Koonenberry Gold (ASX:KNB) said that Newmont Exploration, an indirect wholly-owned subsidiary of Newmont (ASX:NEM), started a generative air core drilling program at selected targets across the Fairholme copper-gold joint venture project in New South Wales, according to a Monday Australian bourse filing.

The drilling program is fully funded by Newmont, with exploration expenditure of around AU$1.1 million spent by the end of January. Drilling will test several geophysical targets of up to 10 holes, the filing said.

Koonenberry Gold holds a 51% interest in the project, while Newmont is in the earn-in phase.

Newmont has the right to earn up to an 80% interest by funding AU$5 million of expenditure costs and carry Koonenberry up to AU$15 million of expenditures at its discretion.

Koonenberry Gold's shares were up 3% in recent Monday trade, while Newmont's shares gained about 1%.