WPG Resources Ltd (ASX:WPG) has executed a memorandum of understanding (MoU) with Marmota Ltd (ASX:MEU) regarding the Aurora Tank Gold Project in South Australia.
Aurora Tank is within Marmota’s 100% owned tenement located 50 kilometres from WPG’s flagship Challenger Gold Mine.
The MoU will investigate ways of cooperating for the development Aurora Tank, should it prove technically feasible and financially viable to do so.
The parties will investigate ways for the processing of Aurora Tank gold mineralisation at Challenger, whether by toll treatment, joint venture, profit sharing or other.
WPG’s chairman sees synergetic opportunities
Bob Duffin, chairman, said: “Our Challenger plant is a highly strategic asset.
“Not only is it being used to treat ore from our own Challenger and Tarcoola mines, but it can potentially be used as a central processing hub for the efficient and cost effective treatment of ore from other gold deposits in the area.”
The Challenger processing plant can feed more deposits
WPG already has a joint venture with Tyranna Resources Ltd (ASX: TXY) in the Western Gawler Craton Joint Venture (WPG 25%, TYX 75%).
READ: Tyranna Resources drills high-grade gold near the Challenger Gold Mine
There are a number of gold deposits held by this joint venture, and separately by Tyranna alone, that might also derive benefit from their proximity to the Challenger plant.