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Fortescue outlines plan of attack at new copper project

copper, fortescue

Fortescue Metals Group has bought into an explorer’s copper and gold portfolio in Western Australia.

An exploration committee formed between Fortescue and Magmatic Resources as part of a recent joint venture has outlined an exploration program for the Myall project.

Phase 1

Early work has commenced, with most ground exploration activities expected to be completed by the end of the calendar year.

As part of Phase 1 works, the joint venture will drill up to 75 holes at the Corvette, Kingswood, and Monaro prospects at Myall.

The joint venture has commenced a historic core and drill chips re-assay program to provide expanded coverage of multi-element geochemical and hyperspectral data not previously collected.

Existing geophysical datasets will be reprocessed and integrated with the updated geochemical datasets.

Finally, a detailed study of the immediate Corvette/Kingswood area will also be undertaken to identify potential vectors towards higher-grade copper-gold mineralisation.

Phase 2

Exploration will ramp up in Phase 2, with six diamond drill holes, each 400–500m in depth, in the works. This drilling campaign will test multiple prospect areas, with final targets and drill hole designs to be agreed following the integration of results from the Phase 1 work.

Fortescue will foot most of the exploration bill. Under the farm-in joint venture agreement, the company can spend up to $14 million across six years to earn up to a 75 per cent interest in the Myall project.

The major miner can earn an initial 51 per cent interest in Myall by committing $6 million to exploration across four years, then earn a further 24 per cent by committing an additional $8 million over an additional two years.

Fortescue will also acquire a 19.9 per cent stake in Magmatic, becoming a cornerstone investor in the junior.

Myall is located roughly 60km north of Northparkes, Australia’s largest porphyry copper mine.

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