Venus Metals (ASX: VMC) is relinquishing management of three gold joint ventures at the historic Youanmi project in Western Australia after Rox Resources (ASX: RXL) has met its earn-in requirements on two of those projects.
The joint ventures affected are the Youanmi joint venture (gold rights only) where ownership is now 45% for each company (there is also a minority shareholder), VMC joint venture (gold rights only) with each company holding 50% and the Currans joint venture, which will be 45-45.
Rox was required to spend $200,000 on the Youanmi joint venture and $800,000 on the VMC joint venture.
The OYG joint venture is already managed by Rox, with Venus holding a 30% interest.
The stakes in OYG and Currans were acquired without earn-in requirements.
Venus also remains entitled to a 0.7% net smelter royalty on all gold and other metals mined at OYG.
Rox owns other Youanmi tenements in its own right.
All spending on JVs will be decided jointly
All regional exploration activities and budgets for all the joint ventures will be assessed by a committee representing both companies.
Venus said it will now be focusing on its other gold projects along the platinum group elements (PGE) and base metals project.
The Youanmi gold project is located 480km northeast of Perth, WA and is close to the Great Northern Highway.
The project area covers about 80km of strike.
Rox said it will now undertake an extensive review of historical data with the aim of identifying target regions.
Venus ‘well-funded’ for own projects
Venus metals said it is well-funded to complete several of its own exploration projects.
On its 100%-owned gold tenements, there are ongoing geochemical surveys and geophysical modelling.
The company is now reviewing recent ground geophysical studies at its Vidure, Vidure South and Merlot PGE-base metals projects, while reverse circulation pre-collars have been completed ahead of drilling at the Inky copper-nickel prospect as well as at Manindi North.
Geological assessment and further infill drilling are planned at the Pincher Well zinc prospect, and there will be follow-up drilling at the Stone Tank and Estonia nickel-cobalt projects ahead of an inferred resource estimate.
Finally, with Venus’ vanadium oxide resource, hydro-metallurgical studies are ongoing at Murdoch University and an application for a mining lease is in progress.
Youanmi has a rich gold history
The Youanmi mining centre has produced an estimated 667,000 ounces of gold (at an average 5.47g/t) since its discovery in 1901. It has been mined over three periods: 1908-21, 1937-42 and 1987-97.
Most of that gold was produced from the Youanmi mine itself, with 96,000oz produced from various satellite prospects.
In early 1908, just before the first mining operation began, a correspondent filed a report to the Kalgoorlie Western Argus newspaper predicting the Youanmi field held promise.
“About a month’s acquaintance with the central portion of the Youanmi field … has convinced me it is the nucleus of a very great auriferous tract, which in the near future will be one of the great gold-producing areas of West Australia,” he wrote.