Monax Mining Limited (ASX:MOX) has signed a farm-in and joint venture agreement with Ramelius Resources (ASX:RMS) to earn a 60% interest in the Western Queen gold project in Western Australia.
The Western Queen gold project is strategically located 90 kilometres northwest of Mount Magnet and 40 kilometres northwest of Gascoyne Resources’ (ASX:GCY) Dalgaranga gold project.
Monax will earn its project interest at Western Queen by spending $2 million over three years on drilling, with the intention of extending the gold resource at the project.
It is worth noting that Ramelius has already estimated an indicated and inferred resource of 185,000 tonnes at 3.5 g/t gold for 21,000 ounces of gold at Western Queen South.
Western Queen has historically been mined for gold by Ramelius Resources, Equigold and Harmony Gold.
The previous explorers have mined 660,000 tonnes at 8.9 g/t gold for 188,800 ounces of gold from the Western Queen mine.
The Western Queen South mine has produced 220,000 tonnes at 3.6 g/t gold for 25,500 ounces of gold.
Importantly, the previous drilling below the existing Western Queen and Western Queen South open pits has identified two high grade shoots, both of which are open at depth.