West Perth-based Brumby Resources Ltd has entered into a joint venture agreement with South Perth's Independence Group NL and Western Australian Resources Ltd for exploration of the Goldsworthy platinum, gold and copper in the Pardoo region.
West Perth-based Brumby Resources Ltd has entered into a joint venture agreement with South Perth's Independence Group NL and Western Australian Resources Ltd for exploration of the Goldsworthy platinum, gold and copper in the Pardoo region.
Under the agreement, Brumby will have exclusive exploration rights over the project for six months, during which time Brumby must spend at least $150,000on exploration. It will also be able to enter a joint venture agreement over the project during this period, being able to earn up to 60 per cent of it by spending an amount equal to two times the minimum expenditure required by the Department of Industry and Resources for a period of 3.5 years (including the initial $150,000 expenditure).
Brumby can elect to earn a further 15 per cent interest in the Project by the expenditure of a further $2 million over a further 3 year period.
Brumby has issued 343,750 fully paid shares to Western Australian Resources. The ASX 3B, Application for Quotation of Shares, accompanies this release.
Should Brumby enter into a JV on the Project, Western Australian Resources will transfer its interest in the Project to IGO and Brumby will issue a further 687,500 fully paid shares to Western Australian Resources, (or the equivalent number of shares to equate to a value of $110,000 if Brumby's share price is below 16 cents when it elects to enter into a JV).
Western Australian Resources will receive a 1 per cent gross smelter royalty on any minerals mined from the Project.
The full text of a Brumby announcement is pasted below
The Directors of Brumby Resources Limited (Brumby) are pleased to announce that the Company has significantly added to its Project land holding in the Pilbara Region with the signing of an Option and Joint Venture Agreement with Independence Group NL (IGO) and Western Australian Resources Limited (WAR).
The Company has entered into the Agreement on the Goldsworthy Platinum, Gold, Copper Project located in the Pardoo Region, WA. The Project consists of two granted Exploration Licenses E45/2538 and E45/2539 which are
located approximately 130 kms north-east of Port Hedland.
Certain regional aeromagnetic and gravity anomalies located within the Goldsworthy tenements were considered by IGO to be prospective for iron ore. IGO/WAR further enhanced these regional anomalies by detailed ground
magnetic and gravity surveys prior to drill testing in late 2006. Reverse circulation drill hole (DGRC016) intersected anomalous platinum group elements, gold and copper values whilst drill testing one of several circular gravity anomalies: - 30m@ 220ppb PGE + Au, 0.15% Cu from 60-90m (EOH) beneath 60 metres of cover.
Modelling of the gravity, magnetics and drilling data indicated that the hole just pierced the modelled pipe like mafic intrusive.
Brumby as part of the Agreement will undertake a follow up reverse circulation drill programme to better test the identified mafic intrusive. IGO has the necessary statutory approvals in place to enable this programme to be
commenced once a drilling contractor can be contracted for the work.
The terms of the Agreement which excludes any rights to iron ore is as follows. IGO and WAR have granted Brumby an exclusive right to explore the Project for a period of 6 months, during which time Brumby must spend no
less than $150,000 on exploration, including the completion of 2 reverse circulation drill holes to test the identified mafic intrusive. Brumby may not withdraw from the Project during the Option Period, which may be extended by up to 3 months or more should Brumby be unable to reasonably complete the programme.
At any time during the Option Period, Brumby may elect to enter into a joint venture ("JV") over the Project. If it does so, Brumby may earn up to a 60% interest in the Project by spending an amount equal to two times the minimum expenditure required by the Department of Industry and Resources for a period of 3.5 years (including the initial $150,000 expenditure).
Brumby can elect to earn a further 15% interest in the Project by the expenditure of a further $2 million over a further 3 year period.
Brumby has issued 343,750 fully paid shares to WAR. The ASX 3B, Application for Quotation of Shares, accompanies this release.
Should Brumby enter into a JV on the Project, WAR will transfer its interest in the Project to IGO and Brumby will issue a further 687,500 fully paid shares to WAR, (or the equivalent number of shares to equate to a value of $110,000 if Brumby's share price is below 16 cents when it elects to enter into a JV).
WAR will receive a 1% gross smelter royalty on any minerals mined from the Project.
The Project adds to Brumby's very large and strategic land holding in the Pilbara Region and significantly enhances the multi commodity potential of our exploration focus and overall strategic objectives.