Monax Mining has entered a farm-in and joint venture agreement with Ramelius Resources for the Western Queen gold project in Western Australia.
Under the agreement, Monax Mining will earn a 60 per cent interest in the project, located around 90km north west of Mt Magnet.
Monax will earn the interest by spending $2 million over three years on drilling and with the intention of extending the gold resource at the project.
The Western Queen mine has previously produced 660,000 tonnes at 8.9g/t Au for 188,800 ounces of gold and the Western Queen South mine has produced 220,000 tonnes at 3.6g/t Au for 25,500 ounces of gold.
Monax plans to conduct a drilling program over the next 12 months to test for extensions of the known high-grade shoots below both the Western Queen and Western Queen South open pits.
Ramelius previously estimated an indicated and inferred resource of 185,000 tonnes at 3.5g/t Au for 21,000 ounces of gold at Western Queen. This pit also hosts a number of pegmatites which could potentially host lithium minerals.
Monax expects to estimate a new resource at both open pit mines once existing drilling has been reviewed and verified.