Dampier Gold today announced its decision to enter a joint venture with Torian Resources in relation to its promising Zuleika Project gold tenement.
Zuleika Project is situated at the north end of the vast Zuleika Shear – Australia’s fourth largest gold producing area - about 40 kilometres from Kalgoorlie.
Dampier has affirmed it will enter into a farm-in arrangement with Torian, culminating in a 75 per cent stake in the Zuleika Project, in exchange for an investment of $1 million over the next four years.
Dampier executive chairman Malcolm Carson, said his company had secured a significant tenement position in one of the world’s most prolific gold-producing areas.
He said 1,000 metre reverse circulation and 2,600 metre air-core drilling programs had been undertaken at Credo Well, another project where Dampier and Torian operate under a JV agreement.
Mr Carson said Dampier would repeat this process in the Zuleika Project tenement, which would allow Torian to focus its energies on its Mount Stirling Gold Camp tenement in the Leonora region.
Torian non-executive chairman Louie Simens said his company’s aim was to uncover the best prospects to provide a pipeline of drill targets at the Mt Stirling Gold Camp for the best opportunity of a Gwalia-type discovery.
Gwalia was once one of Australia’s most successful mines, producing gold from 1890 to 1963.
Mr Simens said he was seeking new drilling contractors and wanted to emphasise that a concerted effort would be made to keep cost per-discovery ounce as low as possible while maximising tonnage.