Newcrest Mining and Encounter Resources have formed a series of exploration joint ventures in Western Australia as a result of a project generation alliance established between the companies last year.
The five separate JVs — Selby, Watts, Lewis, Phillipson and Aileron — cover 4400km2 of the Tanami gold province and West Arunta. Each JV will initially be on a 50:50 basis.
Encounter will receive up to $1 million in funding from Newcrest, including a $100,000 payment once the Phillipson JV has been executed, a payment of $400,000 following the later of July 1 or the grant of tenement E80/5045, and a $500,000 payment if Newcrest decides to continue activity on tenement E80/5045 12 months after the grant.
If a mining decision is made, Encounter can also enter a production JV with Newcrest, which will manage each exploration JV.
Encounter managing director Will Robinson said the Tanami region of Western Australia ticked so many boxes.
“It is a true district-scale opportunity where new datasets provided by the Geological Survey of WA have significantly enhanced prospectivity,” Robinson said.
“Limited prior shallow drilling has outlined footprints of several potential major mineral systems. Aileron and Phillipson are genuine first-mover opportunities in untested regions where new data is opening up mineral exploration.”
Newcrest and Encounter launched the project generation alliance to identify new mining opportunities in Western Australia last July.
The alliance saw Newcrest provide Encounter up to $500,000 over a 12-month period to generate project opportunities within an agreed area in the state.