THE BOURSE WHISPERER: Winmar Resources (ASX: WFE) has completed its earn-in requirements under the Farm-in and Joint Venture Agreement with Cazaly Iron, a wholly owned subsidiary of Cazaly Resources (ASX: CAZ), for the Hamersley iron project.
Winmar has informed its JV partner Cazaly that it is of the view it has now earned its 51 per cent participating interest in the Hamersley project by virtue of it having expended in excess of $6 million on exploration at the project, as per the Farm-in and Joint Venture Agreement.
The relevant information has been passed onto Cazaly for its review and assessment.
Subject to confirmation by Cazaly, the joint venture between Winmar and Cazaly in respect of the Hamersley Project will be formed.
The participating interests of the parties in the joint venture are Winmar 51 per cent and Cazaly 49 per cent; Winmar will continue to manage the project.
The Hamersley project is located in the Tom Price Region of the Pilbara, in close proximity to Fortescue Metals’ (ASX: FMG) Solomon project and Rio Tinto’s (ASX: RIO) Marandoo and Brockman mines.
Location of Winmar’s Hamersley iron ore project. Source: Company announcement
“Winmar is delighted to have successfully completed its earn-in requirements for the project, which it views as an advanced exploration target with major exploration upside and development potential,” Winmar Resources said in its ASX announcement.
“Moving forward, both parties will be severally liable in proportion to their participating interest for all obligations and liabilities incurred at the project in the course of carrying out future joint venture activities.”
Winmar indicated it has conducted a series of works programs at the Hamersley project, designed to expedite its development.
These included a $2.2 million exploration program completed this year, which included a 20 hole, 4012 metre RC drilling program, and culminated in a major Resource.
The project’s current Inferred Mineral Resource estimate stands at 368 million tonnes at 54.7 per cent iron Fe (58 per cent calcined iron), which includes a Channel Iron Deposit (CID) zone of 343.3 million tonnes at 55.3 per cent iron (58.7 per cent calcined iron).
Winmar has also commenced advanced metallurgical work, environmental assessments and Native Title negotiations.
The company recently completed its latest phase of drilling at the project, in October.
This was a 10 hole, 1500 metre RC program, designed to define the extent of shallow high-grade mineralisation in the southwest of the project area.
The company indicated it hopes to utilise the results to convert a portion of the Resource to the JORC Indicated category.
The Resource at the Hamersley project remains open in several directions with significant intercepts to the southwest and northeast on the edge of the current drill area.
Some of these previous holes finished within mineralisation.