Minotaur and Eloise joint venture partner Oz Minerals Ltd have entered into a binding term sheet to create a new JV for their Jericho project, south-east of Cloncurry.
The new deal provides for Oz Minerals to fund all activities on the Jericho project back-dated to April 1 with Minotaur being 'loan carried' until production with interests set at OZ Minerals 80% and Minotaur 20%.
The 2019 drilling under the Jericho JV commenced early April and concluded on July 24 with 58 holes completed for 14,880m for a total of 96 drill holes since 2017 for 29,740m.
Assays have been reported for 40 holes with the majority intersecting strong copper-gold mineralisation.
Minotaur said drilling was now suspended to allow for consolidation of data and refinement of the geological model to guide the next drill program.
"Minotaur is very satisfied with the outcome of this latest phase of drilling, proving high-grade copper mineralisation occurs in coherent zones over substantial strike and depth extent," managing director Andrew Woskett said.
A formal Jericho JV is coming soon under which Minotaur's loan balance becomes payable only from a mining operation at Jericho to be repaid from 70% of Minotaur's share of positive cash flow. Should an operation not proceed or not succeed Minotaur will be absolved of the debt, which accumulates at the bank bill swap rate plus 2%.
The existing Eloise Joint Venture has been expanded so that Oz Minerals will contribute a further $3 million over 24 months to retain its 70% interest level achieved in March 2019.
Minotaur said new ISCG style anomalies they have identified will form the kernel of the expanded JV work plan.
The companies will also prepare another new joint venture agreement called the Cloncurry Alliance across 24,000km2 of the Cloncurry region to seek opportunities that may complement a resource development project at Jericho.
Potential targets could include existing resource assets, infrastructure, tenement positions and mineralised systems.
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