THE BOURSE WHISPERER: Alt Resources (ASX: ARS) has entered an agreement with Ironbark Zinc (ASX: IBG) to farm in to the Fiery Creek gold project in New South Wales.
In its announcement to the ASX, Alt Resources described the project as, “a highly prospective gold exploration opportunity in a well-endowed historic goldfield”.
Under the agreement, Alt can earn up to an 80 per cent interest in the Fiery Creek project in stages by funding drilling activities and making a payment in cash or shares at its election.
The Fiery Creek project contains the historic Fiery Creek and Macanally gold and copper workings, which extend over a strike length of more than 8.5km.
The project is located within EL 6925 which contains both the Fiery Creek project and the Peakview base metal prospect.
Alt and Ironbark have agreed to divide the tenement to reflect their interests in the respective projects, with Ironbark to continue focusing on the base metal potential at Peakview.
The broad terms of the agreement include:
Ironbark will grant a 51 per cent interest in the Fiery Creek project to Alt subject to Alt completing 1,500m of RC or diamond drilling within 24 months;
After earning this initial farm-in interest, the parties will cooperate to effect the separation of the tenement into two distinct exploration licences to allow Alt to focus on the Fiery Creek prospect and Ironbark to focus on the Peakview prospect;
Ironbark will grant a further 29 per cent interest in the Fiery Creek project to Alt, increasing its interest to 80 per cent, subject to Alt completing 2,500m of drilling and paying the sum of $150,000 in cash or fully-paid Alt shares at its election; and
In the event that Alt acquires an 80 per cent interest, it will continue to sole fund all expenditure commitments at the Fiery Creek project until the parties make a decision to mine a deposit within the area.
In the event of a decision to mine, the joint venture will proceed on a contributing basis.