Noronex and South32 join forces to accelerate large-scale copper exploration in Namibia

Junior explorer Noronex (ASX: NRX) has secured an earn-in agreement and strategic alliance with a wholly-owned subsidiary of South32 (ASX: S32) to accelerate copper exploration in Namibia.

South32 has committed to fund $15 million in exploration over five years at Noronex’s Humpback-Damara project in the Kalahari copper belt and will earn up to 60% equity in subsidiary Noronex Exploration and Mining, which holds the project.

The equity will apply to a regional package of seven granted exploration prospecting licences and four recent licence applications over a total of 7,677 square kilometres.

First-year program

A first-year program of works has already been agreed upon to test a number of areas at Humpback-Damara, with an approved minimum expenditure of $3m payable by South32.

The program will begin with a detailed in-fill gravity survey over four main targets followed by a drilling program in October, initially at the Fiesta prospect and then moving over to the Damara Zone at the northern margin of the belt.

Drill positions at Fiesta will be finalised upon completion of the survey.

Noronex will manage the work programs and charge a 7.5% operator fee to South32.

Strategic alliance

South32 has also committed to a Namibia-wide strategic alliance agreement with Noronex to target a new generation of copper and base metal projects for development by both companies.

Under the terms of the alliance, Noronex will generate early-stage copper opportunities backed by generative funding from South32 of $200,000 per year.

Once Noronex has secured the mineral rights to any discovery, each opportunity will be exclusively offered to South32 on agreed terms and conditions.

Should South32 accept two or more exploration opportunities in a 12-month period, a $200,000 bonus generation fee will be payable.

The strategic alliance agreement will expire in December 2026.

‘Strong validation’

Noronex executive director James Thompson said the earn-in and strategic alliance was a “transformational move” for the company.

“This deal represents a strong validation of the impressive portfolio of copper projects we have been progressively building since we re-listed with a copper and Namibia focus three years ago,” he said.

“The technical, financial and strategic support from South32 will allow us to search and drill across our assets in the Kalahari copper belt to target exciting new copper and base metal opportunities.”

Extensive tenements

Noronex’s exploration package covers over 8,500 sq km within the Kalahari copper belt, which runs from Central Namibia to Northern Botswana.

The tenements contain 300km of strike length encompassing the key NPF-D’Kar formation contact point, where most major copper deposits within the belt are known to occur.

Noronex also has over 1,600 sq km of pending exploration applications in the region.

Mr Thompson said copper mineralisation intersected in historical and recent drilling at Humpback-Damara appears to have many hallmarks of deposits defined in neighbouring Botswana, including the Zone 5 discovery owned by Chinese miner MMG Ltd that has a resource of 167 million tonnes grading 2.1% copper.