Blackham Resources Ltd (ASX:BLK) has signed a joint venture agreement with GWR Group Ltd (ASX:GWR) for GWR’s Wiluna West Gold Project in Western Australia.
The Wiluna West Gold Project contains a combined JORC 2004 and JORC 2012 resource estimate of 289,000 ounces gold grading 2.2 g/t gold.
The agreement provides for Blackham and GWR to delineate and mine gold deposits at Wiluna West and for processing to take place at the Blackham’s nearby processing plant.
The deal provides GWR with a lower-cost pathway to gold production and provides Blackham with a low-risk opportunity to generate additional earnings.
Blackham’s executive chairman Milan Jerkovic said: "This joint venture is an opportunity to partner with an emerging junior gold miner in the Wiluna district and aligns with Blackham's strategy to utilise the Wiluna Plant to process external party ore as it seeks to optimise free milling operations as part of its transition to its Stage 1 Sulphide Expansion."
GWR is responsible for drilling deposits to JORC 2012 Indicated category and Blackham will conduct feasibility studies, and if positive, undertake mining, transport and processing of the gold deposits.
Under the joint venture, Blackham will have a 65% interest and GWR a 35% interest of both mining and processing costs and on the gold produced.
The initial focus will be on the Golden Monarch, then Emu and Eagle deposits where mining approvals are well advanced.