THE BOURSE WHISPERER: Northwest Resources and Millennium Minerals have inked an agreement to form a formal Joint Venture Agreement relating to the companies’ 50:50 Camel Creek Joint Venture.
Northwest and Millennium are both developing gold projects in the Nullagine goldfield located in the eastern Pilbara of Western Australia.
In October 2011, Northwest and Millennium announced a non-binding heads of agreement for a 50:50 JV, under which Northwest’s Camel Creek Trend gold deposits will be mined and processed by Millennium through its Golden Eagle treatment plant, which is currently under construction.
Gold produced from the JV deposits and all mining, processing and administration costs relating to the JV will be shared by the two companies on a 50:50 basis.
Millennium will take on the role of manager of the Joint Venture, where mining is anticipated to commence in early 2015.
Northwest’s Nullagine gold and antimony project comprises the high-grade Blue Spec Shear gold-antimony deposits as well as its lower grade Camel Creek Trend gold deposits.
“Northwest is currently advancing its Blue Spec Shear deposits through feasibility studies as a standalone high-grade gold and antimony underground mining operation,” Northwest Resources said in its ASX announcement.
“The Camel Creek Trend open pit deposits do not form part of Northwest’s Blue Spec Shear development plans given their difference in mineralisation style to the Blue Spec Shear deposits, however they are a natural fit with Millennium’s project, sharing the same geology and mineralisation style as Millennium’s satellite deposits located along the Camel Creek Trend.”