Monax Mining (ASX: MOX) has galvanised into the strengthening titanium-vanadium space after securing an agreement to earn up to 80% of Mithril Resources’ (ASX: MTH) Limestone Well tenements that are “immediately along strike” from Neometals’ (ASX: NMT) Barrambie titanium-vanadium deposit near Meekatharra in Western Australia.
The Barrambie deposit hosts a JORC resource of 280.1 million at 9.18% titanium dioxide and 0.44% vanadium pentoxide.
According to Monax and Mithril, the Barrambie mineralisation can be traced along strike for numerous kilometres both north and south of the deposit including across the Limestone Well tenements.
Under the agreement terms, Monax will spend an initial A$150,000 on exploration in the first year of the agreement.
The company can then earn 60% in the project by spending A$1.5 million over three years, including the initial A$150,000.
After this period, Mithril has the option to contribute to advancing the project on a pro rata basis.
However, if Mithril chooses not to contribute, Monax has the right to lock-in an additional 20% by spending a further A$1 million over two years.
Mithril then has the opportunity to contribute on a pro rata basis or dilute its holding in the project further.
Limestone Well tenements
Limited base metals and gold exploration has been carried out over the Limestone Well tenements, with Monax pointing out the tenements have never been explored for vanadium.
“[The tenements] represent an excellent target for the discovery of vanadium mineralisation in a proven vanadium belt,” Monax stated.
In addition to the project’s proximity to Barrambie, it is also close to Australian Vanadium’s (ASX: AVL) flagship Gabanintha vanadium project.
Monax plans to begin a reconnaissance aircore drilling program across the Limestone Well project as soon as it has obtained a program of work approval from the WA Government.
The program aims to confirm the Barrambie mineralisation continues onto the Limestone Well tenements.
Once Monax has proved this to be the case, it plans to undertake a reverse circulation drilling campaign to prove up a resource and define the extent of the mineralisation.
Mithril managing director David Hutton said he looked forward to seeing the outcome of Monax’s exploration activities.
By mid-morning trade, Monax’s share price was unchanged at A$0.003, while Mithril’s stock price remained steady at A$0.012.