EQ Resources (ASX:EQR) has announced that its farm-in partner, Sozo Resources, will proceed to the second stage of their joint venture.

Sozo will acquire a 49% stake in the Panama Hat and Crow Mountain projects, focusing on drilling in the Telephone Line prospect and exploring a gold anomaly in Panama Hat.

The joint venture will also look into drilling IP chargeability anomalies near the Peel Fault and the Princess Mine area in the Crow Mountain Project.

EQ Resources says a recent rock chip sample at Crow Mountain returned 4.9g/t gold at Crow Mountain.