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.
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.
WATCh THE NIFty MOVIES
Nifty Open Pit Study - June 2020
The Nifty Copper Operation - July 2017