THE BOURSE WHISPERER: Sentosa Mining (ASX: SEO) has signed up to purchase a 100 per cent interest in the Darvii Naruu copper gold project in Gobi-Altai province, western Mongolia.
The purchase comes via the acquisition of privately owned Australian and Mongolian companies.
The Darvii Naruu project comprises seven semi-contiguous licenses covering a total area of just over 62,735 hectares.
The project is located within the South Gobi Arc, which hosts Rio Tinto’s (ASX: RIO) Oyu Tolgoi copper-gold deposit.
Under the terms of the agreement Sentosa will spend $150,000 on a Work Program, which will involve flying an aeromagnetic and radiometric survey.
Sentosa explained it will then analyse the results of the survey, after which it then has the right to decide whether to proceed with the acquistion.
Should that be the outcome Sentosa will issue 5.5 million fully paid ordinary shares and a 0.5 per cent Net Smelter Return Royalty as consideration for a 100 per cent interest in all of the tenements.
“The investment into Mongolia represents a unique platform to gain access to a recognised mining jurisdiction hosting numerous world class mineral deposits,” Sentosa Mining executive chairman Nigel Gellard said in the company’s announcement to the Australian Securities Exchange.
“Western Mongolia is vastly underexplored by modern exploration methods and the agreement presents Sentosa with an outstanding opportunity to potentially make a discovery of a large-scale mineral deposit.
“With its substantial mineral endowment, and close proximity to China, Mongolia is a leading frontier for exploration and mining.”
Geological map and tenement holding of the Darvii Naruu project
Sentosa said historic exploration has defined multiple prospects at Darvii, including the main prospect Mushroom Reef, which the company considers to have characteristics comparable with the surface alteration footprint of a porphyry copper gold deposit
A spatially extensive iron-oxide iron-leach cap overlying Devonian mafic volcanics;
Close proximity to later stage felsic plutonism;
Polyphase structural deformation of strata;
Numerous occurrences of malachite in fractures with low to high-grade gold and/or copper in outcropping quartz veins;
Moderate anomalism of silver, arsenic, antimony, zinc and molybdenum in soil and stream sediments; and
Maximum rock chip values of 5.8 per cent copper and 34.4 grams per tonne gold have been collected at Mushroom Reef.
Anomaly 13 is located eight kilometres south of the Mushroom Reef prospect, where encouraging rock chip samples have also been collected with maximum assay values of 21 per cent copper, 2.1g/t gold, 0.37g/t platinum, 0.37g/t palladium and 0.63 per cent nickel.