Australian gold producer Doray Minerals has entered into a farm-in Agreement with Rox Resources Limited to explore the highly prospective and underexplored Mount Fisher Gold Project located in the north-eastern Goldfields of Western Australia.
Located approximately 230km north of the town of Leonora, the Mount Fisher Gold Project comprises a number of exploration tenements covering approximately 480 square kilometres within the underexplored Mt Fisher greenstone belt.
Doray’s Managing Director Allan Kelly described the farm-in as “another strategic exploration” for Doray which will add to the company’s highly prospective Horse Well JV and Western Gawler farm-in in South Australia.
He said Mount Fisher represented a very attractive exploration opportunity for Doray, given the many similarities with the multi-million ounce Agnew-Lawlers gold camp, and its relative lack of recent systematic exploration.
“We believe, given the geology, structural setting and results achieved to date, that there is the potential for discovery of a significant gold deposit within the Project area and we look forward to working with Rox to advance the Project,” Mr Kelly added.
The farm-in agreement will see Doray spend $1m in the first 12 months from commencement in a non-withdrawal period. Should the company elect to continue, it will be required to spend a further $4m over 24 months to earn 51%, and additional $5 million over 24 months to earn 75%.
Other key terms of the agreement include:
- Rox to be free carried through to delivery of a PFS
- Rox to then elect to either contribute pro-rata, or dilute to a 1% NSR once below 5%
- Doray to meet Rox’s obligations under the Brewer Option agreement, being $100k payments as at 30 June 2016 and 30 June 2017
- Doray and Rox to met final payments on the Brewer Option 50:50 ($300k each)
- Rox to meet residual commitments under the Avoca Sale and Purchase Agreement.
Doray said it plans to commence an immediate review and initial filed reconnaissance of identified target areas within the project.
“Initial geophysical and geochemical surveys will then be carried out to determine the potential for discovery within these new target areas,” the company told the ASX.
“Doray has already identified several potential target zones in the area, with potential analogues to Agnew and Lawlers.”