Australian mining company Polymetals Mining is planning to raise its stake in the Drew Hill gold project to 50%.
The company reached an agreement with its joint venture partner Exco Resources regarding both mining and exploration at the project. Polymetals Mining previously owned 25% of the Drew Hill Project.
The Drew Hill project is situated in situated in South Australia. The White Dam Mine, the Vertigo project and the Drew Hill tenements are all part of the project. Polymetals Mining is to spend $1.3 million on the exploration of the Drew Hill project by June 30, 2012.
The company is also looking forward to increasing its interest in the infrastructure such as plant and camp facilities from 25% to 50 %. Presently the company gets 25% from the Hannaford pit while Exco Resources gets 75% of the profits from the operations.
Once the Vertigo project and any other deposit on the project is developed it will be shared 50- 50 between Polymetals Mining and Exco Resources. The company feels that its stronger position in the project will help it to leverage the production presence it has established in the Curnamona mineral province.