The company earned the interest after meeting the Stage 1 expenditure commitment of $3.0 million within the two-year period.
Andromeda has elected to immediately advance to Stage 2 in order to earn a further 24% (75% total) by spending $3.0 million over a three year period.
Notably, Andromeda is able to progress to an immediate 75% equity interest should a decision to mine, supported by a bankable feasibility study, be agreed by the joint venture partners.
Careys Well deposit the initial focus
Andromeda is preparing a more detailed pre-feasibility study (PFS) for the Careys Well deposit within the Poochera Project in South Australia.
This PFS will take into account the optimised scoping study released in September 2019, which is based on the assumption of an initial direct shipping ore (DSO) operation during the first two years.
During the first two years, the revenues generated from DSO sales would fund the construction of a dry-processing plant.
Updating scoping study due this month, updated PFS next quarter
Notably, the PFS will also consider separate studies underway considering a wet-processing option, should Read More – Source