Ramelius strikes deal with Newmont in Nevada

15th September 2017 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Australian gold miner Ramelius Resources has struck a deal with US gold major Newmont Mining over its South Monitor land package, in Nevada.

Under the terms of a farm-in and joint venture (JV) agreement signed this week, Ramelius could earn an 80% interest in the South Monitor gold project by spending $8-million over an eight-year period, through a staged earn-in.

An initial $250 000 will be spent during the first year of the earn-in period, before Ramelius will be allowed to withdraw from the agreement, with Newmont retaining the right to claw back up to 70% equity in the project area.

Ramelius is planning to conduct infill drill testing around significant historical disseminated low sulphidation epithermal gold intersections at South Monitor, to confirm the mineralisation continuity and generate a Joint Ore Reserves Committee-compliant resource, as well as to test potential high-grade feeder structures below the gold intersections.

Deeper diamond drilling was also planned within the September quarter to test the predicted high-grade feeder structures.

The earn-in and JV agreement with Newmont is Ramelius’s second foray into Nevada, with the company earlier inking a similar agreement with TSX-listed Renaissance Gold over its Jupiter gold project, where Ramelius is earning a 75% interest by spending $3-million over a five-year period.