THE BOURSE WHISPERER: Strategic Energy Resources (ASX:SER) has been granted federal access to Commonwealth land known as Cultana Military Training Area in South Australia.
Strategic Energy described the Cultana area as one of the best remaining blocks to explore for iron-oxide-copper-gold (IOCG) type mineralisation in South Australia.
It forms part of the Olympic Dam province which includes Prominent Hill, Olympic Dam and Carrapateena.
“We are thrilled to have ministerial approval to explore this area,” Strategic Energy managing director Mark Muzzin said in the company’s announcement to the Australian Securities Exchange.
“It has been a very long process, one that I personally have pursued for more than six years and can now say that we have been rewarded.
“We believe this property to be one the best relatively unexplored areas in South Australia.
“We have a number of targets lined up and are keen to get started, hopefully in December.”
Cultana Lease 5010 South Australia. Source: Company announcement
The Cultana Lease covers an area of 792 square kilometres within the Cultana Army Training Area south of Port Augusta in South Australia.
Strategic Energy holds a 75 per cent interest in the licence in a joint venture with U Energy and its parent company, Fleurieu Mines, holds the remaining 25 per cent.
The first activity planned is two holes for test-drilling in the Cultana Inlier.
The Joint Venture is considering flying a 90 kilometre squared HeliTEM geophysical survey over all seven defined IOCG gravity targets to confirm exact drill locations.
Deed of Access needs to be signed with the Department of Defence outlining the parameters of site access.
Strategic Energy has already reviewed an earlier draft document and said it foresees no issue with obtaining the deed.
The project also requires standard regulatory approvals from DMITRE (Department for Manufacturing, Innovation, Trade, Resources and Energy, South Australia).
The Joint Venture is aiming to drill the key targets by December this year or early January 2013.
This will be dependent on the availability of drill rigs and all usual permissions being granted.
“This is a major milestone for the company and we are excited that we have unlocked what we believe is our biggest asset,” Muzzin said.