Millennium Minerals (ASX: MOY) is all set and ready to team up with Northwest Resources (ASX: NWR) after the formal joint venture and related documents have been executed relating to their 50:50 Camel Creek Joint Venture.
Under the joint venture gold produced from the Camel Creek deposits and all mining, processing and administration costs will be shared split 50:50.
Millennium will manage the joint venture, where the company has forecast that mining will commence at the deposits in early 2015.
Under the agreement, Northwest's Camel Creek Trend gold deposits will be processed by Millennium through its Golden Eagle treatment plant, which is currently under construction, and is expected to start production later in 2012.
Importantly with Camel Creek, the open pit deposits are a natural fit with Millennium's nearby Nullagine Gold Project, (where Reserves recently increased 31% to 741,000 gold ounces), due to sharing the same geology and mineralisation style as the company's existing satellite deposits located along the Camel Creek Trend.
The joint venture commenced a drilling campaign at Camel Creek in late 2011, comprising around 5,600 metres of reverse circulation drilling, targeting strike and dip extensions to the current resources defined at the three deposits - Junction (8,000 gold ounce resource), Roscoes Reward (20,000 gold ounce resources) and Little Wonder (10,000 gold ounce resource).