Koonenberry Gold (ASX:KNB) said that Newmont Exploration, an indirect wholly-owned subsidiary of Newmont (ASX:NEM), started a generative air core drilling program at selected targets across the Fairholme copper-gold joint venture project in New South Wales, according to a Monday Australian bourse filing.
The drilling program is fully funded by Newmont, with exploration expenditure of around AU$1.1 million spent by the end of January. Drilling will test several geophysical targets of up to 10 holes, the filing said.
Koonenberry Gold holds a 51% interest in the project, while Newmont is in the earn-in phase.
Newmont has the right to earn up to an 80% interest by funding AU$5 million of expenditure costs and carry Koonenberry up to AU$15 million of expenditures at its discretion.
Koonenberry Gold's shares were up 3% in recent Monday trade, while Newmont's shares gained about 1%.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.