De Grey adds more VMS prospective ground

De Grey Mining has entered into an option agreement with a private syndicate...

  De Grey Mining has entered into an option agreement with a private syndicate to explore for base and precious metals at Friendly Creek, which is located adjacent to the company’s recently announced Joint Venture with Chalice Gold Mines at Yandeyarra, immediately south of the Turner River Project.The option agreement covers an eight square kilometre area that contains the historic Pilbara Well alluvial goldfield, together with three known copper occurrences. De Grey Managing Director, Darren Townsend said the deal expanded De Grey’s total new strike length of rocks prospective for VMS mineralisation at Yandeyarra to over 55km, adding to the number of exploration targets available to the company.The terms of the three-year option include an upfront payment of $20,000. De Grey has the right to purchase the hard rock rights (greater than 10m depth) to all minerals, with no residual interests, for $175,000 cash. If De Grey elects to purchase the hard rock rights, the private syndicate will retain the rights to all alluvial minerals (less than 10m depth). At any stage during the option period and subsequent to the exercise of the hard rock rights, De Grey may elect to purchase the residual alluvial rights for $300,000. “This option agreement perfectly complements the additional land holding of our joint venture at Yandeyarra, announced to the market on 16 November, and further expands De Grey’s prospects and potential,” Mr Townsend said