MMS mobilises fleet to Leonora South gold project as part of ‘Drill-for-Equity’ agreement
Mineral Mining Services (MMS) has announced that its specialised drill fleet and supporting personnel have officially mobilised to site and commenced a RC drilling program at the Leonora South gold project near Kookynie, Western Australia.
The commencement of field works follows the formalisation of a strategic partnership and “Drill-for-Equity” mechanism between MMS and GoldArc Resources Ltd. This landmark agreement moves beyond a traditional mining contract to establish a development partnership, providing a fully funded, low-capital pathway to production for the project’s existing gold resources, MMS says.
MMS has deployed a comprehensive drill fleet to manage the full scope of drilling and geological services. Over the coming two months, the team aims to complete over 6,000 m of RC drilling. The program will systematically target five high-priority areas: Orion, Sapphire, Eclipse, Justice and Euroa.
The data gathered will be used to refine JORC-compliant resources and inform the transition into the proposed Mine Development Joint Venture. Under the terms of the JV, MMS will be responsible for funding 100% of the development costs required to bring the mine into operation. Following the recovery of its development capital from initial cashflows, all project profits will be shared on a 50:50 basis with GoldArc.
MMS Chief Development Officer, Emma Edwards, said: “Mobilising to Kookynie is a major step in our partnership with GoldArc. By integrating our capital and operational expertise, we are creating a streamlined path to commercialisation and look forward to helping bring Leonora South into production.”
GoldArc Managing Director, Paul Stephen, added: “Securing a high-quality contractor like MMS is an important part of our strategy to unlock value at our Leonora South gold project. The ability to settle a portion of our drilling costs in equity demonstrates MMS’s confidence in our assets and allows GoldArc to direct more of its cash towards further exploration and project development. We look forward to a productive field season.”
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