PERTH (miningweekly.com) – Copper and gold miner Oz Minerals will spend up to A$10-million at the Maslins iron-oxide copper gold (IOCG) project, in South Australia, to earn a 70% stake.
The agreement with ASX-listed Investigator Resources would require Oz Minerals to commit to a A$1.4-million minimum spend on the project area.
“This agreement is the culmination of a significant effort by the Investigator team to present a compelling exploration opportunity that has been taken up by one of Australia’s pre-eminent mining companies, and one that has its key assets of the Prominent Hill mine and Carrapateena development projects in South Australia,” said Investigator acting CEO Andrew McIlwain.
“This represents a significant opportunity for Investigator’s shareholders to realise the value of the Maslins target.”
The Stage 1 programme will see Oz Minerals spend A$1.4-million on early exploration work, which will be completed by July 2020, at which point the company would either withdraw or commit to Stage 2 expenditure of A$4-milion, to earn an initial 51% interest in a joint venture (JV).
Once the JV has been formed, Oz Minerals would have the option of spending a further A$6-million over a two-year period, to take its interest in the Maslins IOCG projects to 70%.
Oz Minerals head of exploration and growth Richard Holmes said on Monday that the company’s commitment to the Maslins project was a key opportunity for the company to explore the significant potential of the IOCG target in its hunt for future copper resources in South Australia.
“It further consolidates Oz Minerals’ exposure to the Olympic Domain with Prominent Hill, Carrapateena and the Punt Hill JV to the north of Maslins.”