Resolution Minerals (ASX: RML) and copper-focused mid-tier mining company OZ Minerals (ASX: OZL) have entered into a farm-in agreement and joint venture on the Wollogorang copper project in the Northern Territory.
The agreement will allow both companies to fast-track the search for copper discoveries in 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.
Resolution Minerals managing director Duncan Chessel says this is an exciting development for the company as the agreement is recognition of the copper prospectivity of the Wollogorang project.
“Copper is a fundamental ingredient to the renewable energy of the future of the planet,” he said.
“The results of our recent air-born VTEM geophysics survey identified dozens of untested conductors and highlighted the sedimentary hosted copper potential of the project.
“This partnership 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.
As part of the agreement, OZ Minerals can earn a 51% interest by spending about $4.9m over five years, while Resolution Minerals may retain 49% interest by electing to participate from the sixth year.
Resolution remains the operator of the project during the earn-in period, with technical input from OZ Minerals.
The Northern Territory ranks in the top 20 of the best mining jurisdictions in the world by the Fraser Institute (2020) and is relatively underexplored.
OZ Minerals is one of Australia’s largest copper producers. It owns and operates the Prominent Hill and Carrapateena mines in South Australia.
