Newcrest Mining has inked a $60 million agreement with Antipa Minerals to explore the southern portion of the junior’s ground in the Paterson Province, Western Australia.
The project, called Wilki, comprises 1700 square kilometres of ground which includes existing gold-copper resources at Minyari-WACA.
It also hosts the newly discovered Reaper-Poblano-Serrano gold-copper trend.
The Wilki project is in proximity of the Winu (Rio Tinto), Citadel (Antipa-Rio Tinto), Havieron (Greatland Gold-Newcrest) and Telfer (Newcrest) projects.
“This transaction demonstrates Newcrest’s commitment to the region and its strong belief in the prospectivity of the Wilki project, which is strategically located surrounding its long-running Telfer gold-copper operation and ore processing facility,” Antipa chairman Stephen Power said.
“The agreement with Newcrest is designed to ensure a robust exploration program will be undertaken across the Wilki project over the coming years, including the rill testing of a number of highly prospective targets.
“Furthermore, the share placement positions Antipa in a strong financial position enabling the company to progress exploration activities on its remaining 100 per cent owned tenure.”
Newcrest could earn up to a 75 per cent interest in the Wilki joint venture (JV) in a staged process.
The company has committed to sole fund at least $6 million expenditure within two years of executing the agreement.
Newcrest plans to prepare the initial program, which is expected to include field reconnaissance program, aerial electromagnetics survey, induced polarisation survey and reverse circulation and diamond core drill programs.
Antipa is set to manage operations during this early period and will receive a 10 per cent management fee on eligible expenditure.