Australian major South32 is advancing its strategy of partnering with junior explorers to access attractive opportunities and has its eye on another project in the US state of Alaska.
The miner, which currently has operations in Australia, South Africa and Arizona, has entered into an agreement with TSX-listed Freegold Ventures granting it an option to earn a 70% interest in the Shorty Creek project, about 120 km from Fairbanks.
In terms of the agreement, South32 has to contribute at least $10-million in exploration funding over a four-year option agreement, during which time Freegold will remain the operator.
The Shorty Creek project is thought to have significant porphyry potential. To date, 12 widely spaced holes with average hole depths of 500 m have been drilled at the Hill 1835 target, all of which intersected significant and consistent copper, gold, silver and tungsten mineralisation.
In 2017, South32 entered into an agreement with TSX-listed Trilogy Metals, to fund exploration of its high-grade copper resources in north-west Alaska, collectively known as the Upper Kobuk Mineral Projects (UKMP). The group will invest up to $30-million over three years to explore, expand and advance the UKMP, and in particular to test the extension of the existing Bornite deposit, with an option to form a 50:50 joint venture.