Newcrest looks at properties to grow Telfer
PERTH (miningweekly.com) – Gold major Newcrest Mining has acquired options over two tenements held by ASX-listed Ram Resources near its Telfer gold project, in Western Australia.
Ram said Newcrest would pay A$30 000 a year for a period of three years, for both options, and would meet a minimum expenditure requirement on the tenements.
The gold miner would pay A$500 000 on election to exercise the first option, along with a net smelter royalty of 1.5%, and a $250 000 fee on the section option, along with a 1.5% net smelter royalty.
Newcrest recently announced a 27% quarter-on-quarter increase in production at its Telfer operation, with the project delivering 156 789 oz of gold and 7 352 t of copper during the three months to December.
Ram MD Bill Guy said on Monday that the agreements allowed the junior to benefit from any exploration success by Newcrest, while allowing the company to focus its resources on its own exploration programmes in the Fraser Range belt, in Western Australia.
Ram holds an 80% interest in the Fraser Range project, as well as a 51% interest in the Motzfeldt rare earths projects, in Greenland.
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