Xstrata ends Intercept Hill farm-in agreement
PERTH (miningweekly.com) - Swiss-listed Xstrata’s copper division has opted out of a farm-in agreement with ASX-listed Argo Exploration, over the junior’s Intercept Hill joint venture (JV), in South Australia.
Xstrata Copper has given Argo 30-days notice, in accordance with the farm-in and JV agreement, that it would withdraw from the agreement, having made all the minimum expenditure necessary to withdraw from the JV during the earn-in period.
In a statement on Thursday, Xstrata Copper noted that based on the drilling results from the farm-in area, the project was unlikely to host medium- to high-grade mineralisation of reasonable economic tonnage, which would be materially relevant to a company of Xstrata’s size.
Argo has now noted that it would look to make all the necessary arrangements to have full records of the work carried out by Xstrata Copper delivered to the company in the coming weeks, along with the relocation of the relevant drill core to storage in Adelaide.
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