Evolution Mining has formed an earn-in joint venture with Menninnie Metals, a subsidiary of Terramin Australia for the South Gawler gold-copper project in South Australia.
The South Gawler gold-copper project is a greenfield exploration project in the northern Eyre Peninsula of South Australia, approximately 320km northwest of Adelaide.
As per the joint venture agreement, Evolution Mining can earn up to 70% equity in the project for A$4m ($3m) of money spent on exploration over the next four years.
Terramin has the option of selecting to contribute, otherwise Evolution can additionally earn 10% (total of 80%) by further spending A$2m ($1.51m) over two years, after which a pro-rata period will operate.
Evolution can withdraw from the project, after spending a minimum amount of A$500,000 ($377,000) within the first year.
Evolution’s Discovery vice president Glen Masterman, said: “The Gawler Craton mineral province hosts several world-class gold-copper deposits and there are still large areas that have not seen extensive exploration.
“The South Gawler joint venture is a rare opportunity to secure a significant land position in an emerging area of this mineral province.”
South Gawler project’s main goal is the Iron Oxide Copper Gold (IOCG) breccia deposit located beneath the shallow to deep cover. It is claimed that a majority of the project area has not seen modern exploration and has only recently been recognised to have huge potential to host IOCG deposits.