Sumotomo’s share in South Yamarna, 150km east of Laverton in WA, comes as a result of $5 million exploration spending on the project under a joint venture agreement between the pair two years ago.

The milestone was recognised in a ceremony on the steps at WA’s Parliament House, which was attended by more than 30 guests, including visiting international dignitaries from Sumitomo and state member for Kalgoorlie, Wendy Duncan.

Speaking on the steps of Parliament House alongside Sumitomo managing director Hitoshi Ito, Gold Road executive chairman Ian Murray said the fruition of the joint venture was a significant milestone for both companies.

“We reached the agreement with Sumitomo back in 2013, which was the dark ages of exploration in gold in Western Australia,” 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.”

Duncan said the involvement of Sumitomo in the state’s gold industry was an important development.

“Its great news to have a company like Sumitomo Mining and Metals, one of the largest non-ferrous metals companies in the world here in Western Australia,” 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 Western Australia to have that relationship with Japan across the whole field.”

Yamarna is on the same geographic belt as Gold Road’s 100% owned Gruyere deposit, which contains a total mineral resource of 137.8 million tonnes gold for 5.5 million ounces according to a mineral resource update also released today.

Under the JV agreement, Sumitomo can earn up to a 50% stake in the JV by spending $8 million.

Shares in Gold Road were up 3.4% to 46c.