Sunshine Gold (ASX:SHN) has completed a farm-in and joint venture (JV) agreement with Rockfire Resources (LON:ROCK) for the Lighthouse tenements, which are now part of the consolidated Ravenswood West Project in Queensland.
Under the agreement which covers tenements EPM25617 and EPM26705, Sunshine has the right to earn up to a 75% interest by sole funding $2.2 million of expenditure over 3 years. There is also no upfront consideration payable to the company.
At the conclusion of the farm-in Rockfire has 60 days to elect to contribute its 25% share of expenditure, or convert its 25% share to a 1.5% net smelter royalty (NSR).
The agreement stipulates that Sunshine may withdraw at any time during the earn-in period and retains no interest. Sunshine will also manage the project.
Speaking to Mining.com.au on the sidelines of the Brisbane Mining Investor Conference today (22 March), Sunshine Gold Managing Director Dr Damien Keys says the JV provides the company scope to continue growing its resource base.
“The Rockfire guys have been fantastic and we think we have a farm-in and JV agreement that is value-accretive for both parties. With this agreement then, we expect to grow that 50,000 ounces.
We think the Ravenswood district as a whole has got so much potential and we’re trying to situate ourselves in that neck of the woods and take a really nice landholding with some advanced targets.”
“The Rockfire guys have been fantastic and we think we have a farm-in and JV agreement that is value-accretive for both parties”
The MD adds that Sunshine has already hit the ground running with reconnaissance mapping and sampling campaigns.
“With the agreement signed, we can set our sights on more substantial exploration at highly prospective targets such as Plateau, Cardigan Dam, and Horse Creek. The agreement sees Sunshine Gold earn equity in the project through spend in ground, the harder we work, the more we earn.”
Sunshine reports activities have already begun at key prospects including Plateau, Cardigan Dam, and Horse Creek. Other work planned include an update from fieldwork at Lighthouse, and beginning extensional drilling at Triumph in March.
April will see a breccia gold target update at Ravenswood West, and a quarterly report released; and in June the company will be completing reverse circulation (RC) drilling across various prospects at Ravenswood West. A further update in on field activities will be provided in late March 2023.
Keys explains to this news service that Sunshine will also consider pursuing other JVs down the line, however any such potential agreements would be assessed on a value-accretive and case-by-case basis.
Sunshine Gold is an ASX-listed exploration and development company focused on its ‘high-quality’ gold and copper projects in Queensland. The company’s portfolio includes the Triumph, Hodgkinson, Investigator, and Ravenswood West projects.
The Ravenswood West project is located in the Ravenswood-Charter Towers district 100km south of Townsville, and is considered ‘highly’ prospective for gold-copper mineralisation.
Images: Sunshine Gold Ltd
