Intrepid Mines has signed a farm-in and joint venture agreement with gold explorer and developer Ausgold to gain a stake of up to 80% in the Doolgunna Station project in Bryah Basin in Western Australia.
Image: Location of Ausgold’s Doolgunna Station Project. Photo: courtesy of Intrepid Mines Limited.
Currently, the Perth-based Ausgold owns 100% in Doolgunna Station, which is located 150km north east of Meekatharra. Estimated to contain Degrussa-style Volcanic Hosted Massive Sulphide (VHMS) and Plutonic-style orogenic gold deposits, the project tenement E 52/3031 is spread across an area of 192km2.
According to Intrepid, the Doolgunna Station project is located uniquely on the intersection of the Archean in the north-west and Proterozoic rocks towards the south-east. The company believes that the project holds prospects for Archean Plutonic-style gold mineralization and VHMS copper-gold mineralization.
In 2010, Ausgold collected reinterpretation and enhancement of aeromagnetic data from Doolgunna Station which revealed north-east striking shear-bounded structural corridors that are associated with Plutonic-style mineralization.
As per the terms of the deal, Intrepid, which is an Australia-based precious metals development and exploration company, has right to earn up to 80% interest in the project by spending $2,150,000 over a period of two years.
On meeting of the condition, Ausgold has the choice to either transfer 70% of its stake while retaining a 30% contributing stake in the project, or transfer 80% of its stake and retain a 20% stake that is carried free until a decision to mine is reached.
The agreement will enable required financing for an exploration program at Doolgunna Station. Ausgold, on the other hand, can also focus its exploration funds on its Katanning gold project in Western Australia through the deal with Intrepid.
Intrepid acting CEO Tony De Santis said: “We are very pleased to be entering into this farm-in and joint venture agreement and look forward to working with Ausgold on advancing the Project.
“The Agreement will benefit both parties by providing the necessary funding for an exploration program over the next two years, giving Intrepid significant exposure to the potential upside in the Project, whilst allowing Ausgold to focus its exploration funds on its 100%-owned Katanning Gold Project.”