PERTH (miningweekly.com) – ASX-listed Terramin Australia has struck a A$10.5-million exploration agreement with Japan Oil, Gas and Metals National Corporation (Jogmec) on the South Gawler Ranges project, in South Australia.
Under the terms of the agreement, Jogmec will fund an initial A$7.5-million in exploration over three stages and six years, to earn a 70% interest in the project.
On completion of the earn-in, Jogmec would be entitled to purchase a further 6% interest in the project for a further A$3-million investment, and the grant of a 0.5% net smelter royalty.
“The Terramin exploration team is excited that Jogmec shares our vision on the potential of the South Gawler Ranges project where geochemically anomalous epithermal alteration, veins and breccia outcrops, and associated geophysical features, indicate the potential for near-surface large tonnage iron-ore/copper/gold deposits comparable in size to Carrapeteena,” said Terramin executive officer Marin James.
“The increased exploration funding enables an accelerated exploration programme on the project, thereby maximising the chances of a significant return to Terramin from this noncore asset. The ability for Terramin to attract a quality partner such as Jogmec supports Terramin’s approach to early-stage exploration and prospect generation.”