By entering into a joint venture with Rubicon Resources this week, explorer Empire Resources effectively doubled its gold exploration stakes around its assets near Kalgoorlie, Western Australia.
Under the terms of the joint venture, Empire may earn a 51% interest in Rubicon’s Mt McLeay tenements, 50 km northeast of Kalgoorlie.
The under-explored joint venture gold acreage is adjacent to Empire’s Penny’s Find gold deposit, which has an estimated gold resource of 314,000 tonnes.
Empire must spend $220,000 within 18 months to earn the 51% interest in the tenements.
The company could then take its total holding to 70% by spending an additional $500,000 over the following two years.
According to Empire managing director David Sargeant, the joint venture will allow the company to expand its resource base and further enhance the economics of the project.
“No deep drilling has been undertaken on any of the old Mt McLeay gold workings,” he said.
“We will follow a similar exploration model to Penny’s Find, where surface leaching has depleted gold in the first 10 to 20 m from the surface.
“Scoping studies completed earlier this year also indicated that Penny’s Find could support a highly profitable mining operation, given the current gold prices in excess of US$1,000 an ounce.”