Perth, Dec 18, 2007 AEST (ABN Newswire) - De Grey Mining Limited (ASX: DEG) has entered into an option agreement with a private syndicate to explore for Base and Precious metals at Friendly Creek, adjacent to the recently announced Joint Venture with Chalice Gold Mines Ltd at Yandeyarra immediately south of De Grey's Turner River Project.
The option agreement covers an 8km2 area that contains the historic Pilbara Well alluvial goldfield together with three known copper occurrences.
Managing Director Darren Townsend said "This deal expands De Grey's total new strike length of rocks prospective for VMS mineralisation at Yandeyarra to over 55km, adding to the number of exciting exploration targets available to the Company."
The terms of the three year option include an upfront payment of $20,000. De Grey has the right to purchase the hard rock rights (greater than 10m depth) to all minerals with no residual interests for $175,000 cash. If De Grey elects to purchase the hard rock rights the private syndicate will retain the rights to all alluvial minerals (less than 10m depth). At any stage during the option period and subsequent to the exercise of the hard rock rights, De Grey may elect to purchase the residual alluvial rights for $300,000.
Darren Townsend said "This option agreement perfectly complements the additional land holding of our joint venture at Yandeyarra announced to the market on the 16th November and further expands De Grey's prospects and potential."
Contact
Darren Townsend
De Grey Mining Limited
Ph: +61 8 9285 7500
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