Gold producer Newcrest Mining (NCM) announced today that it has signed a definitive joint venture agreement (JVA) with two Japanese mining groups, Nittetsu Mining Co and Mitsubishi Materials Corporation, to explore for copper-gold in the Namosi region of Fiji.
The JVA formalises and supersedes a memorandum of understanding that was signed in July
Newcrest can earn a 65% stake in the joint venture by spending $21.5 million on exploration over a 5 ½ year period, during which time it would be the manager of the exploration activities in cooperation with Nittetsu and Mitsubishi.
The Nomosi Tenement is located 30 km northwest of Suva, the capital city of Fiji.
"Newcrest considers that the area is prospective for large copper-gold porphyry (igneous rock) mineralised systems to which it will apply its exploration expertise and deep drilling," the gold producer said in a statement.
Newcrest said an initial drilling program would test for mineralisation at depth at the Waisoi prospects, where historic exploration has identified an open pit copper-gold resource.
Core drilling is planned to commence during this month.
Shares in Newcrest fell 60 cents to $33.16.
