GME Resources Ltd (ASX:GME) has signed an agreement with Zeta Resources Ltd (ASX:ZER) to farm into the Murrin Murrin gold project in the North-Eastern Goldfields of Western Australia.
GME will manage the project and fund $1.5 million in exploration and development costs within 24 months to earn a 50% interest in the project.
On completion of the earn-in, both GME and Zeta will enter into a 50:50 joint venture to further develop the project.
The North-eastern Goldfields is a district with significant gold, nickel and base metal prospectivity and favourable infrastructure.
The Murrin Murrin project comprises 16 largely contiguous tenements covering 50 square kilometres just north of GME’s Mount Kilkenny and abuts its Hepi Nickel Laterite Project.
A JORC 2012 indicated resource of 547,000 tonnes at 3.12 g/t gold for 54,875 ounces has been defined at Murrin Murrin in 2014.
Dacian Gold Ltd’s (ASX:DCN) Mt Morgans Project and St Barbara Ltd’s (ASX:SBM) Sons of Gwalia lie within a 30 to 55 kilometre radius of the Murrin Murrin project area.
Sporadic gold and base metal exploration and mining has been undertaken at Murrin Murrin since the late 1800’s.
Relatively recent gold mining was completed by Dominion Mining in 1995 when 126,531 tonnes were mined at an average grade of 3.5 g/t gold for 14,157 ounces of gold.
GME is developing the 100% owned Devon Gold Mine in the north eastern goldfields of Western Australia.
GME finalized the sale of the first batch of ore at the April 2016 gold price of $1620.46 an ounce.
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