According to Mining News Pro - Evolution Mining has entered into an earn-in joint venture (JV)
agreement with Andromeda Metals over the latter’s Drummond gold
exploration project in north Queensland.
Drummond is an
early-stage exploration project that covers around 520km square of the
northern Drummond Basin in Queensland, 50km southwest of Evolution’s
Mount Carlton gold operation.
It is considered to be prospective
in hosting high-grade epithermal gold deposits, such as the 3 million
ounce (oz) Pajingo gold field, located 70km to the west of the site.
According
to the JV agreement, Evolution will earn a 51 per cent equity interest
in the Drummond project after making a cash payment of $300,000 to
Andromeda and sole-funding $2 million on exploration activities over a
two-year period.
Evolution can increase its interest by a further
29 per cent for a total of 80 per cent. This can be fulfilled if the
second-largest ASX-listed gold miner provides an additional $200,000
cash payment to Andromeda and spends $4 million on the project
exploration over two years.
Evolution will act as manager and operator of the JV.
Evolution
vice president Discovery Glen Masterman said, “The Drummond project is
an exciting opportunity to leverage our expertise in epithermal gold
deposits on a technically compelling project close to our Mount Carlton
operation.”
Meanwhile, Andromeda will receive immediate cash funds
from the JV, and ensure the potential of the Drummond gold project
while still retaining an interest in the project.
The JV will also
allow Andromeda to focus its efforts toward progressing its Poochera
halloysite-kaolin project in South Australia. A recent second-round high
purity alumina (HPA) testing released by the company showed a purity of
99.99 per cent Al2O3 after only a single purification stage.
This
result confirms that the Poochera halloysite kaolin resource is
world-class feed material for HPA manufacture, possibly cutting
production time and costs by a significant measure.
http://www.miningnewspro.com/en/News/251447/Evolution and Andromeda enter gold exploration JV