West Perth-based mineral explorer Avalon Minerals Ltd has acquired a 70 per cent stake in a North Queensland gold, base metals and uranium project through a joint venture agreement with South Perth's Independence Group NL.
West Perth-based mineral explorer Avalon Minerals Ltd has acquired a 70 per cent stake in a North Queensland gold, base metals and uranium project through a joint venture agreement with South Perth's Independence Group NL.
Under the terms of the agreement, Avalon must spend $125,000 in the first 12 months and a total of $750,000 over 4 years to earn the interest in the Empress Springs project.
The full text of a company announcement is pasted below
Avalon Minerals Ltd (ASX: AVI) is pleased to announce that it has entered into a joint venture agreement with ASX-listed nickel producer, Independence Group NL (ASX: IGO), to earn a 70% interest in the Empress Springs gold, base metals and uranium project in North Queensland.
The project, located 30km south of Croydon, comprises two exploration licences (one granted, one pending) covering a total area of 833km². The region is a well-known gold producing region with historical production of 750,000oz at Croydon and the more recent discovery by Gold Aura Ltd of the polymetallic Wallabadah deposit, located 30 km north of Croydon, where polymetallic vein style mineralization was intersected with significant levels of zinc, tin silver and copper (including 133m @1.1% zinc, 18.3g/t silver, .15% tin and .36% Cu.)
Interpretative work completed in identifying the target zones at Empress Springs has laid the foundation for a walk-up drilling program planned to commence this field season. Avalon plans to immediately commence an exploration program to include a program of Reverse Circulation (RC) drill traverses to be directed across the targeted zones of alteration.
"The Empress Springs project is our fist step into North Queensland and is in line with our stated objectives of acquiring high-quality, advanced projects where exploration work can be undertaken within a relatively short space of time" Said Avalon's Managing Director Mr David McSweeney.
"This acquisition broadens and significantly enhances our existing portfolio of advanced zinc and uranium exploration projects in the Pilbara, Yilgarn and Kimberley regions of Western Australia. It also provides a near-term focus for exploration drilling, which we plan to commence before the end of this year." He added.
The Empress Springs Project also has the potential for uranium mineralization based on exploration drilling carried out by ESSO in the 1970's for roll-front or drainage channel redox-style uranium mineralization. The regional granites are fluorine-tin enriched and also have potential to generate uranium mineralizing fluids.
Under the terms of the Joint Venture with Independence Group, Avalon must spend $125,000 in the first 12 months and a total of $750,000 over 4 years to earn its 70% interest in the project.
