Drummond Gold has reached agreement with Straits Resources to earn a majority interest in the Yandan gold project, allowing Drummond to increase its gold Resources.
Announcing the agreement today, Drummond Managing Director Doug Grewar said Yandan constitutes a landmark expansion and advance towards gold production for Drummond.
“Yandan represents a doubling in scale and a potential shortening of the time frame for Drummond’s proposed mining and processing operations in and around the historic North Queensland gold mining centre of Mt Coolon,” Grewar said.
Drummond has agreed to earn in to a proposed Joint Venture with Straits Gold (a wholly owned subsidiary of Straits Resources) at Yandan.
Drummond will spend $3 million and fund its share of environmental bond obligations to earn 51% of Yandan over a period of up to three years. Under the terms agreed, either party may then extend or choose to dilute its interest in the project.
Yandan, in the Drummond Basin gold province, is 155 km south of Charters Towers and 45 km west of Mt Coolon.
The Yandan mine produced more than 365,000 oz of gold for Ross Mining during the 1990’s.
The Yandan project comprises two mining leases containing three former open pits, one granted Exploration Permit (EPM) and one EPM under application.
