Gold Fields Commences Earn-in at West Tanami Project with Geophysical Survey
KLI (KLI) Share Update November 2024 Tuesday 26th
Gold Fields Begins Earn-in with Geophysical Survey at West Tanami Project
Killi Resources Limited has announced that its joint venture partner, Gold Fields Limited, has commenced an airborne gravity survey at the West Tanami Gold Project in Western Australia, marking the first step in their quest to discover a new large-scale gold system.
Instant Summary:
- Gold Fields starts a 1,600km2 airborne gravity survey at West Tanami.
- Killi and Gold Fields entered a Joint Venture Agreement in May 2024.
- Gold Fields can earn up to 85% interest by investing $13 million.
- The survey aims to explore a new large-scale gold system.
Project Overview
The West Tanami Project, located in the Kimberley region of Western Australia, covers 1,600 square kilometers of the Tanami Geological Belt. This region is known for its gold mineralizing structures and is situated 120 kilometers along the strike from the renowned Callie Gold Mine, which boasts a 14-million-ounce gold reserve.
The Tanami Geological Province is divided by the Western Australian and Northern Territory border, with a significant portion of gold resources located in the Northern Territory. The joint venture between Killi Resources and Gold Fields aims to systematically explore the Western Australian side, which has been relatively underexplored.
Joint Venture Details
In May 2024, Killi Resources entered into an Option and Joint Venture Agreement with G Ex Australia Pty Ltd, a subsidiary of Gold Fields. Under this agreement, Gold Fields can earn up to an 85% stake in the West Tanami Project by investing $13 million in exploration activities over two stages.
The commencement of the airborne gravity survey is the first step in this exploration effort. The survey will help complete the foundational datasets necessary for identifying potential large-scale gold systems within the tenement package.
Strategic Importance
The strategic partnership with Gold Fields ensures that the West Tanami Project will be explored using advanced geophysical techniques, leveraging current market gold prices. This collaboration is expected to unlock the region's potential and contribute to the discovery of new gold resources.
Gold Fields' involvement brings significant expertise and resources to the project, enhancing the likelihood of a successful exploration outcome.
The initiation of the geophysical survey by Gold Fields is a positive development for Killi Resources, as it signifies progress in their exploration efforts. The potential discovery of a large-scale gold system could significantly enhance the project's value and attract further investment interest.
For Gold Fields, this project represents an opportunity to expand their gold portfolio in a region with considerable untapped potential. The successful identification of new gold deposits could bolster their position in the global gold market.
Investor Reaction:
Analysts are likely to view the commencement of the survey as a promising step towards realizing the potential of the West Tanami Project. The involvement of a major player like Gold Fields adds credibility and increases the likelihood of a successful exploration outcome.
Conclusion:
Investors should keep a close watch on the progress of the West Tanami Project as the survey results could have significant implications for both Killi Resources and Gold Fields. The potential discovery of a large-scale gold system could lead to substantial returns on investment.