Copper – Paterson Exploration Project

Metals X Limited > Copper – Paterson Exploration Project

Paterson Exploration Project

In addition to the Nifty Copper Operations and the Maroochydore Copper-Cobalt Development Project, and their associated 393km2 of tenure, Metals X controls a further 2,426km2 of the highly prospective Neoproterozoic Yeenena Supergroup of the Paterson Province. These tenements are known as the Paterson Exploration Project (PEP).

The Paterson Province is host to a number of substantial gold, gold-copper, copper and tungsten mines and deposits, including the world class Telfer gold mine. Importantly, during 2018 and 2019, new significant discoveries have been made by Rio Tinto at the Winu project, and by the Newcrest-Greatland Gold JV at the Havieron project, which has re-established the Paterson Province as one of the premier base metal exploration destinations in Australia.

The PEP covers the majority of the Broadhurst Formation, a package of sedimentary rocks that hosts both the Nifty and Maroochydore copper deposits. Due to its remoteness and extensive sand dune cover, the PEP remains significantly under explored.

Geological map of the Yeneena Basin showing the location of major deposits and Metals X exploration tenements

Farm-in & Joint Venture Agreement With IGO Limited

In early June 2020, the Company entered into a Farm-in and Joint Venture agreement with IGO Limited (IGO) across the entirety of the PEP. Key commercial terms inlcude:

    • GO can sole fund $32 million of exploration activities over 6.5 years to earn 70% interest in the PEP including a minimum expenditure before withdrawal of $11 million over the initial 3.5 years.
    • Upon earning 70% interest, the Joint Venture between Metals X and IGO will form and IGO will free-carry Metals X to the completion of a pre-feasibility study (PFS) on a new mineral discovery.
    • Upon the completion of the PFS, the parties must contribute or dilute based on their percentage interest to maintain their respective interests.
    • Should IGO withdraw from the Agreement prior to meeting the $32 million farm-in amount they will retain no interest in the PEP.
Paterson Exploration Project Tenure - IGO Limited Farm-in and Joint Venture Agreement Area