Doray signs farm-in with Iluka
Doray Minerals has signed a farm-in agreement with Iluka Resources to explore the Central and Western Gawler Craton in South Australia for precious metals.
Under the terms of the deal, Doray will have the right to earn up to 80 per cent of any gold resources discovered within the project area by spending $7 million on exploration within six years with a minimum $1 million commitment in year one to earn a 20 per cent interest.
Iluka will reserve its rights over any other commodities discovered within the 21,000sqkm project area.
Doray said it would explore the “highly prospective” and “virtually unexplored” project area for large-scale, granite and/or shear-hosted gold mineralisation.
Managing director Allan Kelly said the exploration farm-in with Iluka represented a strategic first-mover opportunity for the company, given the size of the landholding and the highly prospective and underexplored geology it covered.
Shares in Doray were off 1.5 cents, or 5 per cent, at the close to 28.5 cents while Iluka shares were up three cents to $6.93.
