Newcrest Mining has inked a farm-in agreement with Laneway Resources which will see it fund exploration at the Southern Coromandel gold project.
The deal will see Newcrest earn up to 80 per cent of the project, however the amount of money the company will have to spend was not disclosed.
While Newcrest will solely fund two stages of work programs, Laneway will be the manager of the project during the earn-in period and will earn a management fee.
Following the farm-in period, the companies may enter into a joint venture to jointly fund future development.
The Southern Coromandel gold project is located on the North Island of New Zealand in the Hauraki goldfield. The project lies in the same district as Newmont’s operating Waihi Mine.
Laneway’s executive chairman, Stephen Bizzell, said he was pleased to announce the deal with Newcrest.
“This agreement with Newcrest clearly illustrates the potential at the Southern Coromandel Gold Project and vindicates the company’s decision to secure the highly prospective exploration ground in a region that has historically produced over 45 million ounces of gold and silver.”
Mining occurred in the Southern Coromandel project area between 1860 and 1952, with workings reaching a depth of up to 140m from surface.
Laneway said there remains scope for down dip and strike extensions of this mineralisation.