Newcrest Mining has started gold exploration at a tenement in North Queensland.
The company has commenced exploration as part of an agreement it has with Mungana Goldmines.
Under the deal, Newcrest will spend up to $20 million over a period of up to eight years focusing on exploring for large gold-copper porphyry deposits at the Chillagoe Project.
Initial on-site activities planned by Newcrest includes up to 1000 high-detection multi-elemental geochemical soil samples, and 8,000m of diamond core drilling and sample analysis.
According to the company, the exploration program and associated work plan has been designed to define new gold targets to conduct initial discovery drilling to delineate new gold resources on Mungana’s southern tenements.
Mungana’s managing director, Tony James, said Newcrest’s exploration commitment highlighted the significant gold-copper porphyry potential at Chillagoe.
“Newcrest will use its substantial skills and resources to test the gold-copper porphyry potential at Chillagoe while Mungana pushes ahead with its plan to develop its high-grade King Vol zinc deposit,” James said.