Local miner Western Areas is extending its exploration program in South Australia, inking farm-in and joint venture agreements with Gunson Resources and Monax Mining.
Western Areas will be able to acquire up to 90 per cent interest in key tenements in South Australia’s Western Gawler region, which the company believes is highly prospective.
The staged agreement with Gunson enables Western Areas to purchase interest in the project by expending $1.2 million over four years, subject to various criteria.
The agreement with Monax is similar but has a different hurdle for Western Areas to withdraw.
The company said the exploration strategy was predicated on its strong cash flow position and ability to effectively evaluate early to mid-stage exploration opportunities.
Managing director Dan Lougher said the opportunity offered significant discovery potential.
“Regional exploration sits alongside our Forrestania exploration program and we have been very clear that with our positive cash flow generation that we would look to take first mover style opportunities where the initial investment is relatively low, but the potential rewards are high,” he said.
“Our exploration team is ready to immediately begin a work program aimed at identifying high priority drill targets.”
Western Areas was up 1.2 per cent to $4.41 at the time of writing.