Monax Mining strikes Designated Project deal with Antofagasta
THE DRILL SERGEANT: Monax Mining (ASX: MOX) has established its Millers Creek project in South Australia as a ‘Designated Project’ (DP) with its strategic alliance partner, a wholly-owned subsidiary of major Chilean copper producer Antofagasta, via its wholly-owned subsidiary, Monax Alliance.
The Millers Creek DP comprises three Alliance tenements together with four tenements owned by ASX-listed Maximus Resources (ASX: MXR), all located within the Woomera Prohibited Area (WPA).
The Alliance announced the signing of a Memorandum of Understanding (MOU) earlier this week with Maximus for the Billa Kalina project which now forms part of the Millers Creek DP.
Combined, the seven tenements cover 3165 square kilometres and represent a fair-sized landholding within the Olympic iron-oxide copper-gold (IOCG) Province.
The Millers Creek area is located between Olympic Dam and Prominent Hill within the Olympic IOCG Province and has not been subject to extensive mineral exploration, due to its location within the WPA.
Location of Monax projects including the new Alliance Millers Creek Designated Project. Source: Company announcement
“The new Designated Project is a significant project for us and provides the Alliance with a major exploration focus within a prospective and under-explored part of the Gawler Craton,” Monax Mining managing director Gary Ferris said in the company’s announcement to the Australian Securities Exchange.
“Due to it being a heavily restricted Defence area for many years, exploration access within the WPA has been virtually non-existent.
“The recent opening of this highly-prospective area has provided the Alliance with a major focus to secure tenements for exploration.
“There is limited available tenure within the Olympic IOCG Province, so the Alliance was eager to secure the three available tenements at Millers Creek, and combine them with the Maximus project area, to have a combined suite of tenements under the DP which has not received significant exploration for IOCG deposits.
“The extension of the strategic alliance for a further year, and the new DP, show that Antofagasta regards South Australia as prospective for the discovery of large copper deposits.”
Monax said the Alliance has commenced the land access approvals process and plans to undertake detailed gravity in late 2013 or early 2014 over selected target areas.
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