Ramelius Resources has signed an exploration farm-in and joint venture (JV) agreement relating to Newmont Mining's South Monitor land package in south Nevada, US.
Under the agreement, Ramelius has the right to earn up to 80% interest in the gold project by incurring an expenditure of $8m over a period of eight years through staged earn-ins.
The company noted that the proposed deal complements its Jupiter farm-in and JV agreement with Renaissance Gold signed in June.
Around $250,000 is required to be spent by Ramelius in the agreement's first year, after then it has the right to withdraw and Newmont will retain the right to retrieve up to 70% equity in the project.
Ramelius is planning to perform infill drill testing around disseminated low sulphidation epithermal gold intersections at the project in order to confirm the mineralisation continuity.
In addition, the drill test is expected to generate a Joint Ore Reserves Committee (JORC) compliant resource and test for feeder structures below the gold intersections.
The company also intends to begin deeper diamond drilling within the September quarter to test the predicted feeder structures.
Located 40km south-east of Tonopah, the South Monitor Gold Project is situated 64km south of the Round Mountain gold mine.
Within the project, the company estimates a shallow disseminated epithermal gold exploration target ranging between 350,000oz-500,000oz and 0.89g/t to 1.50g/t of au.