Explorers on the Move
OZ MINERALS has struck a greenfields exploration deal with Red Metal, which would significantly increase its exploration footprint in Australia.
The Greenfields Discovery Alliance would give OZ Minerals a two-year option to fund a series of mutually agreed, proof-of-concept work programs on six of Red Metal’s early-stage projects, targeting base metals mineralisation in WA and QLD.
OZ Minerals head of exploration and growth Richard Holmes said the alliance was borne from the experience the companies had gained working together on the Punt Hill project near the Carrapateena copper project, currently in construction in South Australia.
“Red Metal has demonstrated all the qualities we look for in partners – strong technical ability, a collaborative approach to ventures and external stakeholders, and an entrepreneurial spirit,” Mr Holmes said.
“The projects selected for the Alliance offer a rare opportunity to gain access to large land holdings in terranes with significant mineral endowment and frontier terranes with low cost programs to test new concepts.
“Many of these areas are under cover and enable OZ Minerals to provide its technical expertise for exploring under cover to support our partner.”
OZ Minerals has committed to funding $8.05 million in exploration and $1.8m in initial cash payments over the first two years.
The miner could earn between 51 per cent and 70 per cent of a project.
Exploration under the Alliance would begin early in the 2019 field season with high-resolution gravity surveys on the copper-gold and copper-nickel targeted Nullarbor project on the Nullarbor Plain in WA, and Lawn Hill near Mt Isa in QLD.
This would be followed by proof-of-concept drilling at Mount Skipper and Gulf, also near Mt Isa in QLD, and at Nullarbor.
Work programs on the Yarrie project in north-west WA and the Three Ways project in QLD were pending granting of the tenement, which was expected in 2019.