Ark Mines (ASX: AHK) has inked an agreement with Arafura Resources (ASX: ARU) to mine, farm into and become a joint venture partner in Arafura’s Mt Porter and Frances Creek gold projects in the Northern Territory.
Not only will Ark add an advanced gold project to its portfolio, but it will also gain a mineable gold resource with the company granted an immediate right to mine the Mt. Porter ML23839, subject to obtaining necessary governmental permissions.
Mt Porter hosts a resource of 300,000 tonnes at 3.1 grams per tonne (g/t) for 34,200 ounces of contained gold, which is expandable with well defined targets.
Ark can also earn a 40% interest in Arafura’s Mt. Porter tenements, as well as the rights to explore for and mine gold in the advanced Frances Creek tenements over a period of 30 months by spending A$400,000.
The company can earn a further 30% interest in both projects by spending a further $1.6 million over 24 months and defining a 100,000 ounce resource, not including the Mt Porter Resource.
Alternatively, Ark can exercise an option to acquire 100% of the projects for $2 million.
If Ark decides to complete the second earn in to take its interest to 70%, a joint venture between Ark and Arafura will be formed.
The Mt Porter and Frances Creek projects lie around 20 kilometres to the north of Pine Creek and 165 kilometres south of Darwin in the Northern Territory.
Mt Porter
Mt Porter is a shallow deposit, conducive to open cut mining and located proximal to working gold mills.
Environmental approval has been issued by the Northern Territory and Australian Governments and a mining lease has been granted.
The Mt Porter project has been explored by a number of companies since the mid-eighties, including Renison, Homestake and Arafura.
A new zone of mineralisation was found called the “248” zone which is open along strike and dip.
Significant results were gained and it was concluded the southwest target should be followed up along with other targets which were identified.
Drill testing of the western limb of the Mt Porter Anticline along its entire length and within the vicinity of the known resource will be the focus of an immediate exploration program.
Ark plans to mine the Mt Porter Gold Project immediately following the expanded drill program.
Frances Creek
In the Frances Creek area, some 5 kilometres to the north-east of Mt Porter, previous drilling by Arafura on a number of vein deposits, including the Golden Slips and Golden Honcho deposits, has encountered high gold grades within quartz veins hosted by sandstone.
Grades as high as 47.5g/t gold over intervals of up to 4 metres were recorded.
The Golden Honcho deposit is open along strike to both north and south and at depth.
Ark will undertake resource evaluation as well as a major drilling program on these prospects.
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