PERTH (miningweekly.com) – Gold miner Evolution Mining will invest a further A$4-million at the Drummond gold project, in Queensland, after taking the decision to commit to the second stage of funding at a joint venture (JV) with ASX-listed Andromeda Metals.
Evolution last year struck an earn-in and JV agreement to earn an initial 51% interest in the project by making a cash payment of A$300 000 to Andromeda and spending A$2-million on exploration over a two-year period.
The Stage 2 earn-in, which has now been approved, would see Evolution earn a further 29% interest in the project by spending a further A$4-million over a two-year period.
Andromeda will also receive a A$200 000 cash payment from Evolution as part of the Stage 2 earn-in.
The Drummond project covers some 520 km2 and is 50 km south-west of Evolution’s Mt Carlton operation.