Evolution Mining has backed out of its partnership with junior player Intermin Resources in the Binduli gold project near Kalgoorlie, Western Australia.

Intermin (ASX:IRC) says it was notified in mid-March of Evolution’s intention to withdraw from the joint venture.

The company’s shares were down 10 per cent at 18c on Tuesday afternoon.

But Intermin isn’t cut up about losing its JV partner and it isn’t looking for a replacement.

“We’re happy to have the project back to be honest and we’re obviously putting 5000m [of drilling] into it,” boss Jon Price told Stockhead.

“We think it’s pretty prospective ground. We’re more than happy to get stuck into it so we won’t be seeking JV partners for that.

“We certainly see Evolution has probably got bigger fish to fry, but for us as an exploration company the ground is fantastic and we’re going to go and hit it pretty hard.”

Evolution had the right to earn up to 70 per cent of the Binduli project by spending $4.6 million over five years.

Intermin’s subsidiary Black Mountain Gold struck the farm-in deal in April 2015 with La Mancha Australia, which was subsequently acquired by Evolution.

IRC shares over the past three months.
IRC shares over the past three months.

Evolution completed about 8500m of drilling at Binduli and met its expenditure commitment, Mr Price said.

Intermin says the results of the December drilling are yet to be announced by Evolution, but they show some minor mineralisation was discovered, with several drill holes recording low tenor but anomalous mineralisation.

The company now plans to start a 5000m drilling program at the Coot, Crake, Darter and Honey Eater prospects in the June quarter.

The program will include extensional and validation drilling, with results expected out in the September quarter.

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