AN exploration company will continue its $2 million drilling program in Mount Isa to follow up its positive results.
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Chinalco Yunnan Copper Resources told the ASX earlier this week that it intended to continue further drilling in the North West region and to become a mid-tier mining group in two years.
The North West Star has recently published the news of positive findings at the explorer’s drilling site of Jubilee – 5.5 kilometres south of the former Mary Kathleen mine site.
But the recent ASX report endorsed by CYU managing director Paul Williams states another drilling program on the Jubilee site will begin in early November at an estimated cost of $345,000.
“CYU’s management team believes that the current difficult mining conditions for resource companies and projects in an ideal acquisition environment,” Mr Williams said.
“As a result, CYU is continuing detailed technical due diligence of certain existing projects that may lead to the formal pursuit of a commercial opportunity in the coming months.”
CYU will also become the sole holder of tenure interests that fall within the Mary Kathleen joint venture portfolio, after Goldsearch Ltd recently diluted its interests to a 1.75 per cent net smelter royalty.
Mr Williams said Goldsearch Ltd was diluting its interests to pursue a significant opportunity in the health-care sector.
“CYU will finalise these dilution arrangements with Goldsearch over the coming weeks,” he said.
The Jubilee prospect is part of CYU’s Mount Frosty joint venture with Mount Isa Mines, which is also part of the Mary Kathleen joint venture.
“Under the terms of the Mount Frosty farm-in agreement, in order to secure an initial 51 per cent interest in the underlying tenure the Mary Kathleen Joint Venture needed to incur exploration expenditure of at least $1.5 million and to have drilled more than 3000 metres prior to February, 2015,” the managing director said.
“Mount Isa Mines has now confirmed its agreement that the criteria have been satisfied and arrangements are being made to have the 51 per cent interest ... transferred to CYU and for a formal Joint Venture agreement to be prepared,” the report said.
