Gold companies WPG Resources and Marmota are joining forces to investigate how they can cooperate to develop the latter’s Aurora Tank gold project in South Australia.
The Aurora Tank project is around 50km north-east of WPG’s Challenger gold mine and treatment plant.
Marmota has extensively explored the Aurora Tank area, with drilling intersecting multiple near-surface gold intersections over a strike length of 500m.
According to a memorandum of understanding (MoU) between the two companies, they will investigate ways for the processing of Aurora Tank gold at the Challenger site.
This will potentially be executed by toll treatment, joint venture, profit sharing or other arrangements, WPG reported.
WPG chairman Bob Duffin described the Challenger plant as a highly strategic asset, which was not only being used to treat ore from the company’s Challenger and Tarcoola mines, but could potentially be used as a processing hub for other gold deposits in the region.
“We already have a joint venture with Tyranna Resources in the Western Gawler Craton JV and there are a number of gold deposits held by this JV, and separately by Tyranna alone, that might also derive benefit from their proximity to our plant,” Duffin said.
WPG said the two companies would only cooperate on the Aurora Tank development if it proved technically feasible and financially viable to do so.