PERTH (miningweekly.com) – Mining major BHP has exercised its option to enter into a A$22-million farm-in agreement with junior Encounter Resources over the Elliott copper project, in the Northern Territory.
Under the terms of a farm-in agreement, the major can earn up to a 75% stake in the project by spending A$22-million on exploration within a ten-year period.
On completion of the farm-in, a joint venture will be formed and the parties will contribute to expenditure based on their percentage interest, in order to maintain their respective holdings.
The Elliott copper project covers some 4 500 km2 in the Northern Territory, and an extensive exploration programme is planned, including seismic surveys and drilling, in order to advance the understanding of basin architecture and to define prospective deposition sites for sedimentary copper mineralisation.
“Copper sourced from sedimentary hosted deposits is one of the fastest growing sources of high-grade copper in the world. Encounter controls an extensive first mover portfolio of copper projects in the Greater McArthur Superbasin in the Northern Territory,” said Encounter MD Will Robinson.
“The potential for this region to host large sedimentary hosted copper deposits is rapidly emerging and we are delighted to be teaming up with BHP to apply leading edge technologies in the search for tier 1 copper deposits at Elliott.
“The outcomes of the jointly designed validation programme at Elliott have been illuminating and bolstered the potential for the discovery of large sedimentary hosted copper deposits under shallow cover in the Northern Territory.”