Rugby withdraws from De Grey Mining’s Great Northern Gold Project

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Image credit: www.rugbymining.com

Canadian exploration company Rugby Mining Limited has notified West Australian miner De Grey Mining that it will not be proceeding with its earn in to the Great Northern Gold Project, formerly known as the Turner River Gold Project.

Image credit: www.rugbymining.com
Image credit: www.rugbymining.com

The Great Northern Gold Project is located in the Pilbara district of Western Australia, 60 km south of Port Hedland. The region is home to a massive industrial base associated with oil, natural gas, iron ore extraction and the Telfer gold mine operation.

De Grey and Rugby Mining had an agreement for the Great Northern Gold Project under which Rugby had a three year option to acquire an 80% interest in the Tenements by incurring a total of AUD$2 million in expenditures with a minimum expenditure commitment of AUD$500,000 and a commitment to drill in the first six months.

Rugby also had an option to purchase an 80% interest in the historic near surface resource at Wingina Well for AUD$3 million, by paying AUD$2 million at any time within 54 months from the date of the Agreement and a further payment of AUD$1million within 30 days of a decision to mine any part of the historic resource at Wingina Well.

Rugby’s withdrawal from the project to concentrate its efforts on the exploration of their Northern hemisphere projects means that De Grey will continue to hold 100% of the tenements that comprise the project.

“The Company is currently reviewing any outstanding handover issues and the database associated with the Project and will provide a more detailed report in due course,” De Grey Mining said in a statement to the ASX.