Ord River Resources (ASX: ORD) is proceeding with its farm-in to Dampier Gold’s (ASX: DAU) Plutonic Dome Project in Western Australia after all conditions were satisfied.
The previously producing Plutonic Dome has an estimated global Resource of 5.5 million tonnes at 3.8 grams per tonne for 683,000 ounces of contained gold.
It has established infrastructure in place, including an existing box-cut and decline, more than 85 kilometres of high quality haul roads, and Barrick Gold’s nearby Plutonic processing facility.
Since gold mining commenced in 1990, more than 5 million ounces of gold has been produced from 57 open pits and 4 underground mines throughout the greenstone belt, including some 580,000 ounces from 40 mostly shallow open pits within the project area.
Farm-in Details
Ord River is earning up to 75% in Plutonic Dome by sole funding $6 million in exploration expenditure over two years.
It is required to spend the first $2 million before 2 October 2014 to earn an initial 30% interest.
The farm-in will accelerate the exploration and possible development of the project with Ord planning to focus pre-development activities on the advanced K2 and Trident deposits.
Framework terms continue in place for a proposed ore purchase agreement to access the Plutonic Mine processing facility enhancing the prospect of rapid and successful development.
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