THE BOURSE WHISPERER: Base metals explorer Mithril Resources has earned an 80 per cent interest in the Illogwa IOCG Target Area tenements under the Sammy Joint Venture by completing expenditure of $2 million.
Illogwa is situated on Mithril’s Huckitta project, which is located east of Alice Springs in the Northern Territory.
Project location plan. Source: Company announcement
It lays within three tenements, two of which are subject to a joint venture with Sammy Resources, a wholly owned subsidiary of ASX-listed Cazaly Resources.
Mithril has notified Sammy it has satisfied its earn-in expenditure under the agreement.
Sammy now has 60 days to elect to contribute pro-rata on expenditure going forward or revert to a 1.5 per cent Net Smelter Returns royalty.
Should this be the case, Mithril will take a 100 per cent interest in the project.
Mithril recently announced it the commencement of a 3,800 metre program of air core, reverse circulation and diamond drilling, representing the first ever test of four priority drill targets at Illogwa, as well as multiple conceptual geophysical targets.
“Each of the priority drill targets has significant outcropping copper mineralisation and associated alteration,” Mithril Resources said in its ASX announcement.
“Illogwa represents a newly recognised Proterozoic copper – gold province characterised by a 50 kilometre long belt of structurally deformed granite and sedimentary sequences that contain variable amounts of quartz veining, strong iron and fluorite alteration, and outcropping copper – gold mineralisation.”
Mithril said it anticipates receiving the first results from the drilling program by late August.