Doray ponders Westgold JV

Gold miner Doray Minerals is considering a joint venture arrangement with Metals X spin-out Westgold Resources over its Gnaweeda project.

Perth-based Doray said today it had entered into a memorandum of understanding with Westgold to assess and evaluate commercialisation plans for Gnaweeda, with the agreement to expire by the end of next month.

At that point, the two companies will have to evaluate their options.

“This agreement will provide Doray the opportunity to investigate potentially developing and treating the Gnaweeda mineral resource through the Andy Well processing facility and Westgold’s nearby large-scale processing facilities,” Doray managing director Leigh Junk said.

Doray in July made the decision to mothball the Andy Well mine, while a final investment decision on Gnaweeda is expected to be revealed by the end of the year.

Doray has previously touted using the Andy Well processing infrastructure to treat gold ore from Gnaweeda.

Shares in Doray were unchanged at 18.5 cents each at 1:30pm.