Ram Resources has formed a new relationship in the Pilbara, and allowed Newcrest Operations Limited to acquire options over two of their tenements in the Pilbara near the Telfer gold-copper mine.
The tenements are described as “non-core” by Ram, and will attract $30,000 from Newcrest per year in order to meet the minimum expenditure requirements for retention of exploration rights.
Newcrest now has the right to acquire tenements E45/2727 and E45/2726 at any time over the next three years.
In the case of tenement E45/2727, Newcrest has agreed to pay $500,000 on election to exercise the option plus a net smelter royalty of 1.5 per cent, and for E45/2726 Newcrest will pay $250,000 with the same smelter royalty.
Ram managing director Bill Guy said the company stands to benefit from Newcrest’s extensive experience in the Telfer area, as well as no longer having to incur costs with respect to these tenements.
“The agreements allow Ram to benefit from any exploration success enjoyed by Newcrest on these tenements while allowing us to focus our resources on the company’s exploration programs in the Fraser Range belt in WA,” he said.
Ram will soon engage in an extensive exploration electromagnetic and drilling program in its Fraser Range projects, a belt known to host major deposits which has already yielded promising results.