mining proceeds.

“This partnership with Newmont is an exciting development for both Legacy Minerals and the Bauloora project. It confirms our belief, through the systematic work completed by our exploration team to date, that this system has the potential to host a world-class epithermal system,” said Legacy MD and CEO Christopher Byrne.

“As these types of system require systematic work and significant drilling, securing the world’s largest gold mining company as a long-term partner on the project is of huge significance. The partnership allows us to leverage Newmont’s global epithermal expertise and sustain the funding for drilling that Bauloora will require.

“The JV will deliver significant value for our shareholders and, in the near term, this funding will accelerate the pace of discovery at the project. In the longer term this partnership between Legacy and Newmont will help sustain exploration momentum across Bauloora. Importantly, the JV also provides a clear pathway to development, with the loan financing option meaning that shareholders of Legacy Minerals would be carried through to commercial production,” said Byrne.