Newcrest Mining has entered a project generation alliance with Encounter Resources to identify new mining opportunities in Western Australia.
Newcrest will provide Encounter up to $500,000 over the next 12 months to generate project opportunities within an agreed alliance area in the state.
The alliance will use Encounter’s project generation team to identify new exploration and potential future production opportunities in northern Western Australia.
Encounter will manage project generation in the area, with projects submitted for potential joint venture subject to approval before any joint venture is formed.
Under the alliance, both companies will enter a 50:50 joint venture over any project/s approved for further exploration. Encounter has the option to maintain its 50 per cent contributing interest by co-funding its share of exploration expenditure. However, if it decides not too contribute on a 50:50 basis then Newcrest can increase its interest to 80 per cent by sole funding further exploration activities and delivering a JORC compliant resource greater than one million ounces of gold.
The alliance area excludes any ground that Newcrest or Encounter currently have a direct or indirect interest in or is under application by either party. The area also contains an exclusion zone and specifically excludes projects around the Telfer copper-gold mine in the Paterson Province of WA.
Encounter managing director Will Robinson said, “The alliance structure provides Encounter with significant leverage and resources to generate and advance a pipeline of projects with the potential to host one million ounce gold deposits in northern Western Australia.”