PERTH (miningweekly.com) – Gold miner St Barbara has earned a 70% interest in fellow-listed Australian Potash’s Lake Wells gold project, in Western Australia, by meeting its expenditure commitments.
The two companies in 2018 struck an earn-in and joint venture (JV) agreement over the Lake Wells project, under which St Barbara paid an initial A$1.25-million in cash and spent A$1.75-million on exploration over an initial 12-month period.
The gold miner earned its 70% stake by spending a further A$3.5-million on exploration and reimbursing Australian Potash up to A$500 000 in costs previously incurred on exploration at the project area.
Australian Potash on Thursday said that the two companies have now formed an unincorporated JV to continue the exploration, development and mining of the mineral resources at the project.
Australian Potash would not be obligated to make any contribution to project expenditure at this time, until St Barbara has completed a bankable feasibility study on the development of any non-potash orebody within the project area.
Australian Potash is looking to develop its A$208-million Lake Wells sulphate of potash (SoP) project, which could deliver 150 000 t/y of SoP, based on the maiden reserve of 3.6-million tonnes, and would have a mine life of 30 years.