JOHANNESBURG (miningweekly.com) – The Silver Swan North nickel and gold project, in Western Australia, would revert back to FerrAus, following Mithril Resources’ and BHP Billiton’s withdrawal from the joint venture (JV) project.

Mithril Resources has agreed to transfer its JV interest to FerrAus in return for the grant of a 1,5% net smelter return royalty in all minerals produced from the licences. In addition, Mithril Resources has agreed to grant FerrAus an option to acquire the royalty anytime in the next three years for $225 000. In consideration for the option, FerrAus would pay Mithril Resources $15 000.

Mithril said in a statement that although the tenements were considered prospective, they did not currently host any identified mineral resource. “Converting the company’s participating interest to a royalty provides shareholders ongoing exposure to any future benefits and allows the company to focus on core projects in the near term,” it added.

FerrAus stated that the Silver Swan project would now be the focus of a more intense assessment of gold potential, including a review of previous high grade gold intersections.

The company added that although it remained committed and focused on iron-ore development in the east-Pilbara region of Western Australia, FerrAus planned to review the gold exploration potential of Silver Swan, with the objective of follow-up gold exploration on a farm-in exploration agreement.

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