Gold miners take advantage of favourable gold prices

Waratah Gold will team with Cazaly Resources to develop a number of gold deposits in WA.

Waratah Gold has signed a farm-in agreement with Cazaly Resources to develop a number of deposits in the WA Goldfields region.

Under the joint venture agreement, Waratah will develop the Mick Adam and Wadi Gold Deposits to take advantage of favourable gold prices, which are now returning more than $1000 an oz.

Waratah managing director, Andrew Maurice, said the project will “capitalise on short-term development opportunities” in the region and provide an “excellent opportunity” to deliver revenues.

Under the terms of the agreement, Waratah will manage the project and claim a 50% stake in the development until 2014.

The company expects to complete a scoping level study within four months and make a final decision to mine by August 2010.

The project area contains more than 220,000 oz of gold deposits, which are expected to require relatively low capital expenditure requirements and operating costs.

Waratah is seeking further advanced projects with short-term development options in Australian and overseas.

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