PERTH (miningweekly.com) – ASX-listed junior Hannans Reward said on Tuesday that its joint venture (JV) partner, Lovisagruvan AB, would proceed with Stage 2 of the Pahtohavare copper/gold project, in Sweden.
Under the JV agreement signed in March this year, Lovisagruvan earned an initial 35% interest in the project area by spending A$700 000 on exploration. The Swedish firm could increase its shareholding to 51% by lodging an exploration concession application and environmental permit for the oxide deposit, and providing Hannans with an interest-free working capital facility of A$475 000.
Lovisagruvan could earn a 75% interest in the JV by delivery a feasibility study within four months of the grant of an exploration concession and an environmental permit.
Hannans would maintain a 25% free-carried interest in the JV until a decision to mine was taken.
The Pahtohavare project comprises three deposits located 8 km from Kiruna. The Central deposit is currently estimated to contain a Joint Ore Reserves Committee-complaint resource of 1.4-million tonnes, grading 1.8% copper and 0.6 g/t gold.