With mineral properties once worth millions now going for a song, Australian companies have been making deals with the few Canadian juniors still holding prospective ground in Indonesia.
The latest alliance, a US$7-million joint-venture agreement between
Scorpion Chairman Michael Farrugia says the company was pleased to have a partner with the financial strength and solid reputation of Aurora. “We are optimistic as to the prospects of making a commercial discovery.”
Aurora is no stranger to the Southeast Asian nation, having worked there for more than a decade. The Aussie firm owns 100% of the Mt. Muro gold-silver mine in central Kalimantan, which was brought into production in 1994. Last year, the mine turned out more than 255,000 oz. gold-equivalent.
The Aussie gold company can earn 75% of Scorpion’s 85% interest in the local company that holds the Sampanahan contract of work by spending US$6 million on exploration and paying Scorpion a further US$1 million. For Scorpion, this equates to a 63.75% interest.
Aurora plans to spend at least US$1.5 million over the next 18 months, of which US$1 million is budgeted for this year. Aurora will manage the project and assume responsibility for ongoing costs.
This year’s work program, which is designed to test areas of structurally controlled gold mineralization, will include soil sampling, trenching of anomalies to outline drill targets and drilling to identify zones of mineralization.
Scorpion, meanwhile, intends to diversify and pursue other opportunities using the $9 million in its treasury.
US$1.5 million over the next 18 months, of which US$1 million is budgeted for this year. Aurora will manage the project and assume responsibility for ongoing costs.
This year’s work program, which is designed to test areas of structurally controlled gold mineralization, will include soil sampling, trenching of anomalies to outline drill targets and drilling to identify zones of mineralization.
Scorpion, meanwhile, intends to diversify and pursue other opportunities using the $9 million in its treasury.
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