Newcrest Mining has significantly expanded its joint venture (JV) with Encounter Resources by securing a large exploration tenure in Western Australia.
The Aileron and Selby JVs have secured an additional 1400 square kilometres of exploration tenure, a 30 per cent increase in tenement covering 5900 square kilometres of the Tanami gold province and West Arunta.
The expansion will allow Tanami and West Arunta’s exploration program to launch in 2019.
Newcrest and Encounter share five separate JVs where the latter’s 50 per cent interest will be reviewed based on its contribution to the share of exploration expenditure after June 2019.
“We are delighted that the project generation alliance continues to create exciting new opportunities for Encounter and Newcrest,” Encounter managing director Will Robinson said.
“With a substantial exploration program planned for the Tanami and West Arunta in 2019, it is pleasing that the generative work continues to build on the five joint ventures already established under our project generation alliance with Newcrest.
“These projects have the potential to host gold deposits of sufficient scale to attract a major gold company like Newcrest, and as such, they provide Encounter shareholders with significant leverage to a pipeline of quality projects with unquestionable scale potential.”
The Selby JV, covering the most western end of the West Tanami project area, expanded by 300 square kilometres to cover new targets adjacent to the seven kilometre-long Mohave and Afghan gold trends, which are scheduled for drilling in 2019.
Meanwhile, the Aileron JV increased by 1100 square kilometres to include additional targets and now extends over 70 kilometres of the West Arunta, with diamond drilling to commence this year.