PERTH (miningweekly.com) – Diversified miner South32 has signed a A$6-million earn-in agreement over ASX-listed Superior Resources’ Nicholson base metals project, in Queensland.
Under Stage 1 of the earn-in agreement, South32 would sole fund an initial A$2-million, or 4 000 m of drilling within the first 12 months of the agreement, with funding to start immediately.
The diversified company could then elect to sole-fund a further A$4-million on exploration over a four-year period, to earn a 70% interest in the project.
“The initial exploration programme is targeting up to three Tier 1 equivalent, drill-ready Mount Isa style lead/zinc/silver targets, which we believe could be similar in size to the McArthur River and Century deposits,” said Superior MD Peter Hwang.
Superior would act as operator of the joint venture (JV) during both Stage 1 and 2 of the earn-in.
“The earn-in and JV agreement with South32 is a significant milestone for Superior’s lead/zinc/silver strategy. It validates the potential of the project to host a world-class base metals deposit and ensures that we will be fully funded to complete the substantial drilling programme within the first year of the JV.”
Drilling is expected to start shortly after the completion of an Aboriginal cultural heritage survey, scheduled for early June.