THE BOURSE WHISPERER: Clancy Exploration has entered into a joint venture with Mitsubishi Materials Corporation of Japan on three copper-gold projects in New South Wales.
Under the terms of the agreement, Mitsubishi has the right to earn 49 per cent of the Cundumbul, Currumburrama and Genaren projects by funding $3 million over three years with $500,000 minimum commitment in the first year.
Clancy will manage the projects on behalf of the JV partners.
The company said the joint venture with Mitsubishi will strengthen its exploration program in NSW by providing the exploration funding to test copper-gold targets on all three projects.
“We are very pleased to have formed this partnership with Mitsubishi in what is a challenging capital market for junior exploration companies,” Clancy Exploration managing director Gordon Barnes said in the company’s announcement to the Australian Securities Exchange.
“This joint venture funding will enable Clancy to rapidly advance exploration on these projects, while we continue to advance our Condobolin and Trundle projects.”
According to Clancy Exploration the three joint-ventured projects all contain porphyry copper-gold targets.
Map showing the location of the Cundumbul, Currumburrama and Genaren projects. Source: Company announcement
The Cundumbul project consists of two exploration licenses in the Molong Volcanic Belt between Molong and Wellington and hosts the Cadia porphyry copper-gold deposits of Newcrest.
The Currumburrama project is located in the Currumburrama Volcanics, 40 kilometres east of West Wyalong.
The Genaren project is located at the northern end of the Northparkes Igneous Complex near the Northparkes copper-gold mine of Rio Tinto.
Clancy has already commenced work on the Cundumbul project with auger soil sampling, rock chip sampling and geological mapping in progress.
Geophysical surveys at all three projects are scheduled to commence in the September quarter.