A mining alliance pushing to create a Cloncurry region minerals ‘hub’ has added 1226sq km of tenure to the mix in a deal with Sandfire Resources.
The Cloncurry Alliance is a strategic collaboration between Minotaur Exploration and Oz Minerals, whose local assets include the Eloise and Jericho joint ventures.
The companies announced today that they had established a joint venture heads of agreement with Sandfire over an extensive tenement group near Cloncurry.
They say the new ‘Breena Plains Joint Venture’ with Sandfire provides significant impetus to the hub concept.
It will see them invest up to $8 million in the exploration project over the next five years.
“Minotaur has progressively honed its investigative approach around Cloncurry over the past decade,” business development and exploration manager Glen Little said.
“With OZ Minerals’ ongoing exploration funding support, we
expect the Breena Plains package will deliver the alliance a library of prospecting options.”
For securing the Breena Plains JV Minotaur is to receive a success payment of $225,000 from OZ Minerals.
The Breena Plains JV requires the alliance to invest $1 million in exploration in the first year. It may then earn an initial 51 per cent tenement interest by sole funding a further $3 million through the next two-year period.
The alliance may then earn an additional 24 per cent interest for the further expenditure of $4 million over the subsequent two years.