PERTH (miningweekly.com) – ASX-listed junior Sayona Mining has exercised its option to acquire the Western Iron tenement, at the East Kimberley graphite project, in Western Australia. The company said on Thursday that it would pay A$200 000 for the tenement.
The East Kimberley project included one granted tenement and three separate tenement applications, covered by two option-to-purchase agreements. The project covered 278 km2 and comprised the Keller and Corkwood areas, which had not previously been explored for graphite potential.
With the company exercising its option to acquire the Western Iron tenements, Sayona would also be responsible for paying a 1% gross production royalty to the tenement owner Western Iron Ore, which would also maintain a back-in right to the nickel, copper and iron mineralisation by paying A$100 000 within the next 12 months.
Sayona recently completed a drilling programme at the Corkwood area, comprising 33 reverse circulation drill holes covering six prospective areas.
The company noted that every hole intersected visual flake graphite mineralisation, with significant zones of over 50 m downhole widths in several holes.
The company’s drilling programme had identified graphite mineralisation over 7 km within the 25 km strike extent of the Corkwood geochemical and geophysical anomaly.