Mineral hunter Solomon Gold (AIM: SOLG) said it had finalised a joint venture agreement with a subsidiary of Newmont Mining (NYSE:NEM), a top tier gold producer, over some of its exploration projects Guadalcanal Island in the Solomon Islands, which are part of the Pacific Rim of Fire.
The joint venture will see Newmont earn up to a 51% interest in five licences by expending US$6 million over 3 years for the Stage 1 earn-in. Assuming Newmont completes its obligations and elects to take the 51% interest, it will then have an option to expend a further US$6 million over a further 2 year period to increase its interest to 70%.
Since listing on AIM, Solomon Gold has spend A$18 million exploring for copper porphyry’s within its projects, and has gathered an extensive amount of data on multiple targets that require follow up.
Solomon Gold will act as operator of the joint venture, and will receive a fee of between 5-10% of the exploration costs. Newmont will also supply to geologists to Guadalcanal Island to assist the exploration program.
“Field work for the project has commenced, based on an agreed program and US$2 million budget for the next 12 months. The program will focus on the Chupukama, Vurakara and Kuma target areas in central and southern Guadalcanal,” the company said.
“Initial phases will consist of detailed mapping and grid soil and rock chip sampling, followed by a planned minimum of 2,800 metres drilling. The program will also include planned airborne electromagnetic and magnetic programs aimed at further defining drilling targets.”