Northern Star signs deal with Ord River, Dampier

A joint venture between Ord River Resources and Dampier Gold has entered into a binding ore treatment agreement with Northern Star Resources for use of its Plutonic processing facility for an undisclosed sum.

Ord River said the agreement would allow the joint venture to process ore from its K2 underground development project at Northern Star’s Plutonic facility, which is located only 36 kilometres from the site.

While no numbers have been disclosed on the deal, Ord River said Northern Star would be paid for the processing services through the provision of gold at the point of refining.

“Ord is rapidly progressing towards the development of the K2 underground project,” Ord River managing director Frank Zhu said.

“The coming months for Ord (River) will involve a significant level of activity as we expeditiously work towards commencing production.”

The K2 project forms part of the joint venture’s Plutonic Dome gold project, in which Ord River has recently earned a 30 per cent interest in by funding $2 million for the project.

Dampier Gold holds the remaining 70 per cent interest.

However, Ord River has an option to acquire a further 15 per cent interest if it raises another $1 million over the next five months.

Northern Star’s share price rose 2 per cent to $1.25 per share at 11am.