Newmont has acquired an interest in the Wild Horse prospect from Terramin, while the companies also terminated the South Gawler Ranges earn-in agreement, in South Australia.
The global gold miner has an opportunity to earn a 51 per cent interest in the Wild Horse earn-in by spending $3 million on exploration over four years.
A further $20 million over six years would see Newmont earn an additional 24 per cent, while reaching 90 per cent would turn Terramin’s interest into a 1 per cent net smelter royalty.
The Wild Horse tenement covers 462 square kilometres, located almost 100 kilometres east of Adelaide.
Previous aeromagnetic surveys of Wild Horse have found a magnetic body roughly 1300 metres by 2000 metres, at a depth up to 1400 metres.
The two companies will work together in the second half of 2021 to plan and conduct a drilling program to take advantage of the large anomaly.
The requisite approvals from the South Australian Department for Energy and Mining are still to be obtained.
Simultaneously, Terramin would like to dispose of the South Gawler Ranges agreement and hand the project over to Newmont.
The South Gawler tenement includes the Menninnie Dam resource, which has been found to have an inferred resource of 7.7 million tonnes at 5.7 per cent lead and zinc, with 27 grams of silver per tonne.
The assets cover over 4500 square kilometres, however, have been consider non-core assets by Terramin.
Terramin has appointed Discovery Capital Partners to facilitate the disposal of South Gawler to Newmont Australia.
The company also owns the Adelaide Hills’ historic Bird-In-hand gold mine, which produced over 30,000 ounces of gold between 1881-1889.