THE DRILL SERGEANT: Antipa Minerals (ASX: AZY) is advancing its exploration activities at the company’s Citadel project in the Paterson Province of Western Australia.
Antipa Minerals’ Citadel project sits 80 kilometes north of Newcrest’s Telfer gold‐copper‐silver mine and within five kilometres of Rio Tinto’s recent Winu copper‐gold deposit.
Exploration at Citadel is being fully funded by Rio Tinto Exploration Pty Limited pursuant to a Farm‐in and Joint Venture Agreement.
A 2019 Gradient Array Induced Polarisation survey undertaken at the Citadel project JV with Rio Tinto identified six new greenfield gold‐ copper targets that the JV proposes to be drill tested in 2020.
These new targets are all located within 30 to 40km of Rio Tinto’s Winu copper‐gold‐silver deposit within a similar geological setting.
Citadel currently hosts a global Mineral Resource of 63.8 million tonnes at 0.8 grams per tonne gold and 0.2 per cent copper for 1.6 million ounces of gold and 127,000 tonnes copper.
Results from an Airborne gravity survey over the Citadel project are expected to hit the Antipa desktop in March.
As for now, Rio Tinto is moving ahead with the next stage of the Citadel project earn‐in whereby it can increase its interest to 65 per cent by sole funding $14 million in exploration expenditure.
nder the terms of the Farm-in Agreement, Rio Tinto may spend an additional $14 million within five years to increase its interest in the Citadel JV from 51 per cent to 65 per cent.
Subject to Rio Tinto earning the 65 per cent interest in the JV and Antipa then electing not to contribute to expenditure to maintain its 35 per cent interest, Rio Tinto has the ability to increase its interest to 75 per cent by sole funding a further $35 million within a further three years with the total of Rio Tinto’s sole funding potentially being $60 million.