OZ Minerals has locked in a joint venture agreement with Resolution Minerals at the Wollogorang copper project in the Northern Territory.
Resolution has completed a drilling program at Wollogorang since it acquired the project in 2017 and the JV looks to fast-track copper exploration at the site.
The project is located on the Northern Territory-Queensland border near the Gulf of Carpentaria.
Resolution will remain operator of the project during the earn-in period.
OZ Minerals can earn a 51 per cent interest in the project if it spends around $4.9 million over five years, while Resolution can retain a 49 per cent interest by participating in exploration from the sixth year.
If Resolution decides not to participate, OZ Minerals can earn a 75 per cent interest by funding and delivering a positive final investment decision to mine.
“This is a very exciting development for Resolution’s shareholders,” Resolution managing director Duncan Chessell said.
“The JV agreement with OZ Minerals is recognition of the copper prospectivity of the Wollogorang project. In particular the results of our recent air-borne VTEM (versatile time domain electromagnetic) geophysics survey that identified dozens of untested conductors and highlighted the sedimentary hosted copper potential of the project.
“The partnership with OZ Minerals has secured long-term funding, technical exploration collaboration and mining expertise to explore the current identified targets with potential to discover the next large-scale copper mine in the Northern Territory.”
The project has a total mineral resource estimate of 942,000 tonnes at 0.13 cobalt, 0.06 per cent nickel and 0.12 per cent copper.
“The Wollogorang project is located within the McArthur Basin which hosts the world-class McArthur River lead-zinc mine and is surrounded by mid-tier and major companies including BHP, Rio Tinto and Teck,” Chessell said.
Resolution plans to use modern geophysics to identify copper mineralisation at Wollogorang.