De Grey Mining has taken the next step in its journey to earn a 50 per cent stake in Novo Resources’ Egina gold project in the Pilbara region of Western Australia.
Egina lies adjacent to De Grey’s Hemi gold project and includes a 1034km tenement package.
De Grey entered into a binding heads of agreement with Novo in June 2023 for the right to earn 50 per cent of the project if it spent an initial $7 million within 18 months, and an additional $18 million within four years.
Through the earn-in, De Grey’s exposure to the region through exploration area will increase by 70 per cent when combined with Hemi.
De Grey has announced it has now officially reached its $7 million minimum expenditure goal.
“The Egina project is an important part of De Grey’s strategy to grow a large regional scale resource base around the planned Hemi processing plant,” De Grey general manager Phil Tornatora said.
Egina contains major structures and geological units which extend from Hemi and is prospective for both large intrusion-hosted deposits like Hemi and orogenic gold deposits.
“Large prospective areas of the Egina project have not been explored so we believe the area still has exciting potential,” Tornatora said.
“Our intention is to continue to progress exploration on the Egina tenements towards forming a 50:50 joint venture subject to ongoing assessment of exploration results on the project.”
De Grey will now have until June 30 2027 to spend an additional $18 million if it is to acquire the full 50 per cent of Egina.
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