Resolution Minerals completes due diligence at Wollogorang and trenching at 64North
Resolution Minerals expects its partnership with Oz Minerals to secure long-term funding and technical exploration collaboration on the NT copper project.
Junior explorer Resolution Minerals (ASX: RML) has completed a formal due diligence process for the Wollogorang copper project in the Northern Territory’s McArthur Basin.
The milestone paves the way for joint venture partner Oz Minerals (ASX: OZL) to embark on a minimum $1.6 million of activity to fast-track discoveries at the project.
In August, the companies entered into a multi-year farm-in and joint venture agreement at Wollogorang whereby Oz can earn a 51% interest by spending $4.9 million over five years and Resolution may retain 49% interest by electing to participate from year six onwards.
To earn its interest, Oz is required to undertake exploration to the value of $1.6 million over an initial two-year period, with a further $3 million over a three-year period (stage one).
It will also pay Resolution $300,000 for an airborne versatile time domain electromagnetic (VTEM) survey completed this year which identified dozens of untested conductors and highlighted the sedimentary-hosted copper potential of Wollogorang.
If Resolution decides not to participate in the joint venture from year six, Oz will have the option to earn a 75% interest by sole-funding and delivering a positive final investment decision to mine at a minimum spend of $1 million per year over five years.
Resolution managing director Duncan Chessell said the partnership secures long-term funding, technical exploration collaboration and mining expertise to explore current identified targets with potential to contribute to the next large-scale copper mine in the Northern Territory.
World-class region
The Wollogorang project is located over a 3,825-square-kilometre footprint in the region which hosts the world-class McArthur River lead-zinc mine.
It is surrounded by mid-tier and major companies including BHP (ASX: BHP), Rio Tinto (ASX: RIO) and Teck Resources.
According to recent Fraser Institute research, the Northern Territory ranks in the top 20 best mining jurisdictions in the world and is relatively underexplored.
As one of Australia’s largest copper producers, Oz Minerals owns and operates the Prominent Hill and Carrapateena mines in South Australia.
64North trenching
Resolution today also reported progress at its US assets, having just completed its first trenching program at the Tourmaline Ridge prospect within the 64North gold project in Alaska.
The program aimed to define the scale and structure of gold mineralisation and follow up on a previously identified zone containing surface rock chips of up to 118 grams per tonne gold.
Tourmaline Ridge lies on a northeast-southwest trend of mineralisation leading to the Goodpaster discovery owned by Northern Star Resources (ASX: NST), which is undergoing a $21 million resource drill-out along strike.
Samples have been submitted to BV Laboratories in Alaska for assaying and Resolution expects a long turnaround time due to high demand at the conclusion of the North American field season.
The company is considering the completion of further trenching, geophysics and drilling programs once the results are received.