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Centrex signs Kimba Gap MoU

7th April 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Metals developer Centrex Metals has signed a nonbinding memorandum of understanding with its joint venture (JV) partner Baotou Iron & Steel over the Kimba Gap magnetite iron-ore project, in South Australia.

Under the terms of the agreement, Baotou would undertake preliminary metallurgical testwork on a 300 kg bulk iron-ore sample from the Kimba Gap project, at its own costs.

Centrex noted that up to A$250 000 of the testwork costs would be counted as deemed contributions towards payments required under any future exploration JV between the two companies, over the project area.

Testwork was expected to start in China shortly, and the results would be released over the coming months, Centrex told shareholders.

Baotou was Centrex’s JV partner on the Bungalow magnetite project, and had previously requested that the Bungalow prefeasibility study being undertaken be extended to analyse synergies using common supporting infrastructure with the Kimba Gap project, given that the two projects were similar in nature.

The testwork was expected to form part of this analysis.

The Kimba Gap project currently has an inferred mineral resource of 487-million tonnes, and Centrex was in the process of advancing an application for a mineral claim over the project area, which would likely be granted in the first half of this year.

Edited by Creamer Media Reporter

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