After sitting dormant for a couple of years, Woodjam announced it will begin exploration at its site five kilometres south of Horsefly.
“For five years South African miner Gold Fields has had our project under option and spent close to $25 million dollars,” said Woodjam business development manager Paul Way. “But two years ago due to the drop in commodity prices, decided to halt exploration away from their mine sites.”
As a result, Way said, they stopped funding Woodjam.
“Today we have announced we are acquiring their 51 per cent earned interest for shares, so we will hold 100 per cent and control over the project.”
Gold Fields retains 20 per cent of the company plus an Net Smelter Return (NSR) on the property.
Way said the company plans to be back exploring as soon as it can.
“We are pretty happy, we’ve been working on this deal with Gold Fields for about a year and are pretty ecstatic.”
Woodjam’s site is about 40,000 hectares.
East of the southeast zone of the property there are an estimated 230 million tons of mineable material.
The company plans to do some geophysics work in the area and eventual drilling in 2016.
“We will be doing what our budget permits,” Way said.
In purchasing Gold Fields Horsefly Inc., Woodjam has acquired all permits and memorandums of understanding.