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Mining industry

Barrick-Placer Signs Deal with Red 5 Ltd and Gateway Mining Nl

Strategic Insights

— 1 min read

Placer, a leading gold major, has solidified its presence in Western Australia's gold exploration scene by partnering with junior Australian companies Red 5 Ltd and Gateway Mining Nl. The three-way agreement allows Placer to earn a 60% stake in the WA tenements by investing $A2.5 million within the first three years. This strategic move positions Placer to potentially unlock multi-million ounce gold resources in the region. The partnership holds significant implications for the companies involved, with Red 5's managing director, Greg Edwards, highlighting the project's vast exploration potential.

Key Takeaways:

  • Placer, a gold major, has signed a three-way farm-in, joint venture deal with Red 5 Ltd and Gateway Mining Nl covering tenements in Western Australia.
  • The agreement enables Placer to earn a 60% stake in the WA tenements by spending $A2.5 million within the first three years.
  • Gateway Mining Nl and Red 5 Ltd will hold a 20% interest each in the Gum Creek Greenstone project once Placer has earned its 60% stake.
  • Red 5's managing director, Greg Edwards, believes the joint venture project has the potential to host a large, multi-million ounce gold resource.
  • Placer has already identified a high-priority target with geological similarities to its nearby Wallaby mine, which produces 300,000 ounces of gold per year.
  • The Wallaby mine will facilitate the fast development of any discovery in the joint venture project.
  • Last week, Placer signed an earlier deal with Gateway to earn 70% of the Gidgee gold project in WA by investing $4 million.

Statistics:

  • $A2.5 million: The amount Placer will spend to earn a 60% stake in the WA tenements within three years.
  • 300,000 ounces: Annual gold production at the nearby Wallaby mine.
  • 20%: The interest Gateway Mining Nl and Red 5 Ltd will hold in the Gum Creek Greenstone project once Placer has earned its 60% stake.
  • $4 million: The amount Placer invested to earn 70% of the Gidgee gold project in WA.

Sources:

  • Asia Pulse - "Barrick-Placer signs deal with Red 5 Ltd, Gateway Mining Nl" (Jan 23, 2023)
  • Red 5 Ltd - ASX: RED
  • Gateway Mining Nl - ASX: GML

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