Minotaur JV partner fast-forwards $6M exploration spend

THE DRILL SERGEANT: Minotaur Exploration’s (ASX: MEP) Eloise copper Joint Venture partners have committed to a $6 million accelerated exploration program through to June 2015.

The program is to include new ground geophysics and deep drilling at the Artemis copper-gold-zinc prospect 50 kilometres southeast of Cloncurry in Queensland.

 

The Eloise copper Joint Venture tenements (dark blue) and location of
Artemis prospect and Sandy Creek resource. Source: Company announcement

 

The Eloise copper JV is managed and operated by Minotaur Exploration while exploration expenditure is contributed by Adelaide based joint venture partner Golden Fields Resources (GFR).

GFR will earn a 50 per cent beneficial joint venture interest upon expenditure of $6 million over 4 years.

The JV covers tenements EPM 17838 and EPM 18442, but excludes parts subject to the Altia joint venture Minotaur has with Sandfire Resources (ASX: SFR).

As at the present time, GFR has earned 15 per cent beneficial interest in the tenements.

Minotaur said the new workplan and budget, which has been approved by the joint venture committee, represents a major scaling-up of its partner’s spend rate to such an extent that it will earn its 50 per cent beneficial project interest by end March 2015, 33 months earlier than expected.

“The JV party’s commitment to ramp-up its investment rate represents a significant endorsement of copper-gold prospectivity across the JV tenements and Minotaur’s project management performance,” Minotaur Exploration said in its ASX announcement.

Already, low-frequency, high-power, fixed-loop B-Field EM surveys are underway at Artemis with loop orientations relative to the plunge of mineralisation at Artemis guiding drill positions.

Down-hole EM will be used in each borehole to check conductor continuity between holes and refine dip orientation of conductive plates.

The EM system will be then deployed to the adjacent Sandy Creek deposit to locate potential high-grade pods within the resource.

Minotaur explained a large number of ground EM verified VTEM targets in the vicinity of Artemis remain untested and that the new budget provides funding to drill test 10 basement conductors, all of which have potential to host iron sulphide copper-gold mineralisation similar to Artemis.

“As mineralised geometries are refined a second rig with wedge capability and power to drill to 600 metre depth will be introduced for in-fill drilling at 25 metre centres, to check continuity between sections,” the company said.

“Once both rigs are on site the drilling operation will expand to 24-hour cover and is expected to continue over 4 months for 40 boreholes.

“Subject to geological variations, drill intensity is intended to allow estimation of a JORC Indicated resource for Artemis and an upgrade of the Sandy Creek historic resource.”

The new workplan is set to greatly enhance the rate of joint venture investment at the Eloise project with GFR’s 50 per cent beneficial interest now forecast to be achieved in March 2015.

Once this occurs each party will contribute equally to project expenditures.

Minotaur’s contribution from that time and through to June 2015 will be approx. $0.85 million.

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Website: www.minotaurexploration.com.au