Murchison is Evolution’s second cooperative mission after the company acquired a majority stakes in Glencore’s Ernest Henry copper-gold operation in 2016.
The Australia-based leading gold miner company, Evolution Mining has signed a pact of joint venture deal with the nation’s mining company, Enterprise metals that concentrates on gold exploration. The agreement has been made to focus on the latter’s huge early Murchison exploration mission located in Western Australia.
According to reliable sources, the Murchison project is seen as a probable option for the Archaean greenstone gold reserves. Furthermore, it involves the poorly tested extensions of the Cuddingwarra shear and Big Bell zones. It is claimed that there are multi-million ounce of gold deposits at Mount Magnet, Cuddingwarra and Big Bell.
Apart from the above mentioned, the adjacent gold mines comprise of Westgold’s Big Bell which is known with a historical production of 2.8 million ounces. There are also gold mines Cuddingwarra and Day Down with 800,000 ounces and 1.7 million ounces of production respectively.
The gold miner Evolution made an initial $150,000 cash payment to its JV partner, Enterprise after signing the deal contract.
Glen Masterman, Evolution VP and business development was quoted to say that Murchison can be viewed as a compelling exploration project located in a rich gold district. He opined that the location offers a rare opportunity which can be explored to the fullest as the prospective area has been poorly tested and remain under shallow cover.
It is reported that Evolution, who is playing a project operator through the earn-in duration is going to spend approximately $6 million on exploration for the next 4 years and own 80% stake in the entire operation. Also, the firm will disburse an additional cash payment of $150,000 to Enterprise if the agreement continues to exist even after a period of 2 years.
Sources close to the matter report that Murchison is Evolution’s second cooperative mission after the company acquired a majority stakes in Glencore’s Ernest Henry copper-gold operation in 2016. The completion of the Murchison JV deal will be based on standard regulatory conditions.