JOHANNESBURG (miningweekly.com) – Oz Minerals has entered a heads of agreement with Mithril Resources to explore seven new nickel/copper licence areas in South Australia.
Mithril will undertake a target generation exercise in the Coompana block of the far west of South Australia, with a view of identifying potential drill targets on the relevant tenements. Oz Minerals will then invest $250 000 as part of the Stage 1 targeting.
If Mithril identifies potential drill targets, and the outcome of the exercise is acceptable to both parties, negotiations will advance to a formal joint venture to undertake exploration on the relevant tenements. Initial drill testing could be conducted by Mithril in the early half of 2017.
“The area that Oz Minerals will be exploring with Mithril is real frontier country. It is exciting greenfields exploration in rocks that are comparable to those just across the border that are known to host major mineral deposits,” Oz Minerals MD and CEO Andrew Cole said on Thursday.
He added that the new wave of exploration aligns with the state government’s Plan for Accelerating Exploration, known as PACE 2020, which aimed to unlock South Australia’s natural resources.
The PACE initiative has collected and released a comprehensive geoscientific data set over the Coompana province, which includes high-resolution aeromagnetic data, seismic survey data and magnetotelluric data. In addition, an extensive ground gravity survey is planned for the fourth quarter.