Western Australian nickel explorer Pioneer Nickel Ltd has agreed to enter into a joint venture with Australian Mines Ltd, to farm into the Golden Ridge Nickel Sulphide Project.
The Golden Ridge joint venture covers more than 100 square kilometres of highly nickel prospective tenements, located 30 kilometres north of Kambalda in WA.
Under the joint venture, Pioneer may earn an initial 51 per cent interest in nickel and other non-gold metals by expending $2.25 million exploring the joint venture ground within three years.
There are then provisions for Pioneer to increase its interest up to 80 per cent should Australian Mines elect to not contribute to exploration expenditure; and Pioneer meet further expenditure and development milestones.
Pioneer managing director David Crook said the joint venture, subject to the completion of final documentation, was an important development for the company.
"The joint venture is precisely aligned with the company's objective: to build shareholder wealth through the discovery and development of high value nickel resources in the Eastern Goldfields," Mr Crook said.
"It provides a substantial landholding in a world-class nickel region, and with anomalous nickel values identified in drilling at 11 prospects, it is primed for a nickel sulphide discovery."
Pioneer plans to dedicate up to $1 million this year for initial target appraisal and anticipates
drilling will commence at the joint venture in February 2006.
The tenements cover more than 20 strike kilometres of the Golden Ridge Ultramafics, which host the Blair and nearby Carnilya Hill nickel sulphide mines. The joint venture specifically excludes the Blair Mine.
