Tivan teams-up with Earth AI to fast-track discoveries at Sandover
Targeting and mapping have been planned for Sandover this year.
Formerly TNG Limited, the now rebranded Tivan (ASX: TVN) has revealed a strategic exploration alliance with Earth AI in relation to the Sandover lithium project, which is 50km south of its Mount Peake critical minerals project in the Northern Territory.
The Sandover project comprises five exploration licences and eight exploration licence applications covering 8,000 square kilometres, and is considered prospective for lithium-bearing pegmatites.
Following Northern Territory Geological Survey work, Sandover is also believed prospective for sediment hosted-copper and iron oxide-copper-gold deposits.
Tivan executed an agreement to acquire Sandover in August last year. The company then paid the consideration of $325,000 to the vendors in January this year for the exploration licences and applications, plus a one-off payment of $200,000.
Earth AI
As its name suggests, Earth AI has developed an integrated artificial intelligence exploration strategy to target, test and verify mineral discoveries.
This process aims to reduce the lead-time and cost to discovery and drilling utilises its mobile low disturbance diamond rig and associated equipment.
Exploration alliance
The agreement between Earth AI and Tivan is to “conduct and fund” certain exploration activities across Sandover for an initial term of four years, with an option for this to be extended a further two years.
Tivan will fund the exploration costs up to a total amount of US$4.5 million.
Exploration activities and costs will be agreed annually.
Under the deal, Earth AI will be appointed exploration manager and oversee day-to-day project management, including all activities and permitting.
If a qualifying grade drill intersection of any mineral is discovered, Earth AI will be entitled to a 2% net smelter return royalty (NSRR) over the discovery area.
However, if Earth AI contributes to certain exploration costs then the NSRR will be adjusted accordingly.
If Tivan decides to dispose of any interest in Sandover, Earth AI will have the first right to acquire the stake. In return, Tivan will have the first right to acquire any NSRR that Earth AI chooses to sell.
Advancing Sandover
Tivan and Earth AI have already begun planning the initial phases of exploration for Sandover.
Initial activities will include targeting and mapping and will be completed this year – with drilling to begin in 2024.