Desert Mines and Metals ink option over gold-silver mines in South Korea
Desert Mines and Metals (ASX: DSN) has signed a Terms Sheet between Korean Resources, a wholly
owned subsidiary of Desert, with the vendors of Mining Right Jinan 89,
which contains the historic Dongjin and Indae gold and silver mines.
Gold
up to 17 grams per tonne, and silver up to 232 grams per tonne have
been recorded at the properties, and mining records indicate operations
have existed over several decades.
There is potential for mineralisation to extend below current workings, and the acquisition complements Desert's Korean Daehwa Molybdenum project.
Desert
will pay $10,000 upon signature, and $5,000 one month after signature,
and the vendors will register Desert's subsidiary, Korean Resources, as
joint title holder.
Korean will fund 500 metres of drilling at
the project within 1 year subject to satisfactory completion of a
geophysical survey, formal receipt of approval to change the prospecting
method from geophysics to drilling, and statutory forest clearances.
For its expenditure to this point, Korean will earn 60% equity in the project.
At
the completion of the drill program, both parties have agreed to fund
any further exploration work equally or if either party elects not to
contribute, that party will dilute at a rate of 1% for every $10,000 of
exploration expenditure.
The agreement provides Desert with the
opportunity to further expand its footprint in Korea with minimal
upfront expenditure, by gaining access to productive, high grade gold
and silver deposits.
