THE BOURSE WHISPERER: ERO Mining (ASX: ERO) has been granted a Deed of Access – Exploration by the Defence Department over Exploration Licence 4854.
The Exploration Licence is part of the Billa Kalina project, located in the Olympic Dam region of central South Australia.
The Billa Kalina project is being explored under the terms of a Joint Venture between ERO and Maximus Resources (ASX: MXR).
Under the terms of the JV ERO is earning a 50 per cent interest in the tenements (ELs 4854,4463, and 4899) by spending $3 million over the life of the Agreement.
ERO Mining is the manager and operator of the Joint Venture.
The Billa Kalina project is strategically located 70 kilometres north–northwest of the Olympic Dam copper–gold–uranium (IOCGU) mine, and 45 km east of the more recent discovery and mine development at Prominent Hill.
The project area is situated within the recently defined Restricted Amber Zone of the larger Woomera Prohibited Area (WPA).
ERO indicated on-ground exploration activities are planned to commence in January 2013.
The initial phase of this activity will be a ground gravity survey designed to validate a gravity anomaly at Peeweena Dam, which was first identified by a wide-spaced 7km by 7km region survey completed in the 1970s.
Location of Peeweena Dam gravity anomaly in relation to IOCGU mines. Source: Company announcement
“Confirmation of the Peeweena Dam gravity anomaly would be a highly significant result and justify a follow up deep drilling program to test the anomaly for iron oxide, copper, gold +/- uranium (IOCGU) mineralisation,” ERO Mining said in its ASX announcement.
“The company and our joint venture partner MXR are very pleased to have finally reached an agreement with the Defence Department at Woomera and to be able to recommence exploration at Billa Kalina after an absence of almost four years.”