Evolution Mining has signed an earn-in and joint venture (JV) deal with Andromeda Metals over the latter’s Drummond gold exploration project, located in northern Queensland, Australia.
Covering around 5230km², the project is situated roughly 140km south of Townsville and 50km southwest of Evolution’s Mount Carlton operation.
Under the terms of the deal, Evolution is required to pay A$300,000 ($215,657) to Andromeda and invest A$2m ($1.43m) towards exploration costs over a two year period in exchange for a 51% interest in the Drummond project.
In the second stage, the company can acquire an additional 29% by paying a further A$200,000 ($143,771) and incurring A$4m ($2.87m) on exploration activities over two years.
Evolution Mining discovery vice-president Glen Masterman said: “The Drummond project is an exciting opportunity to leverage our expertise in epithermal gold deposits on a technically compelling project close to our Mount Carlton operation.”
The project contains outcropping gold-bearing veins similar in style and scale to the nearby Pajingo gold-silver deposit.
According to Evolution, the system is largely preserved as indicated by vein textures at several prospects in the project.
Besides, the Drummond project’s most prospective level for gold mineralisation is untested by drilling.
Once the deal is completed, Evolution will become manager and operator of the JV.
Andromeda Metals noted that the transaction will allow it to focus its efforts towards progressing the Poochera Halloysite-Kaolin Project.
In June this year, Andromeda signed a JV agreement (JV) over Minotaur’s Poochera tenements in South Australia.
Evolution operates five mines: Cowal, Cracow, Mt Carlton, Mt Rawdon and Mungari.