C’moly, Barrick form JV on gold search

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Source:

The National,Friday13January 2012

A JOINT-venture arrangement between Coppermoly and the world’s largest gold miner, Barrick Gold, has been consummated-clearing the way for the Gold Coast company to pursue other exploration opportunities.
Coppermoly managing director Peter Swiridiuk said Barrick had now spent US$20 million on drilling at its three tenements in Papua New Guinea as prescribed in the 2009 farm-in agreement.
This had earned the Canadian giant a 72% stake in each of the three PNG tenements.
“In accordance with the farm-in agreement, a joint venture for the further exploration and evaluation of the tenements will now be formed,” Swiridiuk said.
“Coppermoly will retain a 28% interest in the three tenements and its cash contribution up to the completion of a feasibility study will be delayed until the commencement of production.
“When production starts in a few years time, money will be forthcoming.”
He said the joint-venture approach with the Simuku, Nakru and Talelumas tenements on PNG’s New Britain Island meant Coppermoly was able to undertake other exploration in Queensland and PNG this year.
The company would start drilling for gold and copper west of Gympie by March and hoped to make major progress at the site this year.
Swiridiuk said Coppermoly also had its eyes out for other exploration opportunities in Queensland.