Austral Resources Enters Exploration Earn-in Agreements with Glencore
THE BOURSE WHISPERER: Austral Resources (ASX: AR1) has struck reciprocal non-binding exploration earn-in agreements with MIM, a subsidiary of Glencore.
Austral Resources explained the reciprocal nature of the Earn-in Agreements will allow for:
(1) MIM to explore 330 square kilometres of Austral EPMs (within JV Area) surrounding MIM’s Lady Loretta zinc, lead, silver Mine and Austral’s Lady Annie copper Mine, and;
(2) Austral to explore for copper oxide over MIM’s 116sqkm neighbouring Russell Fault tenement (EPM26435).
Under the terms of the agreements, MIM will have the rights to earn-in up to a 65 per cent interest of Austral’s JV EPM’s by spending $6.3 million over four years.
Austral retains the right to explore for and commercially exploit oxide copper ore within the Exploration Area.
Additionally, Austral is entitled to earn-in up to 65 per cent interest within MIM’s Russell Fault EPM by spending $2 million over four years, effectively increasing the company’s copper exploration area by 116sqkm.
TO READ THE FULL ANNOUNCEMENT: CLICK HERE
“We are excited to collaborate with Glencore on this exploration JV in Queensland’s Northwest Minerals Province,” Austral Resources CEO Steve Tambanis said in the company’s ASX announcement.
“Both parties hold a significant tenure position within the region, and it makes absolute sense to combine the tenure for an intensive exploration program.
“Glencore are our offtake partners for 40,000 tonnes of our Anthill copper cathode and we look forward to working together from an exploration perspective.
“This is a win-win transaction for both Austral and Glencore with the potential to discover new orebodies that can extend operations of both companies in the region.
“Glencore is focussed on discovering new base/precious metal orebodies in this metal-rich area and Austral believes there is excellent potential to define additional oxide copper resources to be processed at its nearby Mt Kelly SXEW plant.
“The prospectivity of the area has been significantly enhanced by two new geophysical datasets (Heli-VTEM and a separate fixed wing Falcon Gravity survey) flown by Glencore in late 2021 and processed earlier this year.
“This new data has generated a number of priority targets for the JV and drilling is expected to commence within months.
“Of note, Austral has retained its rights to explore for oxide copper mineralisation on its own tenure and has negotiated the right to explore MIM’s tenure for oxide copper mineralisation.
“We believe that the increased drilling activity in this area will yield more shallow copper oxide mineralisation.
Of Austral’s 2,100 square kilometres of EPM tenure, this Earn-in agreement applies to a 330 square kilometres portion immediately about the Lady Loretta Mine.
“Austral retains 1,800 square kilometres of EPMs for other exploration initiatives.
“Austral recently commenced processing ore from its Anthill Copper Mine – building to rate of 10,000 tonnes per annum of copper cathode from mid-2022 for a four-year period.
“This will now allow the company to increase the pace of its exploration and development activities.”
Email: admin@australres.com
Web: www.australres.com