Native Mineral Resources is staking a claim on the ‘mine-ready’ Far Fanning and Black Jack gold projects in a joint venture exclusivity agreement with Ashby Mining.

The deal allows NMR to undertake detailed investigations into the north Queensland projects and provides first right to negotiate a joint venture or acquisition for up to 12 months following the exclusivity period.

If it proceeds with a joint venture, NMR is to invest at least $2 million into exploration and mining works on the tenements in the first two years.

This would see it earn a 60 per cent interest in the projects, increasing to 85 per cent upon delivery of 70,000 tonnes of gold ore grading 0.6g/t or better.

Related: NMR releases first assays from Maneater drill program

“NMR is extremely excited to be able to take advantage of this unique opportunity to further investigate its participation in two near-mine projects with no upfront cash payment,” managing director Blake Cannavo said.

“Far Fanning and Black Jack are both advanced projects and would give NMR a substantial head start on becoming a miner and gold producer.

“A joint venture with Ashby in relation to these projects would move NMR from being a small junior explorer with a long lead time to production to having the ability to be a gold producer in less than two years.

“We are looking forward to working closely with Ashby over the coming weeks to finalise our due diligence work and agree to binding legal documentation.”

The establishment of the joint venture is conditional upon NMR being satisfied with its due diligence on the projects, renewal of certain tenements and completion of Ashby’s initial public offer.

Related: Ashby set to breathe new life into NQ gold projects

Ashby Mining launched an IPO earlier this year in a drive to restart the Black Jack processing plant and start producing gold from a raft of Charters Towers district tenements, including Far Fanning and the Hadleigh Castle mining lease.

Its listing on the ASX is currently planned for this month.

The Far Fanning and Black Jack projects contain historical mining operations on current mining leases.

Far Fanning has a 2012 JORC-compliant mineral resource estimate of 2.3Mt at 1.84g/t gold, and Black Jack contains three small shallow oxide pits and extensive historical underground workings.

As part of the deal, Ashby will give NMR priority access to treat any ore mined at both projects on special terms through its CIL processing plant, which is located at the Black Jack project.