Australia-based mineral exploration and development company Argonaut has increased its ownership of the Lumwana West copper concentrate project, in Zambia, from 51% to 90%, through a final payment of $1.1-million to the project vendors.

Argonaut achieved the acquisition through a deal, signed in May, with Chilean copper mining company Antofagasta, which has become a cornerstone investor in the project, funding it from the exploration stage to production.

“Under the option agreement, Antofagasta can fund 70% of Lumwana West by supplying $18.9-million on exploration, plus the amount required – which is yet to be determined – to complete a feasibility study,” says Argonaut director Lindsay Owler, adding that the agree-ment covers all the phases of the project’s development, from regional exploration to the completion of a feasibility study.

“The implications of this agreement are considerable. Lumwana West is now fully funded, with a timetable for development and the project funding provided through the agreement, which ensure that Argonaut’s capital requirements are met,” says Owler.

Project Progress
Major exploration work started at Lumwana West in May. The work included diamond core drilling, which targeted extensions and repetitions of the Nyungu deposit, as well as discovery-phase drilling at the West Mwombezhi and Kavipopo prospects.

“The tenor of these targets, the scarcity of emerging copper mines and the global decrease in exploration activity makes this work internationally significant,” says Owler.

“The deal highlights that junior mining companies with high-quality projects can attract funding, even in negative economic times,” he adds.

Lumwana West is located in Zambia’s North-Western province, 220 km west of the Copperbelt and 65 km west of the town of Solwezi.

The Lumwana West licence area covers several prospects, as defined by regional soil geochemistry, and has a global exploration target of between 1.090-million and 1.560-million tonnes at 0.45% to 0.65% copper.