16/07/2014 - 11:40

Doray to acquire Gnaweeda project

16/07/2014 - 11:40

Bookmark

Save articles for future reference.

Perth-based gold miner Doray Minerals has agreed to purchase a majority interest in Archean Star Resources’ Gnaweeda gold project in the Murchison region of Western Australia.

Doray to acquire Gnaweeda project

Perth-based gold miner Doray Minerals has agreed to purchase a majority interest in Archean Star Resources’ Gnaweeda gold project in the Murchison region of Western Australia.

The Gnaweeda project covers a largely buried greenstone belt located east of the Meekatharra-Mt Magnet greenstone belt.

Dominion Mining, Newcrest Mining, Helix Resources, Teck Cominco, Archean Star and other explorers have carried out gold exploration at the project since the mid-1980s. 

Doray’s managing director Allan Kelly said that the project purchase significantly increased the company’s land position in Murchison and added another advanced high-grade exploration project to its project pipeline.

Gnaweeda is 10 kilometres south-east of Doray’s Andy Well project, which is currently in production.

“A bit like Andy Well, Gnaweeda has been relatively underexplored despide some pretty exciting historical drill results,” Mr Kelly said.

“The game changer for Gnaweeda will be the ability to leverage off the existing mining and processing infrastructure at Andy Well.”

However the project tenements are subject to a series of existing joint venture agreements between Archean Star, Teck and Chalice Gold Mines.

Doray said it would make a $500,000 offer for Archean Star’s interest in the tenements, with a further $500,000 to be paid when Archean Star declared a JORC-compliant mineral resource over 150,000 ounces of contained gold at Gnaweeda.

Doray’s share price rose by 0.6 per cent to 81 cents at 11:30am. 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options