PERTH (miningweekly.com) – Mineral sands miner Iluka has signed a nonbinding term sheet with fellow-listed Monax Resources over a proposed farm-in and joint venture agreement over the Phar Lap iron-oxide/copper/gold project, in South Australia.
Under the term sheet, Iluka could earn an 80% interest in the project by funding A$2-million in exploration over a four-year period. The mine was expected to spend A$400 000 within the first two years of the earn-in period, and could elect to withdraw from the farm-in at any time after this expenditure.
Monax had previously completed a detailed infill ground survey over two targets on the property, identified by existing gravity and magnetic survey data.
The junior noted that an Aboriginal heritage survey had also been completed, with both targets cleared for drilling.