Evolution Mining has entered into exploration earn-in agreements at Musgrave Minerals’ Cue project in Western Australia and Basin Gold’s Crush Creek project in Queensland.
Evolution will first acquire a 4.59% interest in Musgrave for A$1.5 million in cash. After that, the company may earn a 75% interest in the Cue project area by spending A$18 million over a five-year period, with a minimum commitment of A$4 million over two years. Evolution will determine the exploration program and budget during the earn-in period. Musgrave will operate the project during the minimum spend period.
On completion of the earn-in, each party will fund their pro-rata share of
expenditure. Subject to a decision to mine, Musgrave may elect for Evolution to fund Musgrave’s share of development costs, repayable with interest from commercial production.
In Queensland, the Crush Creek project 30 kilometers (km) southeast of Evolution’s Mount Carlton mine hosts low-sulphidation epithermal gold mineralization that Evolution believes has potential to provide mine life extensions at Mount Carlton.
Evolution will make an initial cash payment to Basin Gold of A$2 million on grant of the Mineral Development License and then may earn a 70% interest by sole funding A$7 million of exploration expenditure over a two-year period. Once the earn-in is met, either party has the option to elect for Basin Gold’s 30% interest to be sold to Evolution for a consideration of A$4.5 million and a 10% net profit interest on any production above 100,000 oz of gold.
Evolution Vice President of Discovery and Business Development Glen Masterman commented, “We are excited to be adding two quality projects to our portfolio which have the ability to generate new drill results that extend previously identified mineralized zones. These earn-in agreements are consistent with our strategy of focusing on orogenic and epithermal deposit styles that can create value through future discovery.”