JAPANESE conglomerate Sumitomo Metal Mining Oceania has thrown its considerable weight behind a local WA miner, in what coincidentally is being claimed as the first major Japanese investment in a gold project within the state.
SMMO managing director Hitoshi Ito travelled to Perth with a large Japanese delegation to mark his firm taking a 30% stake in Gold Road Resources’ South Yamarna tenements with a ceremony on the steps of Parliament House.
Addressing the media prior to adjourning inside for the official signing ceremony, Hitoshi made it clear that although the investment in a local gold play was significant, the decision was more a result of his confidence in Gold Road and its management than it was a move based on the performance of the commodity.
Receiving the Japanese delegation at the event were Member for Kalgoorlie Wendy Duncan as well as Gold Road executive chairman Ian Murray and executive director Justin Osborne.
Duncan was obviously hopeful that a regional exploration program on the South Yamarna joint venture ground would deliver future economic benefits to her electorate, with the project situated 150km east of Laverton in WA’s North Eastern Goldfields.
Member for Kalgoorlie Wendy Duncan.
“Its great news to have a company like Sumitomo, one of the largest non-ferrous metals companies in the world here in WA,” she said.
“It’s the first time we’ve had a Japanese company invest into the gold mining industry, but of course it is very important for WA to have that relationship with Japan across the whole field.”
The earn-in deal covers 2,900 square kilometres of the southern tenements of the Yamarna land holding, with Gold Road acting as manager of the JV.
Exploration activities commenced on the ground back in May 2013 and SMMO has spent $5 million on exploration to earn its 30% stake. It will need to lift this spend to $8 million to control 50% of the project.
Murray said this significant milestone demonstrated growing ties between Australian and Japanese businesses.
“We continue to honour our partnership with Sumitomo and respect the outstanding reputation and investment they bring to Western Australia’s gold industry,” he said.
“When a number of other companies were pulling out of exploration and pulling out of gold, Sumitomo were bold enough to back the Yamarna Belt and to back Gold Road Resources.
“The recent discovery of high-grade gold mineralisation within the South Yamarna joint venture at Riviera-Smokebush highlights what can be achieved through effective partnerships.”
