GME Resources has executed a binding term sheet for entering into a JV agreement with Zeta Resources on the Murrin Murrin Project located within the highly prospective North-Eastern Goldfields of WA.
According to the company, a binding terms sheet covering the agreement has been signed between its wholly owned subsidiary Golden Cliffs NL (GCNL) and Zeta’s 100% own subsidiary Kumarina Resources (KMR).
Under the terms of the agreement, GCNL will fund $1.5 million in exploration and development costs to earn 50 % interest in the project within 24 months of date of agreement.
GME said that GCNL will have the right to withdraw from the Earn In at any time, provided it has spent at least $250,000 on exploration and development.
According to the company, on completion of the Earn In, both GCNL and KMR agree to enter into a 50:50 Joint Venture to further develop the project, with GCNL to both manage the project and the JV.
The agreement will see the two parties contribute to expenditure of the Project in proportion to their joint venture interest, with a dilution formula to apply if either party does not contribute.
The agreement also states that should a party’s interest dilutes to below 10%, that party’s interest will revert to a 2% Net Smelter Royalty.
The Murrin Murrin Project comprises 16 largely contiguous tenements covering 50,3km2. Sporadic gold and base metal exploration and mining has been undertaken at Murrin Murrin since the late 1800’s. Relatively recent gold mining was competed by Dominion Mining in 1995 when 126,531 tonnes at an average recovered grade of 3.5 g/t for 14,157 ounces was extracted from the shallow pits at the Malcolm and Challenger deposits.
A JORC 2012 Indicated Mineral Resources Estimate of 547Kt @ 3.12 g/t Au for 54,876 ounces has been delineated immediately beneath and along strike of the Malcolm-Challenge shallow open cut pits.
While outside of the Malcolm-Challenger resource area has not been subjected to a modern concerted exploration effort, historical exploration has defined numerous gold and base metal prospect/targets.
GME Managing Director Jamie Sullivan said the agreement will increase the company’s landholding in the highly prospective and favourably located North-Eastern Goldfields in WA.
“The Murrin Murrin Project is an excellent fit with our portfolio and recent in-house experience & capabilities of promptly monetising gold assets in the North-Eastern Goldfields,” Mr Sullivan concluded.