Doray and Iluka strike Farm-in Agreement

THE BOURSE WHISPERER: Doray Minerals (ASX: DRM) has entered a strategic Farm-in Agreement with Iluka Resources (ASX: ILU).

The agreement allows Doray to explore Iluka’s Central and Western Gawler
Craton tenement portfolio in South Australia, which Doray says has been
virtually unexplored for precious metals.

Doray will have the right to earn up to 80 per cent of any ‘Gold
Resources’ (defined as a Resource where the economic value of the Gold
in the Resource is greater than 80 per cent of the total economic value
of the Resource) discovered within the project area with Iluka retaining
rights to discoveries of other commodities, unless it elects not to do

The Farm-in Project area comprises approximately 21,000
square kilometres of exploration licences and applications overlying the
Central and Western Gawler Craton.


Location of Iluka Farm-In project area and existing Doray tenements in South Australia. Source: Company announcement


According to Doray the area encompasses one of the last underexplored
Archaean/Proterozoic boundaries in Australia, with similarities to the
Yilgarn Craton/Albany-Fraser Province juxtaposition on the western side
of the Eucla Basin in Western Australia.

Doray will explore the Farm-in project area for large-scale, granite and/or shear hosted gold mineralisation.

“The exploration Farm-in with Iluka represents a strategic first-mover
opportunity for Doray, given the size of the landholding and the highly
prospective and underexplored geology it covers,” Doray Minerals
managing director Allan Kelly said in the company’s announcement to the
Australian Securities Exchange.

“We are very pleased that Iluka has recognised the potential that a collaboration with Doray represents for them.

“Our enthusiastic and proven exploration approach will see the project
area explored efficiently and effectively and we now look forward to
commencing this exciting opportunity.”