The group has signed a sale agreement to acquire Sumitomo Metal Mining Oceania Pty Ltd’s 50% interest in the South Yamarna project for $7 million in cash.
The project is located in Western Australia and is in close proximity to Gold Road’s Gruyere joint venture.
There are also certain rights of first refusal and first negotiation involved.
Gold Road reaps benefits of strong relationships
The acquisition will consolidate Gold Road’s ownership of the majority of the Yamarna Belt, which currently hosts 6.8 million ounces of gold in resource.
In addition to Gold Road becoming owner of the 100% of the South Yamarna project, it also owns the North Yamarna project and 50% of the Gruyere joint-venture.
The South Yamarna joint-venture was forged between Gold Road and Sumitomo in 2013.
Since then the group has discovered the 6.2 million ounce Gruyere gold deposit and will be producing from 2019.
Gold Road to invest $23 million on exploration
Should the acquisition be formalised, it will benefit from a total budget of $23 million being applied to both North Yamarna and South Yamarna.
Gold Road is targeting multi-million ounce gold deposits in the South Yamarna project area which contains some of the group’s highest ranked drill targets.