PERTH (miningweekly.com) – ASX-listed explorer Blackthorn Resources on Friday suspended trading in its shares pending an announcement from the Zambian Ministry of Mines and Minerals Development confirming the status of its Mumbwa prospecting licence.

Blackthorn owns the iron-oxide copper/gold project in a joint venture (JV) with diversified mining group BHP Billiton, which has an option to increase its stake in the project from 40% to 60%, by paying A$15-million.

Blackthorn MD Scott Lowe said at the Africa Downunder conference that its project partner would make a decision on increasing its shareholding in the JV in less than a year.

Once the diversified giant had a 60% stake in the project, the miner would earn the right to fully fund the prefeasibility study.

"If they like the results from the drilling and the concept study, then they have the option of paying us back 150% of our A$10-million regional investment, so in other words A$15-million."

BHP could further increase its holding in the JV to 80% by fully funding the feasibility study.

Earlier this year, Blackthorn reported that it had signed a JV agreement with commodities trader Glencore International to develop its Perkoa zinc project, in Burkina Faso.

Glencore would invest $80-million in the project to move it into production by early 2012.

Glencore would fund the remaining capital required to commission the Perkoa project, with $50-million provided in equity and the balance in project finance.

The Swiss commodities trader would effectively gain control of 50,1% of the zinc project, with Blackthorn and the Burkina Faso government holding an interest of 39,9% and 10% respectively.

Glencore would be responsible for managing the construction at the project, with the aim of producing the first saleable zinc concentrate by early 2012.

Lowe said on Friday that Blackthorn had decided to develop the Perkoa project in a JV vehicle to lower the operating and capital expenditure cost that Blackthorn would be held accountable for.

"We think that the JV solution is an excellent one for our shareholders and allows us to work with a partner like Glencore that has the technical expertise to put the mine into production more cost effectively than we could do on our own."

Construction at the Perkoa project was suspended in mid-2008, after global metal prices dropped sharply. In January this year, Blackthorn announced that it would resume development work on project.

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