PERTH (miningweekly.com) – Explorer Monax Mining has refined its focus on the Millers Creek project, in South Australia, establishing it as a designated project (DP) with the help of its strategic alliance partner, Chilean copper producer Antofagasta.

The Millers Creek DP would comprise three tenements owned by Monax subsidiary Monax Alliance, as well as the four tenements held by Maximus Resources.

Earlier this week, Monax signed a memorandum of understanding with Maximus to evaluate the viability of developing the four tenements making up the Billa Kalina project.

The Billa Kalina project has now been incorporated into the Millers Creek DP.

Monax MD Gary Ferris said on Thursday that the new DP was a significant project for the company and provided Alliance with a major exploration focus within a prospective and underexplored part of the Gawler Craton.

“Due to being a heavily restricted defence area for many years, exploration access within the Woomera prohibited area (WPA) has been virtually nonexistent.”

Ferris noted that the recent opening of the WPA had provided Alliance with a major focus to secure tenements for exploration.

The company has already started the lance access approvals process and plans to undertake detailed gravity surveys in late 2013 or early 2014, over selected target areas.

Under the terms of the alliance with Antofagasta, the Chilean miner had committed to provide $1-million to Alliance over two years, for target generation within South Australia.

Properties identified as of project interest would be assigned the DP status and, once a DP had been formed, Antofagasta would acquire a 51% interest in the project, with Monax retaining the balance.

Antofagasta would then have the option to earn an additional 19% stake in the DP by spending $4-million within three years. Upon vesting its interest at 70%, both parties would have the right to maintain their interest by contributing to exploration and development spends, or to dilute their shareholding in accordance with standard dilution formula.