THE BOURSE WHISPERER: Carawine Resources (ASX: CWX) released an ASX double banger in regards to the company’s Paterson project in Western Australia.
The first came in the shape of the addition of four new exploration licence applications to the Paterson project.
Carawine Resources explained its tenement applications were lodged simultaneously with competing applications from up to six other applicants and that in such cases the priority of the competing applications is decided by a ballot conducted by the Mining Warden of Western Australia.
“The results of this ballot are good news for Carawine, especially as we have won the largest of the competing tenement applications, adjacent to and adjoining the Baton tenements,” Carawine Resources managing director David Boyd said in the company’s announcement to the Australian Securities Exchange.
“We look forward to progressing these tenements towards grant and evaluating their exploration potential in this highly prospective, and sought-after exploration region.”
The four exploration licence applications, named Cable, Magnus, Puffer and Eider are located in the western part of the Paterson Province, and cover parts of the Broadhurst, Yandanunyah and Isdell Formations.
The Cable and Puffer tenements straddle the Vines Fault, a major regional structure associated with several exploration prospects.
The Broadhurst Formation is host to Metals X’s Nifty copper deposit, with Magnus and Puffer located just one kilometre and 20km respectively from Nifty.
The Cable tenement is immediately adjacent to the company’s granted Baton tenements which were the subject of the company’s second announcement of the day.
Carawine announced a Farm-In and Joint Venture Agreement with Rio Tinto Exploration Pty Limited (RTX) a wholly-owned subsidiary of Rio Tinto (ASX: RIO).
The Farm-In and JV will explore Carawine’s Baton (E45/4871 & E45/4955) and Red Dog (E45/4881) Tenements where work to date has identified more than twenty high-priority target areas, covering a range of potential deposit types in the Paterson region, all requiring follow-up exploration.
David Boyd said the commitment from Rio Tinto underlined the potential of the Red Dog and Baton prospects.
“To have one of the world’s largest resources companies committing to significant expenditure on our Baton and Red Dog tenements is a strong endorsement of the prospectivity of the Tenements,” Boyd said.
“RTX is actively exploring in the Paterson to complement their Winu discovery.
“They have the technical knowledge and resources to rapidly and systematically evaluate the numerous high priority targets at Baton and Red Dog, increasing the chances of a successful discovery.
“This deal also ensures Carawine is well positioned to share in the benefit of any discoveries, with Rio Tinto well placed to support a potential development should the exploration activities be successful.
“We look forward to sharing the details of the exploration programs as they progress.”
Under the term sof the agreement RTX is to pay $200,000 cash up-front and subscribe for $300,000 of Carawine shares.
RTX is required to spend $1 million on exploration and complete at least 2,000m of drilling within the first two years.
RTX has the right to earn a 70 per cent interest by spending at least $5.5 million within six years and can earn to 80 per cent interest by sole funding to a discovery milestone, or completion of a scoping-level study on any discovery.
Carawine said that RTX brings high-calibre technical knowledge, exploration resources and recent track record of discovery success in the region to the table.
Carawine indicated it will continue target generation work on its other Paterson project tenements, including the newest additions mentioned above, in line with its strategy of advancing exploration programs in its own right, and/or considering suitable joint venture opportunities.
Carawine said an important aspect of the agreement is that it also allows the company to concentrate its resources in the near term on exploration at its Jamieson project in Victoria, where it has identified porphyry-related mineralisation at its Hill 800 prospect, and potential for additional large copper-gold porphyry mineral systems.
A detailed helicopter-borne magnetic survey has commenced at Jamieson, with results to be used to provide targets for direct drill testing of the porphyry model at depth.
Drilling is planned to commence mid-November, initially targeting extensions to known porphyry-related mineralisation at Hill 800 from relatively shallow depths.