PERTH (miningweekly.com) – Junior Tasman Resources on Monday reported that the exploration arm of diversified miner Rio Tinto had withdrawn from a farm-in agreement over Vulcan copper/gold/uranium project, in South Australia.
The farm-in between Tasman and Rio Tinto Exploration started in 2012, and provided the junior with a significant cash injection to advance the Vulcan project and identify a number of new high-priority targets for follow-up.
However, drilling has so far not intersected thick and medium- to high-grade mineralisation.
Tasman told shareholders on Monday that despite these results, the company believed that there were a number of very positive outcomes from the drilling completed to date, pointing out that only 17 holes have been drilled within the 12 km2 Vulcan target zone.
Significant parts of the Vulcan target also remained completely unexplored and have the potential to host mineralisation, the company added.
With Rio Tinto Exploration’s withdrawal from the farm-in, Tasman would look to advance exploration at Vulcan either through a new joint venture agreement, or on a sole-funded basis.
A decision on which alternative would be adopted would likely be made over the coming months, the company said.