Red 5's joint venture agreement with Ardea Resources gives Red 5 up to 80% ownership of the Mt Zephyr project and up to 80% of the Darlot East gold mine, both of which are very close to Red 5's Darlot gold mine.
The Mt Zephyr project consists of five approved exploration rights, including a number of gold and base metal exploration targets, including Gale Prospect controlled by granite;
The Darlot East project consists of two approved exploration rights, adjacent to the existing Darlot project rights in Red 5, with previously undiscovered greenstone belts that have hardly been explored;
Red 5 needs to invest A $1.5 million in exploration over the next two years to acquire the initial 60% ownership, and Red 5 has the right to invest an additional A $800,000 in exploration over the first three years of the joint venture to increase the ownership of the two projects to 80%.
(The brown color is the distribution of Red 5 mining rights, and the blue color is the location of participating in this joint venture mining rights)
Mark Williams, managing director of Red 5, said:
"The growth vision for Red 5 is to establish two separate production centers in KOTH and Darlot, following the recent release of a feasibility study for a substantial mining and dressing development in KOTH.
"The joint venture agreement with Ardea Resources provides an exciting opportunity to discover gold Resources within economic transport distance of the Darlot refinery, which currently has a production capacity of 1 million tonnes per annum.
"Ardea's primary exploration has identified a range of highly promising targets, including the Gale exploration area of higher priority, which is similar to our earlier exploration results for the 4.1 million oz KOTH deposit.
"Red 5 now has a total of 1,919 sq km of mines (including 423 sq km of mining rights being applied), which puts us in a pivotal position in this world-class gold region and enables us to develop rapidly through exploration.
"We look forward to the commencement of drilling and exploration works at the Mt Zephyr and East Darlot projects."
