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.