Newmont teams with High Desert partners

Newmont Gold (NGC-N) will exercise its back-in option on a joint venture between High Desert Mineral Resources (HDR-V) and Barrick Gold (ABX-N).

The subject of the joint venture is the High Desert property, 1 mile northeast of Newmont’s Carlin open pit.

High Desert Mineral Resources continues to operate the project, in which it has a 44% interest. Barrick retains 31%, while Newmont now holds the remainder.

Newmont will earn into the venture by making a payment equivalent to 25% of the cost of exploration to date, and by financing 25% of future exploration.

No figures were released.

Soon, High Desert will resume drilling on the property.

Newmont and Barrick share a 60-40 joint venture on the adjacent Leeville Corridor project. Barrick purchased its 40% interest in 1995, when it acquired High Desert Mineral Resources of Nevada. As of last year, the resource stood at 7.1 million tons grading 0.348 oz. gold per ton (nearly 2.5 million oz. gold). This does not include mineralization discovered at the Four Corners and Hardie Footwall targets.