AngloGold Ashanti Australia is to invest up to A$25m ($19.1m) to explore Saracen’s Carosue Dam North tenements under a farm-in and joint venture agreement.  

The deal comprises two tenement packages, Butcher Well and Lake Carey, which cover approximately 339.56km north of Saracen’s Carosue Dam project in Western Australia.

AngloGold will spend the amount for exploration over a six-year period. 

"The start of Carosue Dam North exploration programme will add to aggressive drilling activity being undertaken by Saracen as part of its A$42m budget."

Saracen managing director Raleigh Finlayson said: “The agreement with a company of AngloGold’s standing and exploration track record reflects the quality of the Carosue Dam North tenements and supports Saracen’s strong belief in the potential of this world-class district.

“We look forward to the start of the Carosue Dam North exploration programme, which will add to the aggressive drilling activity already being undertaken by Saracen as part of its current A$42m exploration budget.”

Under the agreement, AngloGold can earn up to 70% of the JV by spending A$15m ($11.4m) within 48 months from start date to earn 51% and a further A$10m ($7.6m) within 24 months to earn 70%.

AngloGold will also act as the manager during the farm-in period.

Field work will start after procuring all the necessary permissions and fulfillment of all conditions.