PERTH (Miningweekly.com) - The exploration arm of diversified miner Rio Tinto has struck a deal with ASX-listed junior Trek Metals to explore that company’s Jimblebar nickel/copper project, in Western Australia.
Rio Tinto Exploration would pay Trek A$50 000 up-front for an exclusive six-month option to explore the project area, and will commit to spending a minimum of A$100 000 on the tenement during the option period.
The exploration company then has the right to extend the option period to 12 months for an additional A$25 000.
At any time, Rio Tinto Exploration could choose to farm-in to the Jimblebar project, and can earn an 80% interest in a joint venture (JV) by sole funding exploration expenditure of at A$5-million on the tenement, including at least 2 000m of reserves circulation drilling or diamond drilling, within a six-year period.
Once Rio Tinto Exploration has earned its 80% interest in the project, it would fund Trek’s share of the JV expenditure until the earlier of an order of magnitude study has been completed on the development of a mining operation, or the cumulative sole-funded expenditure of A$40-million by Rio.
“We are delighted to be partnering with Rio Tinto Exploration to advance the exploration for magmatic nickel-copper at Jimblebar, which is located in the Tier-1 Pilbara mining district of Western Australia,” said Trek CEO Derek Marshall.
“Rio Tinto Exploration brings significant technical and operational expertise to the table, and we are very excited to be able to collaborate with their team to generate, refine and test targets across the tenements.
“This agreement allows Trek to continue to focus on our flagship Tambourah Lithium project, where we plan to commence our maiden drill program this quarter, and continue to advance our high-grade Hendeka manganese project, while keeping a free-carried exposure to the nickel-copper potential at Jimblebar and allowing it to progress much quicker than would otherwise be achievable.”